Merchant cash advances have emerged as the easiest way to draw money for small time merchants over the last one year. Such easy to obtain cash to run the business has become the life blood for small time merchants. In a stagnant economy where drawing money for business purposes has become extremely difficult, merchant cash advance has come like a breath of fresh air to save the small time merchants.

All the business magazines and journals are full of cover stories stating the sorry condition of the economy. According to these sources, not much improvement is expected in the economy during the 2012 fiscal year. The maximum development predicted by experts languishes near 4%. If things get worse, then economic growth rate will be around 2%. In such a condition, banks are not ready to provide loans to the small time business owners. The repayment terms set by vendors are stiff and the credit requirements have become restrained. Business owners with few choices are cutting down on the wages aspect by eliminating employees while skimping on advertisements on the other hand.

Under such restrictive and economically challenging circumstances, it is only logical that business owners are looking for an alternative. Merchant cash advance is that alternative which is providing the necessary fuel to the merchants to sustain their business. This is the best option for the small time merchants because drawing cash advance does not require a good credit profile. Instead loan can be obtained based on the track record of business organization. Only the track record for credit sales is required to obtain the merchant cash advance loan.

These are unconventional loans wherein the repayment terms are also relaxed. The loan amount can be repaid in small percentages from future credit transactions. The repayment can be done according to the business condition. If the organization is facing loss in a particular month, then repayment can be delayed till the next month where the organization has done great business. This takes off the burden from the shoulders of the business owner to repay the loans. Moreover, the loan obtaining and repayment terms are on the lines of revolving credit facility. A business owner can draw new advance as soon as the previous one has been cleared.

An amount of up to $760,000 can be obtained as merchant cash advance loans from lenders. No collaterals are required nor are the lenders interested in the credit history unlike conventional loans. Any small business that has existed for over 4 months is eligible for such loans. Merchant cash advance loans can be obtained with any merchant account. The best part is that the loans can be drawn with 0% interest which means the business owner does not have to lose his sleep over repayment.

Therefore, merchant cash advance loans are here to stay and especially in such an abysmal economic condition, these loans are providing the money to run businesses. These loans are making sustenance easier for small business organizations. In fact, business owners are expecting that the merchant cash advance will surpass the conventional loans in popularity and in viability.

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