To start your own business, you need a great idea, solid business plan and money to get your idea off the ground. There are many options that your business has when it comes to getting the money it needs, but merchant services loans might be the best way to get the money needed. Why should a new business consider this type of loan?

Easy To Get

Merchant services loans are a cash advance for businesses that have little to no credit history, or have credit issues in the past. Most applications are going to be approved, which is good when you have to make payroll, or you want to spend more money marketing your product. Spend more time worrying about marketing your company and less time worrying about how your credit could potentially hold you back.

Unsecured Loan

The best part of getting this type of loan is that you do not have to put up any collateral. Whenever a loan is tied to an asset, it can be harder to get out of the loan should anything happen. This is because your creditor can simply seize the asset and sell it off for the cash. When you get a merchant loan, you get the benefit of an unsecured loan without having to have the higher credit score that is usually required to have your loan be unsecured.

No Set Loan Repayments

One of the more flexible features of a merchant loan is that you don’t have any set repayment terms to deal with. You pay the money back as your revenues grow, so you don’t feel pressured to make payments before your company is ready to pay back loans. Taking larger orders, and generating more revenue, can be difficult if your business is lacking the money to do so. If your company is new and growing, this can be a great way to grow your business while being able to focus on your company instead of your finances.

Your business needs time and money to grow into the best company it can be. When you know you have a source of working capital that can fit your needs and allow your company to pay its obligations on time, it will become a stronger company in the long run. Over time, as the company obtains a longer credit history and more positive credit history, it will qualify for more traditional financing. However, a merchant service loan can be a great option until that point is reached.

Credit card processing accounts allow businesses to accept credit cards for payment against goods and services. Usually, the merchant accepts the credit card payment through his or her point of sales device and is funded by the credit card processing company, usually by the next business day. However, if a business owner determines that he or she needs a loan in order to expand the business or cover current operating costs and does not qualify for a traditional business loan product, he or she can get a credit card processing loan.

Credit card processing loans allows a business owner access to a lump sum of cash in exchange for future credit card processing deposits. In a sense, this is not a traditional loan product, but a cash advance type arrangement. Here’s how it works:

• A business owner who accepts credit card payments in their business locates and applies for a credit card processing loan through a credit card processing lender.
• He or she receives approval for the loan, which is based on monthly credit card processing volume instead of traditional credit underwriting guidelines such as credit history and score.
• The proceeds of the loan are direct deposited into the business’s checking account, usually in 72 hours or less.
• The loan is repaid with future credit card processing deposits

In most cases, there is no fixed repayment term, official loan payment due dates, or even payment amounts. The lender accepts a percentage of your daily credit card sales as payment against the loan until the principle balance plus interest and fees are paid.

There are several benefits to getting a credit card processing loan over a traditional bank loan. These include:
• Easy qualification terms. Most credit card processing loans do not require a business to meet specific credit guidelines with the exception of unresolved bankruptcies.
• Fast access to the cash. In most cases, approval for the loan occurs within 24-48 hours and funding occurs anywhere from 3-5 days from the date of application.
• There is no collateral required-this means that the business owner does not have to pledge any personal property against the loan to reduce the risk of default. However, he or she will have to pledge future sales against the loan to ensure repayment.
• In most cases, the loans are automatically eligible for renewal after repayment. This means that if you find that you need additional working capital, you can take out a new loan the day after your existing loan is repaid.

In order to qualify for a loan, you will have to meet a few certain criteria. These include:
• Your business will need to have been established for a minimum of 4-6 months prior to applying
• You will need to accept credit cards in your business for payment
• Your monthly credit card volume will need to meet the lender’s minimum requirements, usually $3500 to $5000 in monthly volume
• Some lenders will require that you have some documentation that supports you will remain in business for at least a year from the date of your application, such as a business lease.

These criteria may exclude some businesses from being able to obtain such a loan, however the relatively loose underwriting criteria means that most applicants will have access to the money they need to keep their businesses going. Your loan amount will depend on your monthly credit card processing volume, meaning that the more you process, the more you will be eligible for. However, new customers should expect their loan terms to be somewhat lower than a returning customer.

The Holidays are once again upon us.  Black Friday has come and gone and many business owners are in full-on “get through the holidays” mode.  With millions of Americans hitting the street and the computer looking for the perfect gifts for loved ones, business owners have a lot to worry about at this time of year.  “Do I have enough inventory?” “Am I properly staffed to handle the excess business?” “Have I done enough advertising to draw the holiday crowds to my business?”

There are different concerns for different business owners, but one thing is for certain, most concerns in the minds of business owners involve spending money to make money.  That’s where we come in.  The holiday season is the most important time to secure funding for your business because it’s money that can be used to bolster your holiday season (pulling in more profits) or money to have in reserve for when the holidays are over and business slows down to a crawl again.

It’s funny how American commerce has evolved over the years to have this one month of absolute consumer insanity followed by a near pause in the spending of most American consumers in January and February.  And moreover, many business owners resist the temptation of taking cash at this time believing if they need some cash flow help in january, they will be able to get it when business slows down.  Unfortunately, most lenders are reluctant to lend in January due to a concern with the lull in business making it more difficult to secure funding after the holidays.

So it’s encouraged to sure up any funding you may think you need before the holidays are over.  Now is the time to take out a line of credit, or a business cash advance, or a small business loan to make a final push for the holidays or prepare for the post-holiday lull.  Sure Payment Solutions understands what business owners go through during this time and we are here to help make sure you never have to worry about the ups and downs of business.  Simply fill out a form on this website or call us today at (800) 991-3917.