When money is needed, there are many different ways to go about things. With so many different options, it’s hard to completely understand them all before making a decision.
A merchant cash advance, which is offered by companies such as Radium2 Capital, is a growing option for many to consider. However, there is still a lot of unknown about what people should expect. Here are five common questions asked about this funding option that many people have before jumping in.
Who is eligible for a merchant cash advance?
Businesses must accept credit and debit card payments to be eligible for a merchant cash advance. More often than not, there is a minimum amount of money a company must be bringing in to qualify. Most companies offering the advance also need proof that a company has been around for at least a few months, so that they can properly protect themselves against losing out on a deal. All of these factors are considered when applying for a certain amount of money at once.
Is there an interest rate involved with a merchant cash advance?
A merchant cash advance is an alternative to a loan. The advance is against a business asset. There is a set fee depending on how much money is needed, the business is history and more. Therefore, a person will not be paying any type of traditional interest rate.
How is repayment taken care of with a merchant cash advance?
There is a set deduction taken from every credit or debit card sale to help pay back the advance. This means there is no set repayment plan that a business owner must stick to. If a business is doing well, more money is paid back, and it takes a shorter amount of time to fully pay off the advance. If it is a struggling time, in the beginning, it will take longer for full repayment.
Does it take a long time to get money from a merchant cash advance?
Filling out a form and getting everything squared away usually takes very little time. To actually see the money, the average wait time is a couple of days. Radium2 capital is one of the fastest in the industry at providing clients with the money they need as soon as possible.
Most people go with merchant cash advance options because it is faster than using a traditional bank.
How much money can a business qualify for?
A merchant cash advance is very much dependent on how well a company is doing so far. Some have issued an advance for over $1 million in the past, based on the history of the company and their ability to pay the money back.
On the low end, most companies won’t offer an advance that is lower than $5000. There are alternative learning solutions for people who might need smaller amounts than that. It is recommended in most cases for a person to explore those alternatives instead of getting locked into an advance if that is the case.
Visit Radium2 Capital’s official website to learn more about merchant cash advance.