Merchant cash advances sometimes referred to as business cash advances, are an extremely useful alternative to conventional small business loans that do not cause so many problems. Although it sounds a little mysterious and complex, the cash advance of traders is very simple and easy enough for those who need it. If your company accepts credit card payments from consumers and regularly generates specific revenue, your business will likely benefit from this type of advance. The loan is based on projected future credit card sales, which means that your income is the guarantee of the small business loan. Naturally, merchant finance companies are committed to simplifying the process itself and it is easy to apply online in many cases.
The requirements for traders’ cash advance options are extremely simple and very easy to qualify. The company has to process credit card payments for at least two months in most cases. Naturally, merchant finance companies will want to charge a minimum monthly amount of credit card revenue, usually low, but directly related to the amount you want to borrow. You will want to consider the options available at your disposal before going for a specific type of merchant loan, regardless of what is available on the market. If you are seriously considering a cash advance, it is important that you read the fine print and that you understand everything about the application, so as not to overlook hidden charges or charges. Initial fees, closing costs and other types of fine print can cost you a fortune if you do not catch them the first time. You should never be required to pay any additional fees or costs on a business advance loan.
HOW THIS HELPS LATINO OWNED BUSINESSES
Like many small local businesses, the most common forms of capital needed by Latin American small businesses are lines of credit, loans, and cash advances. Latino entrepreneurs are more successful at working with small local banks (where it is possible to develop personal relationships with bankers) than big banks or national banks.
Latin American companies have the opportunity to diversify and expand their revenue streams, including business-to-government sales. 42% of Latin American-owned businesses sell to other companies, compared to 47% of white-owned businesses.
A new study of small business loan applications from more than 28,000 companies, including requests from more than 2,000 Latin American entrepreneurs in Biz2Credit’s online credit market, revealed that average annual business income owned by Latin Americans had jumped 26.5% in the last 12 months. The income of Latin American companies increased from $258,702 in 2017 to $327,189 in 2018.
The analysis also revealed that the number of credit applications from Latin American-owned companies had increased by 22% over the same period and that their average credit ratings had increased from 592 in 2017 to 594.
The Biz2Credit study confirms a long-time theory: the growing contribution and the growing importance of Latin American-owned businesses in our market. For years, the entrepreneurial needs of Latino business owners have been made a top priority, and it is believed that it is essential to enable the growth of their business with a comprehensive product offering, tools, training and services. Providing access to better and faster financing options will allow Latino-owned businesses to capitalize on this momentum.
The Latin American business world now represents billions of dollars in revenue, despite the constraints and obstacles. It is these constraints, be they political, financial, or cultural, that still prevents Latin American entrepreneurs from improving their business.