WG Financing: Merchant Cash Advances, Advantages Over One-Time Loans

    MIAMI, FL, November 10, 2015 /24-7PressRelease/ -- Merchant cash advances permit small businesses to leverage existing sales, revenues and inventory. The new merchant cash advance system from WG Financing makes the process of obtaining working capital fast and easy. This is especially true when compared to one-time loans. The WG Financing solution is specifically designed for business owners with bad credit and others who require alternate sources of financing. This is sometimes called credit card factoring because it anticipates the earnings of future credit sales in order to calculate the amount of the cash advance. For example, assuming a 10 percent repayment rate, the automated payment system will deduct $500 from the business's receipts if the total monthly sales receipts are $5,000. One-time loans do not allow this repayment method, which deducts the payments incrementally until the entire amount is repaid.

Expanding a business requires funding, yet many small businesses struggle to make payroll every week. A business owner who is constantly dealing with a tight budget may hesitate to expand; however, the merchant cash loan can provide the financial leverage necessary to stimulate additional sales. The merchant cash advance gives the business an advance on future sales, so these earnings can be used as leverage. Long-term planning is practically impossible when only one-time loans are available, so WG Financing offers competitive rates on merchant cash advances. One small business owner, Mr. Boulton, stated the situation starkly when he remarked, "It's the only way I've found to get the funds that I need."

A merchant cash advance can help to provide adequate funds for growth, new hiring, inventory and expansion. Traditional one-time bank loans often require collateral, which is not always an acceptable option for small businesses. Cash advances from future credit card sales can solve this immediate problem, which makes it an attractive option. The rate of retrieval is an important consideration for the small business owner to consider. This rate typically fluctuates between one and 10 percent. Businesses with adequate revenue streams can easily manage this rate, and access to quick cash can help to maintain normal operations during a financial downturn. The repayment terms are also amenable to businesses. The automatic payment system provides a convenient and streamlined repayment method. The amount will be deducted from the next months' earnings until the entire amount is repaid.

WG Financing focuses this lending option on serving the interests of businesses who require minimal paperwork. This solution is ideal for business owners who prefer to obtain a merchant cash advance without the inconvenience of going through a credit check, providing collateral, submitting a business plan or filling out long application forms. Many one-time loans often require all of these items, but a cash advance is not the same thing as a loan. This type of financing is especially useful for businesses who have inventory that is difficult to use as collateral. Cash advances from credit sales can allow businesses in various industries to use existing resources as leverage for expansion. This growth often generates the revenues needed to repay the merchant cash advance. The application process is simple, which expedites approval. The money can be deposited into the merchant's bank account within 48 hours. Establishing an account now can also provide a safety net for the future.

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