Getting a Merchant Cash Advance Loan for your business means getting a lump sum payment today by handing over a sizeable portion of your future credit card revenue. For many businesses, this is a considerable part of cash flow and can put a strain on the business and the business owner. Merchant Cash Advance Loans ...

Getting a Merchant Cash Advance Loan for your business means getting a lump sum payment today by handing over a sizeable portion of your future credit card revenue. For many businesses, this is a considerable part of cash flow and can put a strain on the business and the business owner.

Merchant Cash Advance Loans has helped some businesses but have hurt some as well. Why? In the need for money today, business owners as optimistic as they are, will forgo future monthly revenue by giving up rights to their credit card receivables – and those monthly loan charges can account for a large portion of credit card receivables. Pitched as a “partnership” by not requiring fixed payments, the collections made each month on credit card receivables are adjustable and difficult to manage. Simply the more you’re able to get ahead by making more money, the more money will be taken from your credit card receivables. For many business owners, this unpredictable loan repayment schedule is just no way to run a business. Up until now, Merchant Cash Advance Loans were loans of last resort. Today, business owners have a new option when they need a Business Loan – Collateral Lending.

Collateral Lending is an Asset Backed Loan. It’s simple to understand and easy to qualify for. An asset is pledged for a short term loan, you receive your money and you keep your credit card receivables. One of the great characteristics of a Collateral Loan is that during the term of the loan, no payments are due – no interest payments, no principal payments. At the end of the term both interest and principal payments are due. What does this mean to the business owner? 100% of the loan proceeds can be used for any purpose and with no payments due during the term of the loan, there’s more money left over each month. Use that extra money for – advertising, expansion, inventory, equipment, or for any reason you see fit.

Collateral Based Lending can help business owners grow their businesses or help get them through tough business cycles. What is best for you? Merchant Cash Advance Loan or Collateral Loan?