Your Merchant Account Work For Your Manufacturing Distribution
who runs a business today has a merchant account which is nothing but
an account to hold all the money from your credit card transactions.
But did you know that this very merchant account can help you get
some quick financing for your manufacturing distribution business?
Now you do!
distributor is a link between the manufacturer and the retailer.
However, when you are a distributor manufacturer you cut down your
expense on a distributor. New and small scale businesses who cannot
afford a commercial distributor work as their own distributors and
are called as a commercial distributor manufacturers.
why commercial distributor manufacturers need financing
the role of a distributor may seem straightforward, many changes in
the recent times require them to change too.This is especially true
when you are your own distributor. Here are the reasons why you will
changes in the way, businesses are operating your commercial
distribution business might need capital to invest in new equipment.
is not just all about shopping online anymore or having a website for
your business in place.Customers look for improved sales with options
like omnichannel, rich user-experience websites, more user-friendly
online shopping websites, and marketing using social networking
back-end systems such as those involved in shipping, inventory
management, accounting, client management etc. need a change. This is
because a weak or inefficient back-end system can affect supply chain
and make all other changes ineffective.
time to time, businesses will require capital to keep their workforce
and talent well-paid. The loss can be compensated when sales pick-up.
the distribution business, more space equals more business. So when
you need to expand your distribution business you will need capital
to invest in more space for your warehousing needs.
is one area that requires constant improvement no matter what your
business. Upgrading services to maximize customer satisfaction and
experience also requires capital.
it comes to short-term financing, a number of options are available
to businesses as shown below.
in terms of quick loan disbursal and convenience, merchant cash
advance wins hands down for businesses such as commercial
distributors. This is especially true if yours is a start-up
is merchant cash advance?
cash advance is quite literally using your credit card transactions
to obtain a loan and repay it. Instead of submitting various forms
and proof of collateral, a merchant cash advance provider will simply
look at your credit card transactions history to determine how much
loan you are eligible for. Then you repay the loan as an agreed
percentage of your daily card transactions.
of merchant cash advance
small and new businesses a merchant cash advance is a quick way to
build capital for short term use. This type of loan has many
advantages over other types of loans as shown below.
are easy to apply with simple online applications
you need apart from your credit card statement is your tax return
papers and your bank statement
cash loans have a high approval rate of more than 98%
can get your funding in a matter of days with typical processing
time ranging from 1 to 3 days and as little as a couple of hours
cases where a traditional bank loan is not accepted, you can apply
for a merchant cash advance
if you have bad credit, poor credit or many NSFs (No sufficient
funds), you can still apply for a merchant cash advance
is easy as only an agreed percentage of the daily sales is paid to
is quick as the period ranges from 6 to 12 months
repayment amount is automatically debited from your merchant account
on a daily basis
is no restriction on what you can spend the loan amount on
is no monthly interest rate to worry about
is no need for a collateral to be eligible for the loan
position advance funding
is never a one-time affair, especially when you are a small scale
business. That is why merchant cash advance options go one step
further and provide what is called as Additional position advance
explain it in simple terms, you can apply for a second cash advance
even before you completely repay your first advance. This is called
as second position funding. In fact, you can take another after your
second one and even multiple ones. Accordingly, they are names as 3rd
position and so on.
is also called ‘stacking’ and merchant cash advance providers are
let you consolidate these additional position funds into one for easy