When a company gets a merchant cash advance, the trade is something connected with the procurement and selling of future credit card income. Here, no regular fixed payments will be required by the company. A certain percentage of money from the credit card sales is collected on a daily basis by the lender. The collection will continue until the lender gets back the money they have given along with the premium. Generally, the financier will try to collect the advance money within a year.
One important thing that attracts companies towards this option is that, when they have a slow sales, they will be making a lower level of payment as their credit card income will be lower during this period. Another feature is that there is no due date pressure for the borrowers. It can be paid off when enough credit card sales are made and also no collateral security is needed to get this type of finance.
Actually, it is not a loan and it is just an advance of money against the future credit card sales. Attractive merchant cash advance rates are provided by some financing companies for helping out small businesses, who can pay off the money when their credit card sales increases. They provide this type of financing under different packages for smaller businesses to select from. Some of them are offered at very low rates like 1.25-1.29 and even at the rate of 1.39 and these rates depend on the package selected by the small business owners.
So, select a company that offers attractive merchant cash advance rates and enjoy a considerable return from the proceeds. When you are in immediate need of some cash, this can be a great alternative.