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The best thing about merchant cash advances is that they rarely have fixed dates of repayment. Their dates are usually set by an agreement between the lender and the borrower. The two parties agree on the whole arrangement of the repayment plan.
Besides, merchant cash advances are some of the fastest loans you can apply for and get easily especially if you want a small business loan.
They take between 24 and 48 hours for approval. Merchant cash advances lenders do not check your credit score. So even if you have a bad credit score, rest assured that you will be given the loan.
Merchant loans may be expensive, but they are faster to get and have flexible repayment plans. Of course, they have a higher interest rate compared to loans from financial institutions such as banks.
As much as merchant loans do not require you to have a good credit score, there are still various things they evaluate before giving you the loan. To begin with, lenders check the amount of money you earn within the specified time of payment, be it weekly or monthly.
Larger companies need to provide identification documents and a company’s agreement. Additionally, there are various ways you could repay your loan. The most common one being repayment on a daily basis. This is the easiest way to repay a loan. In fact, you may not even feel like you are repaying a loan.
In the process of applying for a merchant advance, you need to first agree on which credit card to use to deduct money to repay the loan. After doing so, lenders can deduct up to 12% of the amount you agreed to return.
The rest of the money is usually left for you to use. Arguably, you may not actually feel like any money is being deducted. This is also the best way to repay rather than accumulating the total amount and remitting all of it at one go.
It’s an atrocious habit to borrow money without the means to pay it back. This creates a bad impression for the financial institutions, be it a lender or a bank. You need to repay your lender. Failure to do so may incur more costs and cause you to sink deeper into debt.
These merchant loans may be the best if you are confident of repaying in due time and if you are in need of small business loans.