A Small Business Cash Advance Can Assist Business with Bad Credit

(prHWY.com) May 19, 2012 - Florida, FL -- With the economy still on the sidelines following the sub-prime mortgage debacle, small businesses are finding it more difficult than ever to qualify for standard business loans. A small business cash advance could be a perfect answer. A quick turnaround time, sizable advance totals of up to $250,000, and a flexible remittance plan are all reasons for applying for this alternative avenue for vital funding.
But, a small business owner would be smart to look at more than just the funding they can procure. The North American Merchant Advance Association (NAMAA) has a list of best business practices in which they approve for providers offering a small business cash advance. Assuming the company providing you a business cash advance agreement won't apply these practices, it is probably best to look elsewhere. The procedures are as follows:
business loans - Provide accurate disclosure of fees - NAMAA does not condone closing fees as a part of the application procedure of merchant advances but suggests that any such fees be plainly discussed and disclosed. The repayment amount needs to be precisely discussed and determined before completing the contract.
- Furnish plain disclosure of recourse - Actually, small business cash advances are not business loans, rather they are a purchase of future credit and debit card receivables. As such, the merchant may be held personally responsible for any capital not paid back if the merchant chooses to infringe the contract.
- Be realistic with a merchant's cash flow - A standard arrangement includes the CEO paying a specified percent of credit card receipts every month.
- Advertising documents disclosure - All marketing materials should make it clear that the program is one of factoring, not a loan.
- Monitor your Sales Agents/ Brokers - business cash advance providers ought to ensure that their sales agents or brokers are suitably representing the product.
- Proper payoff of current small business loan balances - should a company opts to acquire an additional advance with a new funder the new advance needs to immediately pay the previous balance rather than relying on the business owner to take care of the balance.
Not to mention if you obtain money from family and friends they are going to believe they have a say as to how you should operate your business. You have worked hard to get here and the last thing you want is a new boss. A merchant advance will help to supply the cash you want to expand your business. Although this type of program is more expensive than a typical loan, it can be extremely useful for many establishments. The wisest thing would be to look at the options. There are many businesses providing similar programs. Make positive you do not pay closing fees and make sure to compare your offers to be certain you acquire the best deal you qualify for.

About the Author:

Business Loans - At Merchant Cash Finder we know that comparing different quotes is the best way to shop for a Merchant Cash Advance. We take pride in helping business owners get the funds they need while making sure they receive the best deal! need while making sure they receive the best deal!

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