Obtaining Equipment Financing Through Merchant Cash Advances
When a business is looking for a way to obtain equipment financing, it is important to seek the right type of funding. The right company to borrow from is essential when considering the equipment you need to rent or purchase. When money is required for this, speaking with lenders or other alternative funding options is highly recommended.
Understand the different options available to those businesses searching for a way to obtain equipment financing through various means.
These four are the most popular methods of obtaining the equipment financing that is required by your company. By learning more about each one and doing further research on each, you can determine which is the best for your business to use. Remember, each option has pros and cons to work with and depending on what you want from the equipment financing, one might be better suited for you over another.
Small Business Loan Association
The small business loan association is one of the top places that provide loans to those that are searching for funding for their business. They will ask you questions regarding the loan you want and need, how you will use it, repayment information and more. They want to make the best decision on who to work with and through the use of your background, they can ensure that you get the funding you need.
On the other hand, it is important to note that they require a lot of paperwork to have these processed, want you to be in business for quite some time and have proof of this, have a good credit history, standing and score and also be able to wait for a bit while they sort through the paperwork and help you get approved.
Not every business owner is going to have all of this paperwork, have been in business this long and the number one reason why people are choosing not to use these loans is that they do not have the credit score or history required for them. While they are less strict than other options, they still cannot provide the right information and standards needed.
Read More: Retail Finance Companies and the Best Options to Choose From
Private Bank Lending for Equipment Financing
Private bank lending is much more strict than the above option. However, this is more secure since it is through your original lending bank which is something that many people want when it comes to borrowing money from someone. They want to trust that they can borrow confidently without having to worry about the bank moving in on them.
Not a lot of businesses will choose to use private bank lenders for their equipment financing because of the guidelines that they have. If you do not have a perfect credit history and score, then you probably are not going to get the loan. Not only that, but you also have to keep in mind that with private bank lending, they need to make sure your business has been in business and profitable for quite some time. This is hard to prove, especially if you have only been in business for around 6 months or so.
Many choose to walk away from this option as it is not one that can help just anyone. It might be better for the business owner to obtain their equipment financing through another means.
Merchant Cash Advance Providers as an Alternative Source of Equipment Financing
Merchant cash advances are ideal for just about every business and individual out there that wants money sooner, not later and that wants to work with a provider that speaks to them, answers their questions and ensures that their business gets the cash it needs for the equipment financing. When they do this, they’ll know they’re trusting in a company that knows what it is doing.
Merchant cash advance providers do have some stipulations when it comes to qualifying for the financing, just like everyone else. The only difference is that they’re more lenient and they want to work with just about everyone out there because they know that working from the ground up is very hard to do and they want to provide you with all of the help that they can provide. We’ve all been there.
The merchant cash advance providers require the borrower to have been operating his business for at least 6 months. The business has to be able to show that they make a steady revenue and that they can pay back the advance when it is provided to them. A percentage is taken out of the credit and debit payments made to their business so they never have to worry about sending a check or anything in.
The merchant cash advance providers are one of the leading ways for businesses to obtain the equipment financing that is needed when the time comes. You can be certain that the equipment that you need is there, that your business continues to run and that you make the best decision, in the end, to move forward with all that is being done. It is worth it.
Many recommend that the business seek out investors for their companies. Some may already have investors that can provide some extra funds. This is a great option since the investors already believe in your company and are invested in it entirely. Due to this, they’re more likely to provide some more financial backing to keep the company going, especially when just equipment financing is needed.
They do not ask the credit standing of the owner and they do not care how long the business has been running if they are an original investor. However, not everyone company has an investor which means that those that do not would need to find some. This is much more difficult than you think.
With this being said, if you do not currently have investors, it is best to try out another method for obtaining the financing since these investors will want to see your revenue and other information to find out if they’re able to provide the cash needed. With this in mind, it might be great for the future of the company you’re running but perhaps not ideal at this particular point in time.
Read More: The Alternative Finance Market: What is Out There for Small Companies?
Signing Up with a Merchant Cash Advance Provider
Obtaining the merchant cash advance is not difficult. Not at all. You can easily go online wherever you are and sign up to obtain the funding that is needed. With this being said, it is important that you work with the merchant cash advance provider closely and know that you ask for the right amount. They’re generous and they understand that you need these funds to keep your business going.
There are only a few steps that need to be accounted for when it comes to signing up for an advance:
- Go online and fill out the application that is on the website, and send it in. Make sure to answer all of the questions on the application, it should only take a few minutes.
- Hear back from the merchant cash advance provider about the funding that they can provide for the equipment financing that you’re in need of. You can then choose to accept or deny the offer given.
- Once you accept, send back the required and requested paperwork and other information so that the cash can then be processed and sent back. They want you to get the equipment financing you need quickly.
- They will file and accept the papers and transfer the equipment financing you’re in need of to your business bank account within 72 hours.
These steps from start to finish are done within a week’s time. This is always a good thing to think about since you want to make sure that you’re making the right choice to move forward with all that is being provided. Never have to worry about a thing since the merchant cash advance provider is there and you do not have to show them too much proof of anything. They want to help.
If you need equipment financing, now is the time to choose the lender or provider for your needs. The business you run depends on these types of funding so it is important to consider all that comes with each one of them. The business that you have can be of any nature and the providers of this funding will still work with you since they do not have a set industry that they provide this funding too.
Are you ready to move forward and work with the merchant cash provider that will help you with the funding you’re in need of? They have everything you need, you just have to go online and sign up for their services today. It can be well worth it in the end. You will have your funding and someone to go too when funding might be needed again for your business. They will have you covered again if all goes well the first time. They help one and all that require frequent funding for whatever business reason or need that they may have. Speak with them today to learn more!
There are many types of chargebacks, and the process can often be frustrating, costly and timely.
This document will help you better understand what a chargeback is, the time frames in which a chargeback can occur, and how to effectively prevent these from impacting your busines
In 2000, in the wake of the dot-com bust, Amazon was forced to sell almost $700 million in convertible bonds to investors abroad. In fact, the company had to offer an extremely interest rate (7%) just to complete the deal. A month after they closed the deal, the...read more
How do I know if I’m paying too much?
Take the fees on your monthly statement and divide them by the total volume that your business processed for the corresponding month. Multiply that number by 100…