If you are in the process of deciding which type of business funding is best suited for your financial situation it is important to understand that there is not a one size fits all loan/advance that works best for every company. The truth is, a merchant cash advance may provide YOUR business with the best funding option while a debt consolidation loan may make the most sense to another business. It is for this reason that you should speak with a specialist so you know all possible alternatives available to you.
Merchant Cash Advance
Merchant Cash Advance financing provides upfront money that is paid back with a certain percentage of daily credit card sales until the agreed upon amount is paid off. The money can be used for virtually anything.
Automated Clearing House (ACH) Financing
ACH Funding, unlike a merchant cash advance, allows business without significant credit card activity to access working capital centered on cash flow. Similar to a merchant cash advance, the funding is based on the aggregate cash flow through business operating accounts. If you have high cash flow but low payments made via credit card, this could be a useful alternative.
Debt Consolidation Loan
Debt Consolidation Loans may be a better alternative if you are applying for a merchant cash advance with the hopes of paying off existing debt. This type of funding offers a set maturity date and a potentially low fixed cost of repayment so if you have good business credit a debt consolidation loan may be the least costly alternative
Commercial/Investment Property Loan
Commercial Property Loans may be the best alternative if you are applying for a merchant cash advance with the hopes of buying a commercial property. Terms are reasonable and can be used for warehouses, retail centers and office complexes. If a business entity does not have a financial track record or adequate credit history to meet lending guidelines, a principal or owners of the business may be required to guarantee the loan.
A Small Leader in Business Lending
CapitalFront was launched with a simple premise – create an easy, accessible and rapid process for small and mid-size businesses to fund their growth. CapitalFront strives to bring a wide array of financial products, including merchant cash advance, receivable financing, factoring, SBA lending and fixed rate term solutions, to independent business owners nationwide. Call today or fill out our online application.