A Merchant Loan Debate

You could have a list of a million reasons why not to get a merchant loan, but the truth is, the funds that you can receive through a merchant cash advance can significantly help your small business. If you’re hesitating on applying for a merchant cash advance for any reason, find your excuse on the list below and find out why it’s no reason to avoid a merchant loan.

Excuse: It costs too much.
Rebuttal:
Yes, a merchant cash advance is more expensive than a bank loan. But a merchant loan is not a bank loan; it is an alternative method of business financing, especially designed for small business owners who do not qualify for bank loans. Ask yourself these questions: Will getting business cash be advantageous to my business, even if I have to pay a little more? Is not getting any money at all and watching my business fall to piece or stunting my business’s growth worth avoiding a slight prices increase? If the answers to those questions are no and yes, respectively, then a merchant loan is not for you.

But most small business owners are willing to pay a little extra if it means they can maintain and/or even improve their businesses.

Excuse: I already have a bank loan.
Rebuttal:
You can use a merchant loan in addition to a bank loan. Most merchant loan providers will still advance small business owners up to $500,000 in business funds even if they have an existing bank loan, as long as they meet the requirements. This is because merchant loan providers implement a repayment procedure that is convenient for both the borrower and the lender. Payments are automatically deducted as a small percentage from daily credit card sales. When sales are low, payments are lower and when sales are higher payments increase accordingly.

Excuse: I don’t have the time.
Rebuttal:

Merchant cash advances are reviewed, approved and funded in a timely manner. The merchant loan application is only two pages long and can be completed in only two minutes. Applicants are required to submit the application along with their last four months of merchant statements, a copy of their business lease, a copy of their driver’s license and a voided business check. Providers can approve the application in 48 hours and fund merchants’ accounts in as little as five business days. That’s a total time of about a week and-a-half.

Excuse: It’s too complicated.
Rebuttal:
The merchant loan is one of the simplest methods of business funding that existence. As mentioned above, the repayment procedure is extremely convenient, taking the responsibility of making payments out of the borrower’s hands. The paperwork is minimal and requirements are simple.

Excuse: I won’t qualify.
Rebuttal:
Merchant loans are easier to qualify for than most other business funding methods. Requirements are as follows:

Business processes at least $3,500 in monthly credit card sales
Owner has no unresolved bankruptcies
Owner has owned business for at least six months
Business has at least one year remaining on lease
Even if your business does not process credit card sales, a merchant loan provider can set you up with credit card processing. After you’ve been processing credit card sales for a few months, you may be able to receive a merchant loan.

Small business owners who process less than $3,500 in monthly credit card sales, or have not yet owned their businesses for six months might be able to receive a starter merchant loan. The provider will advance them a small amount and as the advance is repaid and the borrower builds up his/her credit with the provider, he/she will be able to receive larger amounts with each renewal.

Stop making excuses and get a free online quote today!
Merchant Loans