• Home
  • About
  • Contact

The Phat Startup

The Ultimate Lifestyle Blog for Entrepreneurs

  • Blog
  • Blogger Lifestyle
  • Money & Finance
  • Motivation
  • Personal Growth

Blog

Ali Mayar, CEO Of Platinum Rapid Funding Group, Talks About 3 Important Reasons Your Business Should Get A Merchant Funding

A person holding a sign Description automatically generated

A merchant funding is a non-traditional loan that uses future credit card earnings as collateral. The lender basically provides up-front, quick capital in exchange for a portion of the business’ credit card sales or daily bank deposits. The lender receives a portion of the sales as payment on a monthly basis until the entire debt amount is paid.

Even during times of normal operation, an infusion of cash can help optimize operations, expand the business, or ensure that employees are paid on time. Of course, there are a number of alternatives to merchant fundings that may suit a particular business. Read on to know the top 3 reasons why a merchant funding is a perfect option for a business like yours.

No need for collateral or credit

Merchant fundings do not need collateral because they depend on future sales. This is the reason why most lenders will not ask for credit reports and why your ability to repay a merchant funding will not affect your credit ratings.

Fast application and approval

There are many instances when a business needs a quick infusion of cash right away. Whether it’s to take advantage of a time-sensitive expansion opportunity or to meet cash flow needs, merchant fundings can come to the rescue because they can be approved in a matter of days. The process is straightforward. The lender usually evaluates your tax returns and financial statements, as well as reviews your current business plans. The lender will look at the length of time the business has been in operation and the monthly returns on your credit cards. You have a good chance of having your application approved right away if your credit card sales consistently go over $5,000.

Collections based on revenue

Unlike traditional loans that you have to pay whether or not you are meeting your target sales, merchant funding repayments are collected based on your revenue. Repayments are only done when the company has sufficient cash flow coming in.

Due to the fact the merchant fundings do not need collateral, they often come with shorter terms and the cost of an advance is often more than a standard bank loan. In most cases, the borrower has a year to 18 months to pay back the loan. It is important to determine if a merchant funding can give you the solution you need or if another type of loan can do the job for you. One way is to look at the urgency with which you need a quick loan. If there is an urgent need for fast funding and you have the cash flow to pay the loan back, then a merchant funding could be the solution you are looking for.

Ali Mayar is the CEO of Platinum Rapid Funding Group, one of the leading alternative lending companies catering to small and medium-sized businesses. Get more insights on merchant funding and how they can be beneficial for businesses by visiting alihabibmayar.com. You can also follow Ali Habib Mayar for business and entrepreneurship updates on Facebook and Twitter.


« Chatting With Agam Berry Of Quantified Commerce
What Does An MBA Teach You? Does It Help Your Business Thrive? »

About The Phat Startup

The Phat Startup was created by Mike McOwen to create a space where entrepreneur lifestyle could be focused on. We tend to live a different lifestyle than most. Entrepreneurs tend to be interested in maximizing their life, not only their profit.

Connect With Me

  • Email
  • RSS
  • Twitter
  • YouTube

Twitter Feed

Mike McOwenFollow

Mike McOwen
PhatStartupsMike McOwen@PhatStartups·
29 Dec 2017

Why is content marketing so important? Find out here: http://thephatstartup.com/money-finance/why-your-business-needs-a-content-marketing-strategy-in-2018/

Reply on Twitter 946751505146707968Retweet on Twitter 9467515051467079681Like on Twitter 9467515051467079682Twitter 946751505146707968
PhatStartupsMike McOwen@PhatStartups·
9 Oct 2017

http://yescincinnati.com/

Reply on Twitter 917521630162759681Retweet on Twitter 917521630162759681Like on Twitter 9175216301627596811Twitter 917521630162759681
PhatStartupsMike McOwen@PhatStartups·
25 Sep 2017

Wow, interesting

Forbes@Forbes

Millennial men are more likely than women to default on student debt http://on.forbes.com/60148NudC

Reply on Twitter 912458136849698816Retweet on Twitter 912458136849698816Like on Twitter 9124581368496988162Twitter 912458136849698816
PhatStartupsMike McOwen@PhatStartups·
25 Sep 2017

I LOVE Toronto! Miss that place

GO Transit@GOtransit

Explore Toronto’s art scene with GO! Enjoy special late night service during Nuit Blanche on Sept 30. https://cards.twitter.com/cards/v2l8b/4ttwx

Reply on Twitter 912458028355670017Retweet on Twitter 912458028355670017Like on Twitter 912458028355670017Twitter 912458028355670017
Retweet on TwitterMike McOwen Retweeted
BuffaloSabresBuffalo Sabres@BuffaloSabres·
25 Sep 2017

Batter's up! ⚾️ Spending quality time with our friends at @MiracleLeagueWN.

4
Reply on Twitter 912457252057034754Retweet on Twitter 91245725205703475453Like on Twitter 912457252057034754318Twitter 912457252057034754
Load More...

Blog Ideas That Make Money

Overcoming Challenges: Strategies For Improving Startup Team Performance

How to Create a Retail Space You Are Proud Of

What are KF Fittings?

Search

Copyright © 2023 · The Phat Startup

Copyright © 2023 · Divine Theme on Genesis Framework · WordPress · Log in