Small and medium-sized businesses need cash flow to survive. This may be difficult to do in the first few years of operation when profits are still hard to come by and the business is still on its way to recouping its losses. This is the reason why merchant fundings offered by Platinum Rapid Funding Group play an important role in keeping small businesses alive.
Merchant fundings are loans secured against future credit card sales of the borrower. This is a lump sum that is paid in monthly instalments from future credit card sales. As one of the leaders in alternative funding for small businesses, Platinum Rapid Funding offers flexible payments and fast cash access so small business can thrive. They cater primarily to small businesses allowing them to compete in a market dominated by bigger, often more financially-secure competition. Platinum Rapid Funding also provides a ready source of cash for businesses that aren’t ideal candidates for traditional loans like banks.
Read on to know how merchant fundings can give merchants a leg up in the competitive world of business.
5 Advantages of Merchant Fundings from Platinum Rapid Funding Group
Fast application process
Most merchant funding lenders do not have stringent requirements and applications are typically approved in a matter of days. Funding companies like Platinum Rapid Funding only need assurance that credit card sales amount to over $5,000 to approve an application.
Due to its straightforward approval process, merchant fundings are the ideal solutions for businesses that need a quick infusion of cash. The business may need quick cash for unexpected repairs or take advantage of a time-sensitive investment opportunity. With approval available after 7 days on average, merchant funding advantages allow small businesses to meet emergency financial demands without putting operations at risk.
The good thing about merchant funding is that payments are based on the month’s revenue. This is advantageous for small business that suffer from fluctuating earnings from month to month. With commercial bank loans that have fixed monthly loan repayments, the borrower may face difficulties making payments during slow months. Not so with merchant fundings where repayments are facilitated according to how much is earned for that month.
Credit history not a factor
Merchant funding companies work with any type of borrower even those with negative credit reputations. This is because the ability to pay is not based on your past financial actions but rather on future sales.
No credit/no collateral
Since merchant fundings are not loans but sales transactions, they are not reflected on your credit reports. They also do not require collateral because they are not business loans.
Merchant fundings offer small business owners the opportunity to compete, keep operations going during lean times, deal with financial emergencies, and take advantage of expansion opportunities by being an alternative source of fast cash. Give your small business a clear advantage over the competition. Get in touch with Platinum Rapid Funding Group today.