Tuesday, March 10, 2015
Canadian Merchant Business Cash Advance Financing � Your Solution For Small Business Finance Needs
You have made the decision to consider merchant business cash advance financing as an overall business financing strategy. In some cases you may or may not already have some form of business financing in place. Let's explore the three things you need to know around merchant business cash advance financing in Canada,,, and debunk some of the myths and mis information that is out there on this subject. These are:- All lenders are the same- Small Business Merchant Advance is expensiveThe reality in Canada is that as a country we came late to the merchant advance party. This form of financing started in the U.S. and has been established for years. We should probably do a very short 'primer' on merchant cash advance business financing .It is essentially the sale,Detroit Lions Tickets Culpepper Signs Two Year Deal,., or monetization of your future sales to a third party. It is very dominant in certain industries, i.e. restaurants, but quite frankly is now prevalent throughout Canada in many industries. What differentiate it is really the three points we'll discuss � who is offering it to you, what it costs,customize bobblehead, and how does it work.We recommend to clients that they deal with Canadian firms when considering a small business financing option. Because this business financing is somewhat unique,customized bobbleheads, and mis understood we strongly recommend you work with a trusted, credible,personalized bobblehead,Chicago Production Houses - Take A Look, and experienced advisor in this area who can guide you through what many consider the small business merchant advance maze.So let's get back to our three key areas: First small biz financing firms vary in Canada by size, geography,personalized bobblehead, and financial capability. You need to align yourself with a party that is most suited to your type of business, the size of your sales, and the ability to deal on a one on one basis on any issues that come up .As we stated, it seems common sense that your best partner will be a Canadian firm who as direct representation in your geographical area.Lets move on to point # 2 - Is it expensive? We always hate saying this,If You Haven�t Had Real Parma Ham, You�re Really Missing Out!, but the answer is that it depends. Merchant advances loans have the aura of being expensive, and unfortunately most clients we meet are always focus on rate. A few key points need to be made,customized bobbleheads, so let's be clear on this issue. First of all the financing rate in Canada has a discount rate of between 2-3% per month. Let's use a clear example. Let's say your firm has sales and credit card sales in the 40k per month range,customize bobblehead, you would typically be eligible for a loan in the 40-50k range. The loan is advance, on an unsecured basis by the way, with only your promise to pay, as well as your businesses promises to pay. Payments are made to reduce the loan on a per cent age of future sales, typically 10-25%.One of the main points we can make when advising clients on a proper small business merchant business cash advance financing facility is that the funds you get on immediate cash conversion can be used to purchase inventory at a better price for cash,personalized bobbleheads, or alternatively, you can take the many 2% net ten day discounts many suppliers offer . If that was the case on all your business we can make the statement that you are recovering 100% of your financing costs via this strategy,Commercial Insurance And Online Deals,personalized bobbleheads, plus you have unlimited working capital .That's financial power.In summary, merchant cash advance loans can be easily mis understood. Assess what you think is wrong or might not work with this method of financing,personalized bobble heads, and develop a financing strategy with the knowledge that you will not be making the mistakes of others who are less and ill informed.Speak to a trusted,custom bobblehead, credible and experienced Canadian business financing advisor who can help you start a loan facility that makes sense for your retail or small business.
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