Online Installment Loans

 

An installment loan is a popular form of borrowing in the modern world. Borrowers can borrow the money to deal with any emergencies that they may be facing, such as medical and other expenses. You are required to repay the loan in equal installments. The number of installments will vary based on your income, interest rate and your lender’s terms and conditions. You will repay the loan gradually until you clear it. The loan is to bridge the gap between payday and dealing with the financial emergency. Life is full of surprises and it can change instantly, driving you into tough financial times. As a result, you may not have the cash to meet urgent financial needs. Often, financial emergencies usually cause stress to the person involved and you should be in a position to handle the problem quickly. Features of online installment loans include

  1. Quick decision
  2. Wide range of borrower eligibility
  3. Simple loan request process
  4. No hidden charges
  5. No collateral
  6. No application fees
  7. Quick transfer
  8. Unique approach of assessing creditworthiness

Easy Loan Request Process

Easy Loan Request Process
Easy Loan Request Process

When you want to request for online installment loans, it is easy to use our platform to access loans from the lenders in our network. We are ready with a professional support staff to help borrowers understand the loan and their terms and conditions. Depending on what you want to use the loan for, once you meet the requirements, you will be given an update by your lender on your qualification status. In the conventional systems, unless you have a perfect credit, you could not qualify for a loan. Once you have filled out a loan request form available on our website, the next thing to do is to send it to us and we will forward it immediately to the lender who will fund your loan.

  • Many people confuse payday loans with installment loans. Payday loans are not installment loans. In most cases, your lender will require a post-dated check as a form of guarantee that you will repay the loan on time. In other cases, you can allow the lender to make an automatic electronic deduction from your account.

Online installment loans can help you deal with unexpected expenses. Here you can request for online installment loans to help you deal with them quickly and avoid further complications. Common features of online installment loans include

  • Online installment loans can help you deal with a current financial emergency.
  • Your loan request is processed quickly.
  • You will receive the money in your account as soon as your lender approves the loan request.
  • Even with a less than stellar credit history, you can qualify for a loan as long as you meet the criteria.

Why online installment loans?

Why online installment loans?
Why online installment loans?

Many people are looking for extra cash to deal with emergencies and they do not understand the options that are available to them. If you are in a hurry and want a loan, online installment loans are simple, quick and easy to request. As long as you have an internet connection, you can log in our website and make the loan request. We will forward the information to the lenders in our network who will fund your loan. As the name suggests, you are not required to repay the installment loans all at once.

Criteria of getting online installment loans

Criteria of getting online installment loans
Criteria of getting online installment loans

Requesting for an online installment loan is quite simple and you are not required to produce chunks of documents. Here are some of the criteria that you should meet.

  1. You must be at least 18 years of age, otherwise you will not get the loan.
  2. You must be a legal resident of the United States of America.
  3. You need to have an active checking account. This is where the money will be deposited and where your lender will deduct the loan amount if you give them access to deduct the monthly deductions.
  4. You must have contact details (phone number or working email address) where your lender can reach you in case of any changes or updates on the loan.
  5. The last and very important aspect in qualifying for online installment loans is proof of recurrent income or employment. Without a stable income, some lenders see it as a risk to grant you a loan.

Advantages of Online Installment Loans

There are various reasons why people take out installment loans. Often they need money fast to deal with upcoming emergencies and they are daunted by the conventional lending institutions because of their poor credit scores. However, online installment loans allow the user to access loan facilities. Benefits of online installment loans include

  • Speed – this is the most crucial aspect for many people making loan requests. You want the process to be as fast as possible because you are dealing with an emergency. We have simplified the loan request process and will connect you to hundreds of lenders in our network who will finance your loan.
  • We do not promise instant approval on any loan type. However, our network of lenders have experience in this field and they know what the clients want and they will deal with your loan request as soon as they can and send you feedback via your email address.
  • The application process is simple and user-friendly. The whole process can be done online.
  • Since we have many lenders in our network, you can get a range of loan options and choose one that suits your needs.

Your lender will perform a soft credit check to evaluate the information that you have given. We strive to expedite the loan process to allow borrowers to get feedback as soon as the lender verifies the information supplied.

 

 

Installments loan definition

 

Installments loan are loans that you are required to make regular repayments over a defined period of time. The objective of your borrowing is to get cash now and spread out the payment over a period of time.

Getting ready for installment loans

 

installment loans
Getting ready for installment loans
  • First, you have to be positive about the whole endeavor. You can do this by checking out your finances. Calculate the exact amount you need. Also, remember to check your credit score.
  • It is important to know where you stand financially. This is because lenders will be looking at your profile before they offer you an installment loan. You can check your annual credit report and see your current status. Make a list of your regular monthly expenses and fit it to your income. With this, you will be able to know the amount you will be comfortable paying in installments.
  • Check out the terms and conditions of your lender. You should focus on the time and interest factors. Expect slightly high interest than usual. The interest rate is just a strategy allowing lenders to give you a high-risk loan.
  • It is crucial to find out the different features of lenders. With us, you will find lenders who offer specific interest-only period on large loans. This is aimed at making repayment flexible for you. You will have a chance to acquire an installment loan and pay back small interests for a longer period of time.
  • Lenders you will find in our network have quick support systems that ensure that your queries are responded to quickly. You will be dealing with a lender directly. Lenders are looking forward to having a good business relationship with you.
  • We offer you an opportunity to take advantage of the several lenders who are willing to offer you an installment loan even with your bad credit score. When you compare this option to a traditional lender, you will find it appealing. Lenders in our network understand your urgent financial obligations They have entered the lending market to meet the rapidly growing demand. Most of those with bad credit would not consider going to a financial institution for a loan. This is because your request is likely to get rejected and the decision will take long.
  • You will be signing up for lenders who offer good value. This means that you still have a chance even after a rejection from a traditional lender.  Many lenders are willing to assist you. We have links to many lenders offering reasonable installment rates that will definitely suit your needs. They have clear terms with no hidden charges.
  • If you are in need of an installment loan with a bad credit history, you have to do some research. When you keep to your budget, you will eventually find the right lender for your situation. The offers are very appealing but you need to take your time and look at various lenders working with us. Prepare to pay the installments as scheduled in order to maintain a good credit profile and improve your financial rating.

