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Merchant Cash Advance

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As a small business owner, you need to have a good cashflow, enough money coming into the business to pay for things like inventory, expenses and unforeseen costs. Ideally you need some savings to fall back on, which is something not all businesses have. Securing funding for a small business can be challenging, especially if your business incomings fluctuate monthly. A merchant cask advance is the ideal solution for merchants looking to secure funding, but who do not have any assets to use as collateral. Unlike a business loan, which would require something like property or inventory to be used as collateral, even for a short-term loan, a merchant cash advance secures the short-term loan against future credit and debit card sales. This is similar to invoice factoring, where a loan is secured against the sales ledger. However, this uses the sales ledger to estimate future card earnings, and then takes a percentage of the card payments a company takes each month, over a predetermined number of months, to repay the unsecured loan.

Wergs Consultancy

Our merchant cash advance business financing

Our alternative lending merchant cash advance service provides small business loans and debt financing to small businesses, such as high-risk merchant. This financing service can help your small business with:

Ensuring you have an adequate level of working capital each month, i.e. enough income for expenditures and emergencies, but without the terms and conditions of a standard business loan.

As you will be contracted to pay back a percentage of your card incoming payments, rather than a specific amount, you will have better control over your cash flow. In the months where you don’t earn as much, you will pay less back to the loan, ensuring you don’t struggle with repayments.

Debt financing can be integrated into the merchant cash advance, so you are not only able to ensure a steady cash flow, but you also clear all debts.

Through this business financing you can also benefit from credit card processing and debit card payment processing.

This service is suitable for all kinds of small businesses. You do not need to have assets, such as invoices, inventory or property, even a high-risk merchant will be considered.

Merchant cash advance small business loans explained

The merchant cash advance is an innovative process that provides small business loans to small businesses, who do not have any assets to use as security. Instead unsecured loans are given to businesses who agree to use their future debit and credit card sales as collateral. The process of a merchant cash advance is relatively simple:

The lender will look at the sales ledger of the business, specifically at their average card sales value.
Using the sales ledger, the lender will determine how much they are able to loan the small business.
An offer is made from the lender, outlining the terms of the merchant cash advance agreement. The offer will include the cash amount the lender is giving to the business, and the percentage of the businesses credit and debit card sales that will be payable to the lender. It will also include the length of the loan.
Once the business agrees the terms and the contracts are signed, the cash advance is paid to the business.
Monthly repayments for the short-term loan are taken through the credit and debit card the business receives. If a business receives lower card payments, they pay a lower repayment, making these repayments more manageable in quieter months.

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Wergs Consultancy alternative lending

If you are a small business, contact one of our agents today. We will take the time to understand your business, its current situation, your working capital needs and the future requirements of your business. With this information we will be able to provide you tailored business financing and alternative lending options that suit you. We will help you to understand the financing agreements offered to you, including your responsibilities and the costs, and our team provide you with impartial advice and support from the very start. The service our highly experienced team provide is second-to-none, we communicate regularly and clearly with our customers, to ensure complete customer satisfaction. Furthermore, our extensive network and experience in the industry, means we are able to provide a quality service and reputable funding options, at affordable prices.

To understand this alternative lending solution in more detail, speak to one of our specialists, we can answer any questions you have and make sure you’re making the right choice for your business. Contact a member of our friendly team.

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