What is Capital Funding?
Working capital funding allows you to continue your daily operations should you encounter untimely cash flow gaps, seasonal lulls or need to finance new equipment. By utilizing working capital funding, you can invest in your business so that you can ultimately cover your operating expenses.
It can be challenging for small businesses to obtain loans for working capital from traditional lenders who typically require extensive collateral or other guarantees that the money will be repaid. In addition, it is becoming more common for traditional lenders to require substantial personal guarantees, such as the business owner’s home or other highly valuable collateral.
While there are many different ways to receive capital funding for your business, a popular alternative to small business loans is getting a Merchant Cash Advance. Merchant Cash Advances are hassle-free and fast. Businesses who would be caught in the red tape associated with traditional loans, often get approvals within 72 hours of a request with a Merchant Cash Advance provider. Because there are no checks to write, and the money is paid back at every Point of Sale automatically, there is no concerning yourself with late fees. In addition, there are no fixed payments, late fees, hidden fees or interests. That means the agreed upon loan will never change percentage, and there will be no surprises. Because there is no collateral for the amount of the loan, the only side that takes a risk, is the Merchant Cash Advance Company. If your business is having a great day you can pay the balance off quickly. If your business is having a slow day, you are not penalized. The percentage always remains the same, and the amount differs based on your sales. Perhaps one of the most important aspects in today’s society, where your credit score can make or break you, Merchant Cash Advance companies do not appear on your credit report. To summarize, with the absence of guarantees, collateral, and equity, Merchant Cash Advances are a risk-free solution to your monetary needs.
With this funding option, your business can stay on track and meet goals, or you can use the money to grow your business in anyway you see fit. Having the capital for you business allows you to keep your options flexible.