Features of installments loan

  1. Features of installments loan
    Features of installments loan

    Installments loan are loans that you can qualify for with or without presenting collateral to your lender. You will only be required to assure your lender that you are able to pay back within the given time. The amount you request plus interest is divided into equal payments. You are going to be paying the amount you owe in portions.

  2. These loans are more reasonable and also safer for you when you have a bad credit score. They are safe because lenders have affordable terms. The fact that you will be paying back your loan over a period of time makes the process easier compared to paying a whole amount in one go.
  3. You will be required to abide by a specific time of repayment. With several payments to make, you are in a better position to plan out your budget. This will ensure that you are paying your installments on time.

Working with installment loans

 

Working with installment loans
Working with installment loans
  • First, take your time to look at your options carefully and settle for an amount you are comfortable with. For instance, if your objective is to improve your credit rating, then start by requesting for a small amount that you are sure you can repay back without fail. Remember that failing to repay will work against you.
  • Be ready to create a good profile for lenders. Your profile should portray that you have the ability to pay back a loan.
  • It is fortunate that bad credit lenders are available right for you at the comfort of your home. We have lenders offering loans with minimal requirements. Some of the basic requirements include your personal identification, income amount and an active bank account.
  • You need to prove that you have regular income for a lender to approve your loan request. He will take a look at your profile and offer you an amount accordingly.  You need to ensure that you only provide accurate information.

Types of installment loans

There are two types of installment loans. They include;

  • Types of installment loans
    Types of installment loans

    Secured loans: these loans are those offered based on your provision of a collateral which may be your house, car, stocks and even bonds, among others. With these loans, you will get lower interest rates. This is because your lender has your property as security.

  • Unsecured loans are loans offered without collateral. Your lender will expect you to pay a slightly higher interest. There are many lenders working with us who are willing to offer you such loans.

The fact that securing a loan from a bank is quite tiresome makes lenders in our network worth a try.

 

Direct lenders for bad credit installment loans

 

Installment loans has come in handy as a simple way of getting cash for many people. This is especially when you have a bad credit score and do not want to go seeking assistance from the banks. Lenders have come out to fulfill your needs. These loans are common and several direct lenders are available in our network to give you more options. The lenders have loan products that can accommodate any of your financial needs with a faster process. They will offer you installment loans to assist you with your urgent financial matter at affordable interest rates. We will connect you with different types of lenders who are willing to offer you a loan. Your responsibility is to search through our list and find the appropriate lender for your emergency. Even if you have a poor credit score, you will be able to find direct lenders for bad credit installment loans. They have flexible terms for you.

Things to Do

  1. Things to Do
    Things to Do

    Before requesting for a loan, it is important to estimate how much you really need. Most of the time, you will be tempted to go for a higher amount. It is not advisable. Only take out an amount that you really need and are comfortable repaying.

  2. Know that these loans have interest rates that are also based on the amount you borrow. Request for a loan that will not make it difficult for you to pay your other monthly bills. The lender will be expecting you to remit a certain installment amount every month without failure. It will be easier to pay if you request for a loan that is just enough.

Installment Options

  • Installment Options
    Installment Options

    This option makes these loans from direct lenders worth trying. When seeking out a loan, you need to be sure of the installment plan fits your income schedule. For instance, you can settle for a plan that allows you to pay after your pay day. This means you shall have a specific date after your pay check to pay your lender. You can choose this, however, other lenders may insist for your checking bank account so that the amount is withdrawn as soon as you earn.

  • Lenders are also aware that you are sometimes not able to remit your payment. However, you will have to inform your lenders beforehand for him to organize a plan for you. You can get a lender with an extension option that will keep you on track. Even though you will have to pay additional charges, it is better than defaulting. In addition, this is why it is important to request for an appropriate loan. When you default a loan, you are creating a bad record for your credit profile. Note that your profile is not just important now but also for your future financial endeavors.

Features of Direct Lenders For Bad Credit Installment Loans

  • Features of Direct Lenders For Bad Credit Installment Loans
    Features of Direct Lenders For Bad Credit Installment Loans

    These loans have numerous benefits in that they are easy to get and have the least number of requirements that you are required to meet. The major requirement is your source of regular income. All lenders want you to assure them that you have an active account that is credited on a regular basis. After you have filled out and submitted the required documents online, you only wait for the loan approval before you receive cash in your account. It is a faster process compared to getting a loan from a traditional financial institution.

