The government is trying to find a way for small businesses to get working capital loans. However, many companies know it is tough to obtain working capital in today’s economic climate. Many retail businesses are forced to take out a merchant cash advance at a high-interest rate to grow or stay afloat.
These advances are often marketed by credit card processing firms and are not business loans. This is why the laws that govern maximum interest rates do not apply to such advances. Factor, or interest rates, on Merchant Cash advances can be as high as 50%. This is in addition to the requirement to change credit card processors and buy equipment. These advances often come with high upfront fees and the uncertainty that the interest rate or factor can change at any moment during the repayment period.
Retail merchants now have a new option to get the working capital loans they need to grow or survive. The new method of acquiring capital is marked by some key points that make it much more affordable for most merchants. These are some of the issues:
- Approvals for loans with a lower factor (or interest rate) of 50-80% than a merchant cash advance
- Scores as low as 550 for owner credit
- There are no upfront fees, no need to change processors, and no equipment to purchase.
- Maximum loan amounts of $500,000
- A good business loan builds credit history and is not like cash advances.
- Preapprovals within 48 hours, funding in 7-10 days
This working capital loan for businesses is now available in the United States. It is specifically designed to help retail merchants relieve the financial burden of cash advances. Find out more by clicking the link below.
Neal Coxworth, an entrepreneur, is a veteran of 17 years in the consumer credit industry. He has experience processing consumer, student, and mortgage loans and underwriting them. A blog he writes for consumers provides insight and analysis on all major loan types and other topics like credit history that most consumers will encounter.
TO FIND OUT MORE ON HOW TO OBTAIN LOWER-COST BUSINESS WORKING CAPITAL LOANS, CLICK BELOW:
