The holiday season is fast approaching. For small to medium size retailers, the season means stocking up and boosting your inventory levels to meet the demands of holiday shoppers. Chosen Payments can provide short-term financing that helps your business without leaving you short on cash.
Merchant Cash Advances offer a very convenient option for Chosen Payments merchants. Whether you have interrupted cash flow, an improvement project or inventory demands, Merchant Cash Advances are quick to obtain and offer very flexible payback terms. Merchant Cash Advances are sometimes referred to as a Merchant Loan.
Chosen Payments, a leading Merchant Service Provider offers flexible terms that allow you to get an advance on future credit card transactions. Even though you will pay back over time, Merchant Cash Advances are not true loans since you are relying on your future sales to pay back the advance. The biggest advantage of a cash advance is that funding is provided very quickly in most cases. The risk analysis is very different when compared to traditional bankers and the way they evaluate a business for a loan. For a newer retail establishment that might not qualify for a traditional loan or a business that needs immediate cash and has at least one-year of history with us, we can generally provide you with funds very quickly.
How Does it Work?
Chosen Payments advances funds after coming to an agreement on the amount of the advance and how the money will be collected using a “holdback” system. The holdback is a predetermined percentage of future credit card transactions that are withheld to pay back the cash advance. The process of holding back a percentage of transactions continues until the advance is paid back in full. Chosen Payments bases the amount of cash advances upon recent processing history and thus eliminates the need for any collateral.
Should you take a Merchant Cash Advance?
If you need quick access to funds, a Merchant Cash Advance may be a good option. Also, the credit requirements are much less than what your bank might require for a small business loan. The process to get an advance is quick and easy. It takes anywhere from a few hours to a few days to get approved but once approved, the money is put in your bank account just like a normal credit card transaction.
Other Things You Should Know
A Merchant Cash Advance does not help build your business’s credit profile. This is because it is not a loan and credit card processors do not report these transactions as a loan or report your payment history to credit bureaus. If your business needs a cash advance to finance an expansion project, a one-time marketing endeavor, purchase equipment or other needs for your business, consider a Merchant Cash Advance. If you can’t qualify for a bank loan and have a consistent history of daily credit card transactions, Chosen Payments can help you. Call 855-4CHOSEN to see how much you can have advanced today.