  • Direct lenders for bad credit installment loans will require you to provide basic information to your lender of choice. Fortunately, lenders already know that your matter is urgent and will be working to approve your request a fast as possible. Whenever you decide to find a direct lender with us, you will be on the right track in your quest for financial aid. Their installment option makes your choice right for your situation.
  • The lenders you find will offer you customized installment plans that make it simple to repay during the loan period. You will be paying back the loan in form of small amounts for a defined period of time. With this, you are almost sure that you will not default. Many of those who default have always opted to prioritize their other bills than the loan they owe. You need to calculate the amount you will be paying every month and incorporate that into your monthly budget. This way, you will not be overwhelmed by repayments.
  • The loans are for your convenience as lenders only work to satisfy your need as fast as they can. You will be sitting back on your couch at home and waiting for a notification that your account has received cash. The process is all open and easy to use.
  • Lenders ensure your privacy and no other party will know about your loan issue.

Where to Find Direct Lenders

  1. Loans for Bad Credit
    installment loans people bad credit – Payday Loan Online

    The services of direct loan lenders with affordable installment loans for your short term goal are readily available to you. You can never predict when you will face an emergency. You are safe with us when you get to know about direct lenders for bad credit individuals.

  2. Lenders in our network are certified and are working within the rules of your particular state. Their services are legal with no hidden terms that will leave you surprised especially should you default at some point. You will be protected from any unnecessary financial action that usually occur with most financing institutions.

For several years now, direct lenders for bad credit installment loans have seen rapid growth. Challenging times have forced many people to look for alternative avenues of acquiring cash. Traditional lenders have strict terms that keep many out of their list of qualified clients.  It all starts with the bothersome paperwork that is time-consuming. Choosing a loan from direct lenders working with us is an effective solution for your urgent financial obligation.

 

Installment Loans for Bad Credit Direct Lenders

 

Requesting for installment loans from direct lenders is now simple and fast. It involves a quick navigation through the list of lenders working with us and filling out simple forms. Your lender will review your request before he approves your loan. These loans are offered for a long period and lenders work to approve them as fast as possible. They understand that you are in urgent need of cash, hence they also do not ask a lot of you.

Facts to Know

  1. Facts to Know
    Facts to Know

    Installment loans are meant to offer you a long-term repayment plan. The aim of the plan is to help you build your credit rating as well as get out of your financial crisis. When you have a good credit score, you are more likely to be offered a loan by many lenders. You will also be comfortable knowing that you can easily qualify for a loan and that you are now in control of your finances.

  2. Always note that it is not easy to just qualify for a loan. Lenders in our list look for the assurance that you are going to pay them back. You will qualify for installment loans for bad credit direct lenders but you have to pay back as scheduled. If it is your first time borrowing, that would be the opportunity to create a good credit profile with your first lender.
  3. Compared to other loans like those offered by financial institutions, these loans are more accommodating. If you have a bad credit score and you request a loan from a bank, it is likely that your request will not be approved. They do not consider your emergency as a factor in releasing a loan to you.
  4. We will connect you to certified and trusted direct lenders who will not focus on your bad credit history. They want to offer you an installment loan and assist you in dealing with your financial problem. You will be able to search and find a lender whose package works for you.
  5. Calculate the amount you need to borrow for your need. Have a specific expenditure plan and determine the exact amount of cash for it. With this in mind, you will not be tempted to request for a loan that is much more than you actually need. It will be difficult to pay a larger amount.
  6. Keep in mind that the amount you request for will be subject to interest.

What Lenders Offer

  • Loans for Bad Credit
    What Lenders Offer

    Lenders in our network will offer you different repayment options and you only need to choose a suitable one for yourself. For instance, you can a find a lender who is willing to allow you to pay the full charges and any amount you can raise towards the principal balance. This is when you are not able to pay the balance off. A lender can also charge you smaller fees which in turn mean that your balance will be reducing significantly. With a little effort, you will be able to clear your balance within a short time.

 

  • Direct lenders aim at ensuring that you can pay them back without failure. This is why they offer you more installment options. The more the installments, the smaller the amount you will be paying every month. You only need to be aware of the higher interest associated with longer installments. Before you decide to settle for any installment loans for bad credit direct lenders, ensure you clearly understand the terms.

 

  • With us, you are assured of getting in touch with lenders who will work to your advantage. They will make the process of acquiring a loan very simple. They have done the legal research for you and therefore you do not need to worry.

 

  • The lenders in our system work to meet your demands. They will be giving you an opportunity to get cash in your bank account and pay back wtih flexible terms. You will not be required to provide any form of collateral.

 

  • Very fast request processYou will be getting financial relief if you decide to seek out an installment loan from a reputable lender. Lenders already know the stress you are going through, hence they work to make your life easier. Lenders you find with us will not put any unnecessary pressure on you. You may also find a lender who is willing to let you decide the amount of installment you are comfortable repaying.

 

  • Once you received cash in your bank account, start setting up your payment plan. Know the amount you are required to pay as installment and fix that into your monthly deduction budget. Remember that you have signed up for an emergency expense and therefore you need to be careful not to forfeit other bills.

 

  • Avoid defaulting any of your payments as it will affect your credit rating. You may already be having a poor credit score and defaulting your current installments will worsen your case. Striving to stick to the payment schedule will be giving you a good chance of requesting for a loan with better terms in future.

