To run a business is not a piece of cake. We need factors of production like land, labor, capital, and organization. We need many resources out of which finance is the most important one. Money is the most important part of every business. There are times when we look for an emergency cash advance, either initially or after a few years after establishing the business.
If one wants to establish their business, then it is possible only by way of arranging adequate funds. Funds can be arranged by two sources that are internal and external. Internal sources mean the shareholders of the company invest their funds in the company as capital to commence the business. The external source is loans. It can be of many types such as bank loan, loans from financial institutions, raising funds through issuing debentures, and short-term loans from creditors.
Merchant Cash Advance (MCA) is a type of short-term loan that can solve all your business financing issues. Merchant Cash Advances can provide you initial investment for your small business within no time. They can provide you fund within 48 hours and that to be with ease and without much formalities. Merchant Cash Advance offers an aid to small enterprises so that they can run their businesses successfully without much difficulty.
MCA also helps business owners to get a loan for their business quickly. If you go for consolidation, then MCA becomes advantageous as now you can attain capital, which was not offered previously. The eligibility criterion for getting a MCA is that you have completed 2 years since the date of your business incorporation.
Emergency cash advance situations can be dealt by a business firm through the following ways:
- Financial institutions: If a company wants immediate funds, then these institutions are there to give them monetary aid. There are a lot of legal formalities that one has to go through while taking loans from these institutions. The interest rates vary from company to company. If the loan is not repaid on time, then these institutions have the power to control the business affairs.
- Banks: We all know that commercial banks are one of the common means to solve our monetary issues. Different banks have different interest rates. Legal formalities are here as well but less compared to financial Institutions.
- Debentures: They are long-term loans. These are the financial instruments issued by a company to raise funds. The company that issues debentures has to pay interest to the debenture holder until the time of repayment of debentures.
- Equity: These are owner’s funds. Companies can issue shares to people who can help them raise funds and then make them the partial owner of the company. Shareholders are paid a dividend after a year out of revenue profits of the company. If the company has suffered a loss in a financial year, then the company is not liable to pay any dividend to its shareholders.
- Merchant Cash Advance can quickly solve your emergency cash advance problems in an instant. It lends loan to small firms and in exchange for it, it takes a percentage of regular card sales of your firm. As, daily transfers made by a company come from their regular credit card receipts and payments, if a company wants fewer formalities and early loan facilities, then Merchant Cash Advance is the right match for you.
So, these are the few possible ways through which a company can resolve their emergency cash advance requirements. Amongst these, Merchant Cash Advance is the best option for your business if you are looking for a cash advance. Now, you know how you can deal with loan related issues in your company.