Who Cannot Use the Business Loans Alternative?
Business cash advances are a great alternative to the traditional business loan, but there are some small business owners who cannot take advantage of this method of business financing.
Home-Based Businesses
In order to qualify for an advance, the business loans alternative, a merchant must run his/her business out of a storefront/office. Why? Since merchant loans are unsecured and require no collateral, merchant cash advance providers are taking a big risk when they advance small business owners up to $500,000.
Merchants who operate from an office or store-front will usually have a business lease. A small business owner who is held to a lease is more likely to continue running his/her business until his/her advance is fully repaid.
Non-Merchant Businesses
One of the selling points of the business loans alternative is the flexible method in which it is repaid. Rather than requiring merchants to make monthly, out-of-pocket, fixed payments, providers deduct a small percentage from a business's daily credit card sales. This procedure takes place for six to eight months, until the advance is repaid.
Non-merchant businesses who do not process credit card sales will not be able to partake in the repayment method that business cash advance providers use. Therefore, they are ineligible for advances.
Merchants with Unresolved Bankruptcies
Small business owners who receive merchant cash advances cannot have unresolved bankruptcies. Merchants who have filed for bankruptcy in the passed, but have resolved the issue may still be eligible for a business cash advance.
If you own a office/storefront business that processes credit card sales and you have no unresolved bankruptcies, the business loans alternative may be right for you. Get a free online quote today!
In order to qualify for an advance, the business loans alternative, a merchant must run his/her business out of a storefront/office. Why? Since merchant loans are unsecured and require no collateral, merchant cash advance providers are taking a big risk when they advance small business owners up to $500,000.
Merchants who operate from an office or store-front will usually have a business lease. A small business owner who is held to a lease is more likely to continue running his/her business until his/her advance is fully repaid.
Non-Merchant Businesses
One of the selling points of the business loans alternative is the flexible method in which it is repaid. Rather than requiring merchants to make monthly, out-of-pocket, fixed payments, providers deduct a small percentage from a business's daily credit card sales. This procedure takes place for six to eight months, until the advance is repaid.
Non-merchant businesses who do not process credit card sales will not be able to partake in the repayment method that business cash advance providers use. Therefore, they are ineligible for advances.
Merchants with Unresolved Bankruptcies
Small business owners who receive merchant cash advances cannot have unresolved bankruptcies. Merchants who have filed for bankruptcy in the passed, but have resolved the issue may still be eligible for a business cash advance.
If you own a office/storefront business that processes credit card sales and you have no unresolved bankruptcies, the business loans alternative may be right for you. Get a free online quote today!
Gaston C. writes articles about Business Loans for Merchant Resources International.
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