In general, we will be linking you to the best direct lenders who offer loans to those with bad credit scores. The lenders have simple requirements that you can easily meet. They review your request quickly to ensure that you get cash fast. You will be positively impacting on your credit score when you choose installment loans from the listed lenders.

Installment Loans for Bad Credit

 

Installment loans is a type of loan that is advanced to the borrower with the lender requiring the borrower to pay the loan in scheduled repayments maybe in weeks or months depending on the lender. The loans are actually available to people with less than stellar credit history. In case you default the loan, the conventional lender will convert the asset to money and repay the loan. Many Americans are facing tough financial times. This has affected many and their credit scores have lowered considerably. It is essential to note that credit score is a measure of borrower’s credit worthiness or ability to repay a loan. Installment loans for bad credit are a solution for people with lower credit scores. If you need cash to deal with an emergency, you will have to apply for installment loans for bad credit.

You are supposed to meet the following criteria in order to qualify for a loan. These include

  1. You are not an active military personnel
  2. You have an active checking account
  3. You have a recurrent income or proof of employment.
  4. You are at least 18 years old and have a valid national identity card

Why choose installment loans for bad credit?

Why choose installment loans for bad credit?
Why choose installment loans for bad credit?

You cannot budget for financial emergencies as they usually appear unexpected. If you do not have a fully funded emergency account, you will fall into financial turmoil. Many people are depressed and they lose hope when faced with these tough conditions. However, you should not worry because we will help you get funding from reputable lenders in our network. Whether you want to pay for an emergency medical bill or need to make renovations, an installment loan is the right choice for you. The features of installment loans for bad credit include

  • You have the freedom to find a permanent financial solution without breaking your bank account balance.
  • The loan terms are tied to your income and you will be in a position to repay the loan while maintaining your regular lifestyle. You can allow your lender to deduct the amount from your bank or make the payment yourself to the bank.
  • The loan comes with fixed interest rates and the installments are spread across a period. This means that you will know what you are supposed to pay and they will not fluctuate to unexpected rates like other types of credit.

What to look for in a lender

 

  • Experience

     

 

Loans for Bad Credit
Experience

This is the most crucial aspect because you would want to deal with a person who is experienced in this field and will know how to handle different situations. The process should be seamless to allow the borrower to access the loan facility quickly and with ease. We have made our loan request process simple and you can apply for the loan in the comfort of your living room as long as you have an internet connection. You can complete the loan request form quickly and we will match you with lenders who will fund your loan. We have many lenders in our network and as long as you meet the criteria, you will get a loan.

 

  • Security

 

Security
Security

This is the most integral part for any customer or borrower. When you give us your information, we will not pass it to unauthorized parties. We have state-of-the-art data encryption software and programs which ensure that your information is safe and secure. We will never pass your information to a third party without your permission.

 

  • Simplicity

 

If you are in need of an emergency loan and do not have a financial backup, installment loans for bad credit will likely be the answer to this problem. Once you have submitted your information, we will connect you to lenders within a short period and you will be given feedback. Your lender will make you an offer based on your ability to repay the loan and the information that you have supplied at the time of application. You should go through the frequently asked questions to get a sense of how we operate and how you can make the application. If you have more questions, we are more than willing to answer the question. Call us or send us an email.

Bad credit is not a problem

Bad credit is not a problem
Bad credit is not a problem

We believe in giving borrowers an avenue to get financial solutions whenever they have problem. Every citizen is entitled to get the right credit facilities and that is lenders in our network are working round-the-clock to ensure that you get the right loan. We cannot promise that we don’t check your credit. What is mostly done is a soft credit check that is meant to check the validity of the information that you have provided. However, less than stellar credit history does not mean that you will not get a loan. As long as you meet the criteria that your lender requires, then you will get a loan. One important aspect when applying for the loan is your income status. This is an indication on how much you can afford.

  • In essence, the amount borrowed should not exceed more than 25% of your gross income. This is to allow the borrower to have breathing space and meet other financial obligations apart from repaying the loan.
  • You should read the payday lending and other legal requirements in your state to know if there are interest caps or limits.

Easy Eligibility

  • The loan request process is simple and with many lenders in our network, we believe that you will get a loan of your choice if you meet the criteria. The process is usually done online. We understand the dynamics involved in financial emergency and we are here to aid alleviate your problem. Your lender does not require you to have collateral, and once you have proven to have ability to repay the loan, you will qualify for one.
  • The last thing you want when you are looking for a loan is to land in a vicious debt cycle. We promote responsible lending and when you are borrowing money, it should not be used as a long-term financial solution. However, you can use it to deal with emergencies. Moreover, we do not charge any money during the application process. Once you have accessed our website, you can make the loan request without paying a cent. We put everything open for the client to review and make a sound decision. There are no hidden fees and catches. Contact us today for more information.

 

 

Merchant Cash Advance Financing

Running your own business gives you independence, limitless possibilities to follow your dreams and expand your horizons. It is definitely better than working for someone else, isn’t it? As good as it sounds, everything is associated with…money.  

Merchant Cash Advance Financing
Merchant Cash Advance Financing

If you are a novice entrepreneur and need additional funds to develop your plans and ideas, then you should start considering the available options. You could borrow money from a friend, a bank or another credit organization. That is the obvious and probably the simplest decision.

However, you should always think twice. There must be another way. In fact there is and it is called ‘merchant cash advance financing’.

