Merchant Cash Advances Provide Capital to Medical & Dental Professionals

During this period of tight credit, medical and dental providers are having a difficult time getting the working capital they need to grow or even maintain their practice.  Establishing a merchant cash advance program is an easy way to accelerate cash flow, which can be used to expand or remodel, pay emergency expenses, or just … Continue reading “Merchant Cash Advances Provide Capital to Medical & Dental Professionals”

During this period of tight credit, medical and dental providers are having a difficult time getting the working capital they need to grow or even maintain their practice.  Establishing a merchant cash advance program is an easy way to accelerate cash flow, which can be used to expand or remodel, pay emergency expenses, or just pay bills in a timely manner.

With merchant cash advances for medical or dental professionals, a poor credit score or lack of historical profits usually doesn’t keep the provider from being disqualified.  This form of financing is based upon the provider’s MasterCard and Visa receipts.  The financing source funds  the future credit card sales of the provider at a discounted rate and provides upfront cash based upon those estimated monthly receipts.  Payback of the loan is through the credit card receipts in subsequent months. This is done electronically. When a patient makes a payment, a pre-determined percentage of the amount is sent to the funding source. The usual amount of time to pay back the loan is seven or eight months, but some funding sources will allow for a longer payback.  The original amount the credit line is the average monthly credit card receipts for the practice, clinic, or hospital, but can be expanded as business grows after 60% of the original loan has been paid back.

Because the payback is done electronically, most funding sources require the medical or dental provider to switch their credit card processor to the one they use.  This can often be a benefit, as the merchant advance company is able to get excellent rates due to the volume they run.

Benefits of utilizing merchant cash advances

  • Most cash advances are unsecured,  so no collateral needs to be pledged
  • Cash proceeds can be available as soon as 10 days
  • Unlike a bank loan, payback is variable based upon credit card sales, so cash flow is not strained
  • No personal guaranty is required
  • Applying is easy, with a simple application and the past 4 months credit card statements needed

For medical and dental practitioners, merchant cash advances providers an easy and fast way to bolster cash flow needed to sustain or grow a practice.

Business Cash Advance For Merchants

It is not unusual to see merchants who seem to be quite satisfied with the sales they are able to generate. However, beyond the good sales performance that they might have, many of them are facing problems with their finances. Whether it is to make repairs on their shops or to expand to a new product or service line or may it be to purchase additional supplies, many of them need to have easy access to additional capital. You might think that they can simply apply for a small business loan but it is not always that they can qualify for one. This is why many of them resort to other financing options, like a business cash advance.

Also referred to as a merchant cash advance, a business cash advance can provide merchants the additional capital they need without the hassle that is often associated with applying for a small business loan. Through this kind of financing option, merchants no longer need to worry about the business credit ratings. There are even some financing institutions that are not strict on the documents that merchants have. Generally, what they are looking at is the average monthly credit card sales volume that merchants are able to generate.

With a merchant cash advance, merchants no longer need to wait for weeks and weeks on end just to get their application approved. Some providers can give merchants access to additional capital in as fast as two weeks. To someone who is in need of additional funds, this already means much.

Most merchants these days prefer getting a business cash advance instead of applying for traditional small business loans. They have several reasons for doing so and one of them is the more lenient payment schedules. Most providers allow repayment of the amount owed through cutting a small percentage from the monthly credit sales of merchants. This can prove to be way lighter than having to come up with a large sum of money on a specific day of the month.

There are several other options for merchant capital financing. Learning more about them can truly be to your advantage. And in doing so, you will not easily give up on your business during the most trying days, especially if you know there is a firm that you can turn to for a merchant cash advance. So if you have run out of much needed capital, try to approach a financing firm about this kind of option.

What Is Franchise Financing?

Franchise financing is the process where a specialist franchise loan origination agency is set-up to address the exact needs of a franchise industry. Most people have recently realized that a franchise is the way to get into business and after finding the best franchise opportunity, some questions arise which are; where to get the working capital, money for financing the franchise and the royalty fees.

It is highly recommended for one to determine his or her net worth, by using a personal balance sheet for listing their assets and liabilities, since most franchise financing lenders will look at various things before financing a franchise business. Mainly they will be interested to know how long you have been working in a certain job or the time you have lived in that location and the records about what you started. Ideally, most lenders look at your income and how you live within that range, since if one cannot manage personal finances it means one cannot manage business finances. Lenders offer services such as; working capital, merchant cash advance; equipment leasing, business and franchise financing.

Equipment leasing is of importance since it allows companies to improve their money positions by equalizing the high costs of business financing. This will help them maintain a strong cash position in the economy and also helps the company to gain tax benefits which improve its flexibility and efficiency that allows companies to renovate there equipment and machines. Leasing equipment also helps in the improvement of cash flow which allows them to limit how much and how often they borrow cash for financing their operations thus reducing their financing costs.

The most essential component for a business to start is the working capital; it covers both operating expenses and upcoming debt payments. Generally, most companies cover a short-term working capital need, which is based on their expected credit card transactions; this form of finance is known as merchant financing. Merchant cash advance involves certain credit card qualifications that a lender requires companies to obtain in order to qualify for an upfront working capital. Other than quick application, merchant cash advance also has other merits like low amount of documentation, that is, one does not require accounting records or business plans in order to secure a loan. It also does not require companies to have collateral, which helps in the reduction of risks to corporate assets.

In conclusion franchise financing helps most dream ideas to come into reality.