An assured way to manage capital for small merchants!

Any form of business, irrespective of their size and industry, needs cash or funding for smooth function the activities of the company. It has been seen that larger businesses easily draw funds from various resources, including banks and business lenders. The small businesses are the one who suffers for adequate funding. Banks and other business lenders have lengthy processes and that take weeks to sanction and provide funding. The business owners have to face great difficulties in sanctioning a funding from the market as well. The merchant lenders have simplified and improved the process of funding with the introduction of the merchant cash advance system. It is beyond the concept of assessing loan or crediting a lump sum.

What is the concept behind Merchant Cash Advance?

Though the concept is well-versed in the economy, but to make the concept clearer and approachable, a briefing is done here. The financial sources that provide funding for a small business become their merchant lender. They purchase a fixed dollar amount of the businesses future credit or debit card receivables at a discounted price. In return, they pay back the business a lump sum of cash funding. The funding can be used for advertising, repairing works, payroll management or any other business activities. The owner builds up a partnership with their lender whom they can trust. This service has turned beneficial to many businesses and has helped them in advancing and developing into a successful running company.

Where to search for a merchant lender?

There are certain companies that provide their supporting hand in return of the businesses future cards. For the convenience of small business owners, the reference of one of the reliable sources of merchant lender is given here - “Small Merchant Capital”. This company was founded with the objective of providing funding to the businesses at the time of their need. The professionals working here have an apt business solution for receiving merchant cash advance quickly. They understand the need of finance for the small business community and provide funding within 24 hours.

Why hire them over other companies?

They have taken the motto to help out the businesses in every possible way by fast lending them funds. The steps involved in the process are hassle-free and easy to apply so that you can fasten up the process of development. The professionals hold many years of experience in the field and are capable of providing you with painless and affordable repayment measures. 

Steps involved in the process:

Business owners may go through the following step-by-step process of funding.

·      Easy to apply application process

·      Submission of application form

·      Approval of cash within 24 hours time limit

·      Providing 3 months of ACH statements

·      Providing 3 months of credit card statements

·      Submission of purchase agreement

These steps could change the fortune of a business. Business owners truly willing to receive instant cash funding for their business may contact the merchant lender. 

Working capital – Ensures the health of your business

In order to run a business smoothly, one needs regular funding and financially strong back support system. The entire structure of business lies in proper planning, setting up of business and adequate implementation of the plan. And to execute all these functions, companies need funding that can be used for daily activities. The capital that is used in day-to-day activities for the smooth running of the business is known as working capital. It acts as the financial backbone of an organization. The proper calculation of this capital depicts the financial strength of a company and reflects the available cash flow that is required to meet up with the operating expenses and short-term obligations.

What is the importance of working capital?

Irrespective of the size of your business, maintaining a good balance in the capital is an integral part of business activity. It is crucially important for small companies as they cannot access the financial market to borrow sum and to survive in the start-ups till the break-even point. It is important for small companies to keep a track on their initial funds to keep their business running. In simple terms, it is the remaining cash that left with a business after paying off their current liabilities.

It is responsible to a larger extent for the overall health of the business as it reflects various activities of business that include revenue collection, inventory management, payments made to suppliers and debt management. The amount of capital varies from company to company irrespective of their industry.

Types of working capital:

As mentioned earlier, there are varied forms of working capital that are maintained in a business. Here, we discuss its types:

• Gross and Net Capital - The total value of current assets possessed by a business is known as gross capital and the value remaining after payment of current liabilities is known as net capital.

• Permanent Capital - It is the minimum amount of capital that must always remain in the business in the form of cash or stocks or account receivables. This value is required by a firm for performing its day-to-day activities. These funds are mainly derived from long-term resources.

• Variable Capital - Just like permanent capitals, these funds are drawn from short-term resources. The necessity of funding fluctuates in a business. The requirement may increase or decrease from time to time depending on various factors, this capital helps the business to pay off the payments.   

Where to search for working capital funding?

From time-to-time conditions, companies search out for external sources which can provide them working capital. Certain companies provide funding to small businesses with the motive of supporting them to develop in the market. The businesses have to pay off the loan after a certain term. One of the reliable companies that provide financing to small businesses is “Small Merchant Capital”. They provide liquid capital to the businesses for a certain period. Interested companies may visit their web link smallmerchantcapital.com to know about their terms and conditions. Companies can avail funding of $5000 to $300,000 depending on the necessities. So, visit the site without wasting any time.