PRO'S & CON'S OF BUSINESS TERM LOANS
- More affordable cost of money
- Establish banking relationships
- Longer repayment terms
- No pre-payment penalties
- Good credit (700+) usually required
- Lengthy application process
- Lots of documentation required
- More “no’s” than “yes” to applications
The Simple Process of a Merchant Cash Advance:
- Business owner accepts credit cards, and processes more than $5,000/month in credit card transactions.
- Business owner completes simple one page application.
- Based on their revenue, business owner receives an offer from the bank.
- Business owner accepts the terms and signs lending agreement.
- Lender wires funds directly into business owners bank account, usually within 1 business day.
- Lender receives a small portion of business owners credit card sales on a daily basis in order to repay the Merchant Cash Advance.