There is a time in everyone’s business where they can use a bit of extra cash. It doesn’t matter if it due to bills, an upcoming expense, an upgrade or remodel or really anything else, having the extra money on hand is often important, but unless there is a secondary income source available for making quick cash, obtaining the money might not prove possible. With the help of a merchant cash advance loan though, you can receive the extra money at your disposal. You just need to know a few terms ahead of time before going into the loan.
Terms
There are different terms at play when signing up for a merchant cash advance loan. The basic term describes your repayment period, when the interest rate starts to kick in, what you need to pay every month and everything else regarding receiving your money and paying it back. As long as you stick to the terms, you’ll have non problem with the cash advance loan.
Default Terms
Default terms underlines what must happen for you to be considered defaulted on the loan. Should this happen, the collateral you put up becomes property of the merchant cash advance lender. Make sure to understand the default terms, as it might be not paying a due-bill for 30 days or missing two payments, for example.
Collateral
Collateral is what you put down in order to receive a loan. Collateral can change from one location to the next. If you were to go to a pawn shop for a loan, you might put down a bike, power tools, musical instrument or your car as collateral to receive money and the money you are paid is based on the estimated value of what you use as collateral. Should the loan default and the default terms come up, the collateral becomes forfeit and is owned by the money issuer.
Rates
Rates refers to the interest rate you must pay back on the loan you receive. If the loan has a five percent interest rate on it, you pay back the monthly amount plus five percent. The interest rate is outlined in the terms of the merchant cash advance loans.
Fees
Different lenders have different fees. There might be an application fee or a late payment fee or even a fee on paying off the loan faster than the allotted amount of time. The fees and all other pertinent information is included in the terms and conditions of the loan.
How Easy to Apply?
Applying for a cash advance loan is easy to do. It doesn’t matter if you have poor credit, have gone through bankruptcy or have other financial problems. This is one of the major benefits of applying for such a loan and why so many people turn to apply for it.
Turnaround
The turnaround of the loan is how quickly you receive the loan after applying for it. Often times, in the case of a merchant cash advance loan, the turn around is less than 24 hours.
Credit
Your credit score often has an impact on lending limits and interest rate. However, your credit score is not taken for a merchant cash advance loan.
Bankruptcy
It doesn’t matter if you have filed for bankruptcy before, you still qualify for a merchant cash advance loan.
Painless Processing understands the need for businesses to get the cash they need right away. Learn more about merchant cash advances by speaking to one of our experts today!