 

Why merchant cash advance financing can be good for your business?

Why merchant cash advance financing can be good for your business?
Why merchant cash advance financing can be good for your business?

To answer that basic question, we should explain the term’s meaning. The first thing to know is that merchant cash advance is not one of those quick loans for business. As the name suggests, it is an advance based upon credit card sales or future incomes of a business. In brief, you are going to sell a part of your revenue in order to acquire the necessary capital immediately.

Compared to traditional banks, the providers of that service weigh credit criteria and evaluate risk in a different way. They determine if your business would be able to repay the advance on time by examining your credit card receipts and daily receivables.

When it comes to the annual interest rates, they are usually higher than those of small business loans. The difference may be double or even triple. What’s more, sometimes businesses that do not qualify for quick loans for business have a good chance to be approved by a merchant cash advance provider.

 

Who can benefit from merchant cash advance financing?

Who can benefit from merchant cash advance financing?
Who can benefit from merchant cash advance financing?

Merchant cash advance financing is designed for firms to obtain regular cash flow through their merchant account. In other words, the business owner should have constant credit card payments and other receivables or payment streams.

Before you proceed to action, make sure that all the terms and conditions included in the contract are clear to you. Do not forget that they can affect your potential ROI. Read the contract thoroughly and ask questions if you have any. This ensures that you are making an informed financial decision.

How does merchant cash advance financing work?

You must reach an agreement with the provider on the advance amount and the payback amount as well as the holdback percentage. Once it is done, the funds will be transferred to your business’ bank account.

You must reach an agreement with the provider on the advance amount
You must reach an agreement with the provider on the advance amount

Every day, the agreed upon holdback percentage of the credit card receipts and daily incomes will be withheld to repay advance. That will continue until the amount is repaid in full. You will have access to your merchant account which removes the need for collateral which is required for small business loans.

The repayment amount depends on the daily balance in your business account. So, the more transactions your business does per day, the faster you will be able to pay back the advance. The draw will be relevant to your incoming deposits into your merchant account. Even in times of slow business, there is nothing to worry about – the amount will be less.

About the costs

If you use merchant cash advance financing, then you are probably going to pay back between 20% and 40% of the advance amount. That percentage is the so-called factor rate which is equivalent to 1.20-1.40. Holdback rates are normally in the range 10%-20%. Both may vary depending on the merchant cash provider.

About the costs
About the costs

Remember that the holdback amount which your business will pay on a daily basis is not the same as the repayment for the entire amount borrowed. You must understand the distinction. For example, you may have a holdback of 15% and a repayment of 30%. It means that if you have an advance of
$10 000 and your factor rate is 1.30, then you will have to pay back $13 000. Until that amount is collected, your merchant account will be withheld with 15% of the credit card sales or revenues. If that is about $14 500 monthly, then you will have to give back $2160. In this case, the merchant cash advance would be repaid in almost six months.

The holdback percentage is based on three main factors: the overall advance amount your business gets, length of the period of repayment and size of the receivables per month.

How to request?

How to apply?
How to apply?

Since merchant cash advance financing is not a traditional loan, the application process is not complicated and the approval is faster. Here are the usual steps you will have to take:

  • Apply for the advance by writing two pages of data about your business. That could be business tax ID and your social security number, etc.
  • Provide bank statements and any other documents showing payments or credit card processing information for several months
  • Get your application approved. That usually happens within 24 hours.
  • Switch to a new credit card processor if your provider requires it. That may seem as a complicated but some providers of merchant cash advance financing require it.
  • Finalize the details – make sure that you know when the whole procedure begins. It could be the very next business day.
  • Receive the money – the merchant cash advance will be deposited into your merchant account. The repayment is going to be an automatic process.

Keep in mind that merchant cash advance financing will not have any effect on your credit history. So it will not help you build business credit rate. That is the main reason why some people prefer using small business loans. They are easily accessible online and offer many of the conveniences of merchant cash advance financing. Both options have their pros and cons – choose the one which would be more useful for you and your business!

What Are Merchant Cash Advances

These days, many people are having trouble with their finances and find it hard to sustain a stable financial situation. The month-to-month struggle with regular payment and emergency bills are not something only individuals have to face. Nowadays, there are many small businesses that go through tough times on a regular basis.

merchant cash advance may just be the right solution for your problems
merchant cash advance may just be the right solution for your problems

When a small business owner has trouble paying his employees, not to mention when he wants to expand that business but simply does not have enough funds to do so, usually the only way to keep the business running and growing is by taking out some form of financial assistance. For many small business owners out there, there is one specific type of funding that stands out and that is merchant cash advance.

If you own a small business and you are going through a tough financial period, taking out a merchant cash advance may just be the right solution for your problems. Whenever a financial decision has to be made, the knowledge you have of your options is essential. This is why in order to make your life a bit easier, we are going to explain what a merchant cash advance is and how it can benefit your small business. So if a time for it comes, you will have better judgment of whether a merchant cash advance is the answer to your financial troubles or not.

What is a merchant cash advance?

Merchant cash advances, also referred to as credit card funding
Merchant cash advances, also referred to as credit card funding

Merchant cash advances, also referred to as credit card funding, are one of the most popular financial funding tools for funding small businesses. Normally, a merchant cash advance is a quick, simple and very efficient way to breathe life into your small business. In order to be eligible for a merchant cash advance, your small business should have a credit card sales volume that is rather easy to predict. Every merchant cash advance company is going to offer you different merchant cash advance terms. However, with each merchant cash advance company, these terms will be mainly dependent on how stable your credit card sales volume is.

