How to Obtain Merchant Capital in Today's Economy
Since the financial market still on the ropes after the sub-prime mortgage mess, businesses are finding it harder than ever to qualify for a standard bank loan.
(prHWY.com) May 25, 2012 - Florida, FL -- Florida, May 25, 2012 - Since the financial market still on the ropes after the sub-prime mortgage mess, businesses are finding it harder than ever to qualify for a standard bank loan. A small business loan through your merchant account, could be a perfect solution. A quick approval time, sizable advance totals of up to $250,000, and a flexible remittance plan are all benefits for obtaining this alternate course for required capital.
However, a small business owner would be wise to look for more than just the working capital they can procure. The North American Merchant Advance Association (NAMAA) has a list of best business practices in which they back for merchant capital providers. Assuming the company offering you a merchant capital loan doesn't use these practices, it is more than likely smartest to check elsewhere. The practices are as follows:
 Give accurate disclosure of fees - NAMAA does not look fondly at closing fees as a part of the application process of merchant advances but believes that any such dues be clearly explained and provided up front. The repayment total will need to be completely explained and determined prior to finishing the details.
 Give clear disclosure of recourse - Actually, merchant advances are not loans, alternatively they are a purchase of future credit and debit card receivables. Therefore, the merchant could be held personally accountable for any monies not returned if the merchant opts to breach the agreement.
 Be realistic with a merchant's cash flow - A standard contract involves the CEO repaying a specified percent of credit card revenues each month.
 Promotional materials disclosure - All marketing documents should make it transparent that the arrangement is one of factoring, not a loan.
 Monitor your Sales Agents/ Brokers - Merchant advance companies should make sure that their sales agents or brokers are appropriately representing the product.
 Appropriate remittance of outstanding small business loan balances - if a business opts to take an additional advance with a new company the new advance should immediately cover the previous balance instead of trusting the owner to pay off the balance.
About the Author:
Merchant capital - 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!
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Merchant Cash Finder
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