Seasonal businesses in Annapolis, MD are are preparing for the summer, and the planning it takes to rack up sales in a finite period requires capital. In order to offset the cost without taking on debt through loans, many local businesses are turning to merchant cash advances in Annapolis, MD.
How Merchant Cash Advances In Annapolis, MD Differ From Loans
There are number of ways in which merchant cash advances in Annapolis, MD differ from loans. Perhaps the most widely recognized difference is that merchant cash advances in Annapolis, MD are debt-free. Unlike banks loans and similar financing structures, merchant cash advances in Annapolis, MD do not place any debt on the balance sheets. Instead, merchant cash advances in Annapolis, MD are based around future receivables. Additionally, merchant cash advances in Annapolis, MD give local business owners a degree of flexibility not offered by traditional lending programs. Loans lock businesses into rigid payment schedules. Monthly installments much be paid regardless of the revenue generated. Merchant cash advances have a different approach. Merchant cash advances in Annapolis, MD are repaid only when sales are made. Even then, a small percentage from each sale is put toward the balance owed. The reasoning behind this method is that businesses perform much better when they are generating revenue they can place in the bank or reinvest in their own operations. With bank loans, many businesses end up placing a good portion of their revenue aside to payoff the balance every month. Merchant cash advances offer much more flexibility, and are much friendlier to business finances.
Merchant Cash Advances In Annapolis, MD Have No Prepayment Fees
One other major difference between bank loans and merchant cash advances in Annapolis, MD is the notion of prepayment fees. When a local business finds itself accumulating a lot of revenue, and wants to pay off the remaining balance on a loan, prepayment fees are triggered. Banks was to make the most of interest rates, and forcing businesses to adhere to the payment schedule, and prepayment fees exist to discourage entrepreneurs from paying things off early. Merchant cash advances have no prepayment fees. If your business is generating a lot of revenue, and you want to pay off the balance ahead of schedule, you are free to do so without any repercussions.
Abel Commercial Funding provides working capital solutions, including merchant cash advances, to local business owners in Annapolis, MD. Contact our offices today, and put our expertise to work for you.