Normally, the process of merchant cash advance funding goes like this: the merchant cash advance company purchases a fixed sum of your future credit card receipts at a certain discount. After that, the merchant cash advance company grants you a loan in an amount that usually can go up to $170,000. Then the merchant cash advance company gets a percentage of your future credit card sales. The percentage that the merchant cash advance company takes must be fixed.

Before deciding on a merchant cash advance, it is always going to be better if you do research
Before deciding on a merchant cash advance, it is always going to be better if you do research

The merchant cash advance company is going to receive that percentage of your credit card sales until the merchant cash advance is fully repaid. Before deciding on a merchant cash advance company to work with, it is always going to be better if you do research, make a list of different merchant cash advance companies that more or less are offering terms that fit your specific financial situation, and narrow down that list until you pick the best merchant cash advance provider.

Once you have chosen a merchant cash advance provider to work with, you will have to go through the merchant cash advance application process. The application process for a merchant cash advance is fairly fast, as it would normally take no more than two weeks to go through the whole process. Other thing you should know about merchant cash advances and the companies that provide this service is that many merchant cash advance companies do not care and have no say in the exact ways you are going to spend the money that you are getting from them.

And since you are the person who knows best the situation of your small business is in, you will be able to fund it exactly as you deem fit. While it is true that a merchant cash advance can usually be more expensive than some of the alternatives that small business owners can choose from, a merchant cash advance is most likely the service that can get your small business going in no time and also give it the opportunity to gain momentum and continue its development.

Advantages of merchant cash advances

If you still have not made up your mind on whether a merchant cash advance is the right solution for your financial struggles, here are some advantages that merchant cash advances have to offer:

 

  • The service is really fast compared to other funding methods for small business

the service is really fast
the service is really fast

Much like with some small business loans or credit lines, when you decide to apply for a merchant cash advance, the whole process normally does not take more than a couple of weeks. Adding to that, you have the option to go through the whole process online. That means that you may be able to get hold of the funds you need without even having to leave the comfort of your home.

  • Having a stellar credit score is not an absolute requirement

If you have tried taking out a business loan from a traditional loan lending institution in the past, you would know that getting such loan is usually only possible if your credit score is perfect or close to perfect. With merchant cash advances, the situation is a bit different. The companies that provide this service are not really that interested in the state of your credit score, but rather in your ability to pay back the loan they are going to give you based mainly on your credit card sales and their consistency. Having said that, you should keep in mind that using a merchant cash advance will not really help in building your credit. The reason is that many merchant cash advance companies do not send any reports to the credit bureaus.

Merchant Cash Advance Loans

Merchant cash advance loans have become very popular over the last few years. These merchant cash advances are known to be easy, accessible and a fast way to provide finance for a small business, especially if banks or other financial institutions would not lend money to them for various reasons.

Merchant Cash Advance is not a loan

Merchant cash advances
Merchant cash advances

Although a form of a short-term financing for the small business, merchant cash advance loan is not  typical credit. It was initially designed to be a prepayment financial solution where the lender provides a certain amount of money against the obligation of paying a portion of future credit and debit cards sales of the small business. Because of the convenience offered – operable money instantly against deductible portion of every sale on daily basis, the merchant cash advance has quickly evolved into a less complicated tool to fund your small business.

Traditional loans usually provide financing with a longer term of repayment and they require more paperwork. The company should also have a solid background, be in good standing and secure the  loan with proper collateral. After all documents are gathered and provided, approval of banks may take a while. Small businesses are often unable to meet such standards. Merchant cash advance, on the other hand, is an efficient way to obtain the required funds only against the obligation to pay a small portion of your everyday sales (8% to 13-15 %, depending on the provider) for a shorter period (typically up to 24 months). The repayment is arranged through the processor of the credit or debit cards payments. Because it is done daily, there is no need to have a stable cash reserve on maturity date or worry about pay dates and penalties. The remittances of the small business are collected directly by that processor day by day until the merchant cash advance is fully paid up. The repayment starts almost immediately. There is faster access to the much needed capital and there isn’t the pressure of having to make regular installments make the merchant cash advances the preferred choice for small business financing.

Personal credit score would not be considered.

faster access to the much needed capital
faster access to the much needed capital

The very structure of the merchant cash advances significantly differs from traditional loans and therefore the merchant cash advances are not considered as such. They depend on future sales and for that reason, the business should have steady credit and debit card sales. The sales volumes are analyzed by the potential provider of the merchant cash advance and the assessment would determine how much a business could get in the cash advance. It may be between 80% and 150% depending on past sales flow and the policy of the merchant cash advance provider. Personal credit score would not be considered. If your small business has reliable sales history and a predictable volume of credit cards sales for a certain period, you should have no problem of receiving upfront funding.

Besides, easy accessibility is another advantage of merchant cash advances. The merchant is given greater freedom in operation of his income regardless of whether sales is slow or good.

