Most small business owners are aware of their traditional loan options. However, many don’t realize that there are traditional loan alternatives that may be easier to qualify for. At Capital Trust Lending, we urge business owners who have been refused financing by their banks to ask us about our merchant cash advance program. This financing solution makes it easy to gain access to funding even when you don’t have a lot of collateral or the best credit history
What To Know About a Cash Advance vs. a Traditional Loan
It’s natural to wonder how a cash advance differs from a traditional loan. A traditional loan is a lump sum of money loaned to a borrower that must be paid back in regular monthly payments. A merchant cash advance, on the other hand, is a sum of money that’s taken against the borrower’s merchant account (i.e. their future credit card sales).
When you’re approved for a cash advance, you don’t pay it back with regular monthly payments. Instead, the repayment process is more automated. We simply receive a small percentage of each credit card transaction you process. That means every time a customer uses a credit card to buy products or services from you, a small percentage of each sale will be diverted to us. Here are some benefits this program offers:
- Minimal paperwork
- Easy payback terms
- No collateral needed
- No fee to apply or close
If you’re interested in applying or learning more about our merchant cash advance program, please contact us.