One of the biggest challenges businesses face is acquiring funding: whether they need cash for, inventory; payroll; equipment…; getting cash can be difficult. But what about if you are a relatively new business with no credit history; or unfortunately have a credit history that is bad… then what? how do you get the money you need. In situations like these, banks, and other lenders are likely to turn you down because of the apparent risk you present them in lending you money: either you have no credibility, or you have shown that you have difficulty paying back money. Where to turn? Some people may think that payday loans are the only way to go, and they may offer a solution but there is another option. Possibly one of the most unrecognized forms of financing for businesses is something called a merchant cash advance; and they may be the answer you were looking for.
Unlike a typical cash advance, a merchant cash advance does not structure its repayments on interest. Instead, the agreement is established by the financer buying a portion of your future revenue at a fixed cost to then advance you the cash you apply for; then over the course of the agreement you are expected to pay back that money. This offers a great advantage: your payments are fixed at a given point: meaning that you do not have to worry about interest accruing over time on money owed; so if your business is going through a slow-patch there will be no need to worry about increases to your repayment. In fact, depending on the financer, they may even offer different options on how you can repay your advance.
There is an issue to be aware of though: cost. Merchant cash advances can be more costly than conventional financing; and the reason is because of the risk the financer takes on in giving money to people who have poor credibility. But, not all merchant cash financers are the same: each can offer different financing structures; and also structure repayment terms differently.
A name that we at INKAS® Payments commonly hear mentioned when we talk to our customers is Canadian-based 2M7 Financial Solutions. And when their name comes up two things generally stand out about why these customers, not only went to them for help, but also why they keep going back to them when things get “tight.” According to these INKAS’s customers, 2M7 was able to offer them multiple financing options to suit their business: each of which involved no accruing interest; the other being the flexible repayment expectations they were offered when things got tough for them. So there seems to be a “helping hand” out there.
But do your research; 2M7 is just the name we have come to recognize the most because we hear about them so often. There are other merchant cash advancers to choose from. Consider visiting their website; give them a call; see who will work for you. Choosing an alternative financer is not something that should be taken lightly given their costs; so you want to make sure whoever you do business with has your best interest in mind. This is something that motivated this post: INKAS® Payments wants to make sure business owners thrive, because they are the life of our business: without them we would not be around: we appreciate all they allow us to do. And this is why we continue to post this great content, so they can get “tips and tricks” to grow their business; so be sure to hit that subscribe button, to stay “in the loop.”