Ways of repayment of Merchant Cash Advance

Ways of repayment of Merchant cash advance loans
Ways of repayment of Merchant cash advance loans

There are two usual ways of repayment. The first one is the most popular and favored. The deduction is done by the processor of card payments and the income is immediately split between the merchant and the advance cash provider. The second option requires for all profit from credit cards sales to go into a special account and the split is done after that (not very popular due to time required for both sides to receive their portion). In the second option, the account is debited on daily basis again – it just takes longer to process.

 

How much does it cost to repay the Merchant Cash Advance Loans?

How much does it cost
How much does it cost

Being as easy as it sounds, this type of financing is relatively more expensive than a bank loan. The granted amounts are to be repaid in 9-10 %, up to 50%. Of course, due to the daily deductions, business would not feel the burden of repayment so heavily if sales run well.

Advantages and Risks

But merchant cash advances have both advantages and disadvantages. If your company suffers from slow payers, this could end up being a problem. High profit margins would allow you to benefit from the repayment methods and keep and earning, while the other way around may temporarily freeze your profit as it is deducted to cover your debt. Careful consideration of your sales and knowing where your small business stands would help you avoid that risk.

Merchant cash advance is offered by companies specialized in this type of funding. Not being a loan under the law allows much flexibility. There is no restriction as to how much your interest rate could be (could be negative at times) and there is no restriction on how you could use your upfront funds (positive). It should be noted that this type of financing is designed mainly for small businesses with steady sales that could easily pay off the debt in the short term given.

Merchant cash advance providers reserve their right to adjust their offers. So it is a type of debt that carries both risks and benefits.  

Business Merchant Cash Advance

Business Merchant Cash Advance
Business Merchant Cash Advance

At first glance, the concept of merchant cash advance sounds noble and overly-generous. Someone may even look at the promises of various merchant cash advance companies as dangerously close to those of dubious enterprises that sell services such as 100% secure loans or 100% guaranteed loan match. The idea is that the legal enterprises known as MCA (merchant cash advance) companies loan finances businesses that cannot qualify for bank credit.

The creditor then gets his money back by receiving a pre-arranged portion of the subsequent sales that the merchant carries out. The borrowers who benefit from merchant cash advance loans the most are predominantly small businesses, startups with small cash flows, and businesses with bad credit scores. And while this is an option that undoubtedly sounds appealing, the coin has two sides and merchant cash advance, like many other financial tools, can sometimes be a double-edged sword for the debtor.

How does a business merchant cash advance work?

How does a business merchant cash advance work?
How does a business merchant cash advance work?

The mechanism behind merchant cash advance is relatively simple. We can use the example of a small local bookshop that desperately needs to raise $15,000. Unfortunately the owner is unable to apply for a business credit since the bookstore is brand new and he cannot afford to put up a collateral. As an alternative, he turns to the services of a company that offers merchant cash advance loans. The MCA company decides to make a lump-sum payment to the applicant in exchange for $18,000 from his future credit card sales.

Note that the company does not give the bookstore a specific period of time in which it should return the debt. Instead, they calculate a percentage of the future customer credit card payments and this percentage is to be transferred from the bookstore to the MCA company until the advance is fully repaid. Whether the payment is to be made on daily, weekly, or monthly basis depends on the arrangement between the bookstore and the merchant cash advance firm.

So instead of setting a fixed payment term, the MCA company collects the agreed portion of credit card sales until they get their funds, plus the interest back. Typically, this happens within a time span shorter than 12 months. However, there is the exception where the businesses do not go as well as planned and the advance turns into an inescapable burden that keeps draining the merchant’s cash flow. Having your business not go exactly as planned is just one of the many considerations that should be taken into account before rushing into the doors of the nearest MCA firm.

Disadvantages of a merchant cash advance

Disadvantages of a merchant cash advance
Disadvantages of a merchant cash advance

Times of financial instability and credit crises are when the business of merchant cash advance business usually booms. What happens is that in an environment where credit terms become more unappealing for small businesses and banks tighten their loan regulations, entrepreneurs in need of a quick financial boost readily embrace the idea of merchant cash advances. Unfortunately, in their enthusiasm, a lot of them choose to turn a blind eye to the possible negative impacts that a financial strategy like ould have on their business.

The devil is in the detail. In the case of merchant advance loans, the devil is in how this type of cash advance is treated by the law. The catch is that, although a merchant cash advance sounds strikingly similar to a typical banking loan with just slightly unorthodox payment terms, it is actually not a loan. From a legal perspective, that is. Instead of business credit, the merchant cash advance is considered a sale of future debit/card sales, or more simply put, a sale of future income with interest attached to it. What this means for the firms that offer merchant cash advance for small business is that they function in an area that is considerably unregulated.

Therefore, in setting the terms and interest rates on their lump-sum payments to merchants, the MCA companies do not have to abide by any kind of usury laws. As a result, the interest rates in the industry can triple the usual interest rate charged by, for example, credit card companies. A situation where the merchant has to pay 50% over the borrowed sum in exchange for the MCA service is not something unusual. Since they are not bound by government’s laws that limit interest rates, merchant cash advance enterprises are free to operate in whichever way they deem fit. History has shown that it is always going to be small business owners with insufficient equity as well as businesses with poor credit history that would desperately use the financial stimulus. Those who are considering taking out a merchant cash advance loan should think twice before signing up for one.

What you need to know about merchant cash advances

What you need to know about merchant cash advances
What you need to know about merchant cash advances

In conclusion, merchant cash advance loans are definitely not everybody’s cup of tea. Although the service may initially look tempting for small business owners, there are a lot of things that should be taken into account.

