As more people turn to entrepreneurship, access to corporate finance. Traditional lenders such as banks have cut their loans in recent years, so independent entrepreneurs turn to other alternatives to solve big problems – finding money.
Small business owners such as restaurant owners, dental service providers, promotional product owners and other small business owners who are looking for alternative sources of business capital can now quickly raise additional money without having to offer guarantees.
Prepaid companies offer such services and are preferred by more business owners. To get small business working capital you can check various online sources.
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What is merchant prepaid?
Merchant Advance Payment (or MCA, also known as credit card factoring) is a financing option that is often used by small and medium-sized companies. This includes the purchase of a portion of future trade credit card receivables at a discount.
Every time the merchant receives a credit card payment, part of the sale is forwarded to the MCA provider until all receivables purchased are returned. However, the down payment to the dealer is not a loan mainly due to the following reasons:
• MCA providers do not require a personal guarantee or guarantee from the dealer. This means that the supplier risks losing his investment if the dealer stops operating. This is one of the reasons why suppliers have minimum requirements before spending money. This is:
1. The dealer must be in business last year.
2. The merchant has credit card sales of at least $ 2,500 per month.
3. The trader has no remaining rental obligations and remains in the rental contract for at least one year;
4. Traders do not have bankruptcy or open foreclosure.