Nearly every established business needs extra money for expansion, advertising, and other business reasons. Most probably, traditional lending companies like banks will not be able to provide financing for expansion. Nonetheless, there are other solutions. For example, reputable merchant account providers like Canadian Merchant Account Services, are more than pleased to provide help for businesses to get merchant account funding.
How Merchant Account Funding Works
When a company accepts credit cards as mode of payment, they do have an available cash flow asset. This asset may be leveraged any time and be used as an instant source of capital. This process is called merchant account factoring.
While this may look the same as a loan, it doesn't work in the same principle. In merchant account funding, you're actually selling your future credit card sales to the merchant account provider at a slight discount. In this set-up, you stay away from the hassles of applying for a loan at the bank. There are no queues and the approval is quite fast.
Application Process
To apply for a merchant account, visit the provider's website, complete the application for a funding request, and then wait for a return call. As soon as the application is approved, the funds go directly to your bank account in a few days. Some providers may offer next day funding, but usually, you can expect the funds in 5 to 7 business days.
In the application form, there are a few questions you need to answer. These answers will determine if you can get approved or not. These will include your business name, contact information, approximate number of sales in a month, your credit card service provider, etc. Make sure to specify when you will need the funds as well.
Purposes of Funding
The funding can be used for a variety of reasons. Here is a list of possible excellent reasons to get approved:
• Company expansion
• Relocation
• Renovation
• Advertising
• Emergency purchases
• Equipment purchases
• Debt payments
• Payroll
• Tax payments
Not all companies have the necessary finances when the need arises. Hence, businesses can truly make use of the benefits that they can get from this source of financing. If traditional financial sources aren't an alternative, leveraging your merchant account funds can assist you to get your finances in order. If you would like more related information about merchant account, then you can visit the website of wikipedia.
Who Can Use Merchant Account Funding
Remember that this type of financial strategy isn't for everyone. Merchant account providers may only approve businesses having a proven sales record. Usually, businesses with at least six months of credit card processing history are accepted for funding. However, there may be exceptions according to the provider’s terms. To know more, click here.
No comments:
Post a Comment