One of the most important is the fact that small businesses usually operate with small cash flows. And since MCA companies take their percentage off the merchant’s cash flow, the abnormally high interest rates that they charge compared to other forms of financial credit services may end up doing more harm than good for the business. So, if you have decided that the merchant cash advance loan is a good financing option for you, be sure to do your homework. Always insist that the MCA firm gives you an estimated A.P.R. for your merchant cash advance. Always familiarize yourself with the payment terms. And always explore as many merchant cash advance companies as possible before making the final decision.   

 

Best merchant cash advance companies in the market ranked (As of February 2017)

  1. On the top of the ranking in our list of best merchant cash advance companies is Aliant Payment systems. It is based in Fort Lauderdale, Florida and established in 2003. Its revenue estimates about $3 to $5 million. There are 150 full-time working employees and more than 5000 active clients. Its client retention rate is 95%. Major clients include Taylor’s Closet, Broward Education Foundation, Unforgettable Prom Foundation, Inc., among others. Other services they offer are ATM and credit services. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 100%.BankCard USA
  2.   Second place is for BankCard USA. It is based in Agoura Hills in BankCard USA California, and it was established in 1998. Its revenue estimates about $1 to $3 million. There are 332 full-time working employees and more than 20,000 active clients. Its client retention rate is 96%. Major clients include Lunaria Music and also Supertone Hearing and Coastal Dermatology among others. Another service they offer is Payment Getaway. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 99.6%.
  3. The third place is for Credit Card Processing Specialists. The company is based in Grandville, Michigan and it was established in 2010. Its revenue estimates from $250,000 to $1 million. There are 30 full-time working employees and more than 1000 active clients. Its client retention rate is 98%. Major clients include Main Street Technologies and South Central Pallets, also Discovery Network, Advance Auto Parts, and Ace Hardware, among others. Other services they offer are credit card services. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 99.2%.ForwardLine Financial
  4. ForwardLine Financial – Fourth on the list is ForwardLine Finnncial. It is based in Woodland Hills in California and it was established in 2003. Its revenue estimates about $1 to $3 million. There are 12 full-time working employees and more than 50 active clients. Its client retention rate is 95%. Major clients include Leisure Lifestyles and The Color Studio & Salon, National Park Village & The Country Supermarket, and also Pepper Palace, among others. Another service they offer is payment getaway. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 98.8%.
  5.   Next on the list is Maverick Capital. It is based in Agoura Hills in California, and it was established in 2000. Its revenue estimates about $3 to $5 million. There are 30 full-time working employees and 153 active clients. Its client retention rate is 98%. Its major clients’ list is confidential. Another service they offer is providing loans for small businesses. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 98.4%.
    FastCapital 360
  6. The sixth place is for FastCapital 360. It is based in Southampton, Pennsylvania and it was established in 2009. Its revenue estimates more than $10 million. There are 120 full-time working employees and 3500 active clients. Its client retention rate is 95%. Its major clients’ list is confidential. Another service they offer is providing loans for small businesses. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 98%.
  7. Next is the United Payment Services. It is based in Newbury Park in California and it was established in 1998. Its revenue estimates more than $10 million. There are more than 50 full-time working employees and more than 10,000 active clients. Its client retention rate is 97%. Major clients include Arinc, La Brea Bakery, Rockwell Collins, Otis Spunkmeyer, and even IBM, among others. They also offer credit card services. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 97.8%.
  8. The eight place is for Merchantcash.com, based in Tampa, Florida and established in 1999. Its revenue estimates about $250,000 – $1 million. There are 12 full-time working employees and 24 active clients. Its client retention rate is 88%. Major clients are confidential. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 97.6%.
  9. Ninth is Advanced Merchant Services. It is based in Jacksonville, Florida and it was established in 2007. Its revenue estimates about $1 to $3 million. There are 29 full-time working employees and more than 200 active clients. Its client retention rate is 93%. Their major clients’ list is available only upon request. They also offer check processing as an additional service. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 97.2%.
    RedFynn
  10. Next on the list is RedFynn. It is based in Thousand Oaks in California and it was established in 2002. Its revenue estimates more than $10 million. There are 400 full-time working employees and more than 153,000 active clients. Its client retention rate is 99%. Their major clients’ list is confidential. Other services they offer are credit card services. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 97%.
  11.  Eleventh on the list is Direct Capital Corporation. It is based in Portsmouth in New Hampshire and it was established in 1993. Its revenue estimates about $5 to $10 million. There are 253 full-time working employees and more than 1000 active clients. Its client retention rate is 92%. Major clients include Georgetown Group and HDT, Wooden Ships, Incorporated and also Infrastructure Insights, Incorporated and Wild Pets, among others. Other services they offer include equipment leasing. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 96.6%.
  12. Next is Yellowstone Capital. It is based in New York, the State of New York and it is in the merchant cash advance business since its establishment in 2009. Its revenue estimates from $250,000 to $1 million. There are 43 full time employees and more than 50 active clients. Its client retention rate is 95%. Some of their major clients are Riverland LD&S, Incorporated, Raydar & Associates, Incorporated, Revenue Systems Incorporated and also Charlotte Family Yoga Center,  among others. They also offer credit card services. Based on their rates, efficiency, security, customer support and calculation methods, their overall score is 96.2%.

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