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Merchant Loan – An Additional Way To Get Money For Your Business

By Daniel Samoohi

Similar in nature to a small business loan, a merchant loan is funding a merchant receives for different purposes that will need to be paid back within a 6 to eight month duration depending on how much working capital is attained. Merchant Loans are becoming more and more used as local lenders are toughening their necessary stipulations for small business loan approval.

Unlike conventional bank loans, Merchant Loans don’t require good credit. As a matter of fact, if you were rejected by the conventional banks and require access to funding in a short amount of time, a business cash advance may be a convenient solution. As a entrepreneur would expect, the conditions placed upon such cash advance programs commonly include more costly interest rates since the advance company is taking on a higher risk.

Some programs let the entrepreneur attach the repayment schedule to transaction levels of the business. This is extremely useful to a merchant that has large changes in income from month to month. Payment is ultimately tied to Visa-MasterCard transactions, allowing for smaller payments during bad months. This feature is extremely useful to those merchants who are seasonal in nature because a fixed payment each month is not necessary.

A Merchant Loan can be of particular use to those merchants who have not been open for long. To get a traditional bank loan or a loan from the Small Business Association, a merchant will be required to give proof of collateral, an extensive business history and a credit report with excellent scores. When a small business owner is just starting out in business, this may not be possible, especially in today’s economic climate.

However,caution is advisable when looking for a Merchant Loan. It isn’t unfounded to find growing payment terms, application charges and a mandatory change to a specific credit card provider. Reviewing the fine print of any arrangement is a must. For those entrepreneurs who find themselves in need of funds and have few other choices available, the business advance can be particularly helpful instead of to waiting months for a traditional small business loan you most likely will not get approved for.

Dating back to early 2008 Daniel Samoohi has assisted 1000′s of business owners in finding reputable providers in order to review offers for a Merchant Loan. By making providers compete with each other, Daniel also assists businesses in finding great deals for Merchant Loans.

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Article Citation
MLA Style Citation:
Samoohi, Daniel "Merchant Loan – An Additional Way To Get Money For Your Business." Merchant Loan – An Additional Way To Get Money For Your Business. 16 Aug. 2010. uberarticles.com. 30 Oct 2014 <http://uberarticles.com/finance/loans/merchant-loan-an-additional-way-to-get-money-for-your-business/>.

APA Style Citation:
Samoohi, D (2010, August 16). Merchant Loan – An Additional Way To Get Money For Your Business. Retrieved October 30, 2014, from http://uberarticles.com/finance/loans/merchant-loan-an-additional-way-to-get-money-for-your-business/

Chicago Style Citation:
Samoohi, Daniel "Merchant Loan – An Additional Way To Get Money For Your Business" uberarticles.com. http://uberarticles.com/finance/loans/merchant-loan-an-additional-way-to-get-money-for-your-business/


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