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Merchant cash advance industry has gained immense popularity in recent past although it had been considered as a new chapter in the market only few years back. Experts are of the opinion that the rise is expected to go even more in the coming years as this type of funding is being opted for among businesses as most preferred alternative funding. The main reason is that this funding is available when the owner is in real need of urgent cash to save or run his businesses smoothly. Studies have been conducted to find out about the actual reason behind the popularity and the most important one that has come into consideration is that small businesses have found this alternative funding quite useful especially during trying times and this has helped them have their businesses turned around. The funding has helped rescue businesses in need. Most of these businesses have been turned down by the banks initially because of the strict rules and policies of the banks. Where banks take into account how long a company has been in business and how profitable the enterprise is likely to be along with considering the owner’s credit history, merchant cash advance provider does not even do a background check or ask for going through pile of paperwork. The business owners who wish to increase their revenue find it extremely difficult to get approved for these advances from a bank, whereas obtaining merchant cash advance seems to be quite easy in such circumstances. When a business owner chooses the option of merchant funding, there is no regular or fixed repayment required by the company. Instead, the lender takes a set of percentage of the daily credit card sales of your company. This costume till the amount taken in advance along with the fees is recovered by the lending company. Most often this time period is one year and the lender tries to recover his cash advance within that period of time. One of the attractive features of merchant funding is that the lender takes lower repayment amount during slower months in business and this helps the business owner feel stress-free with regards to the repayment of the cash advance that he has taken. Another attractive aspect is that there is no due date of repaying the advance. Apart from this, there is no collateral required and so the borrower is free from the worry of losing his property or asset, whatever is staked.
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merchant cash advance, merchant funding,
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