Are you ready to take your business to the next level and make the big investment into expanding your existing business? If you are, you should know that taking a business loan or dipping into your retirement funds for business capital are not the only financing options that you have. Unsecured business loans are quickly growing in popularity.
Unsecured business loans are great solutions for growth investment, particularly if you’re looking to invest in an already successful operation. Business cash advances and merchant cash advances are two options unsecured loans for venture capitalists regardless of credit scores.
Merchant cash advances are offered to companies as investments into future financial growth. Lenders will provide cash to businesses that have strong earnings potential because the loan recipient will promise a percentage of their daily credit and debit card sales in exchange. The percentage is paid as the cards are swiped, and continue until the debts have been paid in full.
Here are some advantages of this type of financing:
If you qualify, cash is available quickly, usually within a few days. This is much quicker than banks are typically able to provide funds. Merchant cash advances are not considered loans, and repayment is made through future sales rather than in large monthly installments. As such, the repayment amount changes daily, depending on the profits earned. This means that payment amounts fluctuate right along with the ebb and flow of business. Lenders form a partnership with payment processors, so repayment is hassle-free and instantaneous. Credit scores are not taken into consideration, only the strength of the business is.
Those that don’t accept payments through credit card sales can still take advantage of business cash advances. Lenders go through the business’s bank to process daily payments. One advantage of business cash advances is that the loan amount that will be repaid is agreed upon prior to signing the contract. Other than that, it is structured very similar to a merchant cash advance.
These funding options are not intended to be used as start-up funding or as bailouts, but they do provide an easy way to obtain short-term funding for successful businesses that want to invest into further growth. Funds are able to be used for a variety of projects including: software updates, remodeling, product development, and employee training.
Obviously we would advise you to think carefully before involving yourself in taking out any sort of a loan. However, the aforementioned options should give you some ideas and provide you with plenty to think about.