Own A Bar Or A Night Club? Funds Are Not So Hard To Come By
Going to a bar or a night club could be the perfect way to end an otherwise hectic day for many people. They need a place to meet friends, have fun, good food, some drinks and get back home to start the next day.
This is a lucrative industry to get into as the foot fall will always be there. Despite the stiff competition in the market, this business will do well, provided you have enough security and the right set of products to offer.
Suffer From Bad Credit
When you are in this industry, more often than not, the business does not go as per plan. There could be some political issues that may throw your targets off course and cause you to suffer a loss or worse, bad credit. What can one do when the business has been affected and people don’t come in?
When you are not able to repay your loans and borrowings on time, you suffer risking your credit score. When you have a bad credit, it affects the future prospects of your business as banks won’t be ready to extend any more credit to you.
Even those banks and institutions that do lend money will charge exorbitant interest rates to cover the risks they undertake for your business growth. So what other option do you have? Either forego the loan or pay heavy interest on it? No, you have merchant cash advances to help you out.
Even when you have a bad credit history, these merchants are ready to lend money to help your business grow. They don’t look at your past credit and do not hold any collateral but instead believe in the future growth of the business.
Small businesses cannot afford to take bank loans at heavy interest rates, hence these merchants are sought after by such businesses. Be it long term or short term, one can get unsecured loans from such merchants.
So how do they take back the money lent? They take a percentage of the card receivables on a monthly basis. When it is a percentage, the amount paid out to the lender can be different every time. These merchants believe in the growth of the business and hence lend varied amounts of money.
When you want to expand your bar or get more food and drinks options, you need a considerable amount of investment. When one is in a cash crunch, the business cannot come to a standstill, it has to move on and for this one needs to borrow money.
Merchant cash advances can cover requirements for 1st Position, 2nd Position, 3rd Position, 4th and 5th Position funding. They can help in bridging the gap between what is available and what one needs. This way, the business grows while the owner has enough liquidity. This also helps them in emergencies and cover up in the case of a bad day. MCA(Merchant cash advance) is the perfect alternative funding solutions for those who want immediate cash without any collateral to be locked up.
Since the merchants only sign up a portion of the future receivables, the risks involved are much higher and hence the rates charged by them are also higher. However, you need not invest anything yourself and reap the profits of your investment as you pay back the amount.
Bridge The Gap
One does not always need full funding for their business needs. A bar owner may have the funds to buy the furniture but not to source the liquor. In such cases, the merchant cash advances can be used to bridge this gap these funding can also be used to repay the borrowed amount from other sources. This will give you more time to repay the amount and hence lesser pressure.
Whether you suffer from a bad credit score or have defaulted payments in the past, we are ready to invest in your business. This is because we see the future potential of a business and the industry and not the past. This enables us to improve the economy and also increase our earnings.
When you apply for a fund borrowing, our executives will conduct a thorough research about the industry and your business and then decide on the interest rates and other factor rates. When the risk involved is high for us, the rates are increased accordingly. If your business is sure to receive a lot of card payments in the near future, we can increase the percentage you will pay us and even reduce the term.
However, every merchant has their own way of assessing the risks and so do we. Whether you want a revolving credit or want to increase your working capital, we can help. We are keen on improving this industry and helping the general public have more places to go to when they want to distress. Whether you want to improve or expand your business, we are here to help you achieve your dreams without any hassles.