Categories Finance

Pros and Cons of Merchant Cash Advances

Getting the money to cultivate a business was among the issues that company owners experienced. Merchant cash advance (MCA) is a company loan option that delivers business owners the chance to access money fast and efficiently so they can look after problems that come up with the growth of their businesses.


Easy Qualifications

MCAs do not ask that you need to have a credit that is fantastic to get them. Lenders of the loan option are far interested in the business’ future instead of yesteryear. It is a criterion for one to demonstrate each month, your company can moderate a specific number of earnings credit. Most MCA creditors ask that you have been in business.

Quick Turnaround

approved release loanFunding and application via MCA are quite fast. The program can be performed online and doesn’t ask that you provide as many files when applying for a bank loan, as could be requested. Furthermore, MCA creditors work right with your EFTPOS terminal provider. Thus, your progress request can be processed by them. Once you need capital, this is beneficial.


You can get the sum of money you desire via an MCA. It would help if you kept in mind that every funder has different limitations. Another advantage of MCAs is your financing amount never develops even if you take time.

Company loans require the company, and the company owner has good credit ratings. This implies credit scores. An MCA looks to future earnings, not backward. Therefore a low credit score, which can be based on history, is not pertinent to the lending company.


Company Limitations

Some funders can restrict you from accepting bank loans while others limit you. In any event, ensure that favors your company and that you go.

Interest rates on a business loan may vary between 6.25 and 12 percent (approximately ). Provided that you create each loan repayment on time, avoid late penalties, and pay it off over the initial term, the APR (annual percentage rate) will be on the company loan compared to an MCA. If you require more than intended to pay back the business loan, and make interest payments and crash into a different money crunch, the price of the money goes upward.

Merchant Cash Advances Are Not Controlled

An MCA is not financing. A factor rate does not gain interest. Therefore, legislation, such as laws not governed it. That is why lenders can control variable rates that produce high APRs, although it is not actually an APR.

The absence of regulation MCAs leaves company owners exposed to the danger of having an MCA deal using a lender. You will find lenders and lenders on the market. A lender approves and will promote you to make more money than you need.

Categories Finance

How To Choose The Best Cash Card

Do you use a credit card? If yes, the chances are that you are not using the best based on your current situation. For example, a card that is used for 0% balance transfer it is not likely to be the best card for regular purchases. That is why it is essential to know the best credit or cash card you need to apply for. Research to find out more concerning these cash cards.

Ideally, the best cash card will need a comprehension of your total cash score. This, therefore, means that a person with a good stock score has plenty of choices compared to others. Also, due to the advance in technology, there are a lot of sources where you can get your help from. You can use this link to learn more on cash cards.

The amount you usually spendcredit card

When you are choosing your cash card, this is the first aspect you should put into consideration. This is because when you are choosing your payment card, the kind of purchases you make will determine the type of a cash card you will get. It is important to know that there are a lot of different cash cards with various offers. That is why it is essential to consider your spending habits when you are choosing your payment card.

Consider the rates

When you are applying for your cash card, ensure that you remember looking at the rates. You can get the most savings if you consider choosing the best card with the best rates. Some specific companies are offering different rates based on your purchase. That is why you are recommended to consider choosing the best company with the highest rates.

Evaluate your spending habits

This is another valuable tool that will guide you when you are choosing your cash card. You need to approximate how much you will spend on your card before you decide to apply for one. Also, you need to identify whether your card will be for clothes shopping, gas or groceries. This, therefore, will help you to determine the best card to choose.

Can I reload my card online?

walletThis is another factor you should put into account when you are selecting your cash card. Some cash cards cannot be reloaded online. Therefore, before you apply for one, ensure that you have asked and applied for one that you can reload online.

Categories Finance

Small Tips For Choosing The Right Direct Debit Service Provider


If you want to streamline your paying options and ensure your financial transactions, you should opt for the direct debit solution. However, if you want to take full advantage of the benefits this solution offers, you should consider finding the right supplier. Even though the majority of them are the same, you should keep in mind that there are some with notable differences, ones that might seem small but can have major effects in the long run. With that in mind, here are some guidelines that will help you find the right direct debit supplier. Additionally, you could also check Debit Direct, for any extra info and good advice too.

You must be present on the customer bank statement

cardWhen yours or your business’ name appears on your client’s or customer’s bank statement, there is no doubt left as to who collected the funds. This helps avoid any sudden cancellations or questions being raised by the customers in regards to the money collection.

Three working days to clear the funds

Once you have collected the money from your customers’ accounts, the funds should appear in your account in no more than three days. Ideally, this should be completed within two working days following the collection of the direct debit. This way, the funds will be cleared to your Client Holding Account, which is a unique account for your funds only, and which is not shared with anyone else but you. Once these funds are cleared, they will be subsequently transferred into the account of your designation and will take no more than two working days to clear. The clearance period will usually depend on the number of funds transferred

There should be no percentage charge

One of the biggest advantages of the direct debit method is that there are no percentage charges involved. Keep in mind that your bank should charge a flat fee for a debt collection, instead of a percentage. This means that your costs are always fixed, regardless of the customer. This is a much better option than having to pay a percentage of the collected amount, which means you will simply give away more, the more you collect.

There should be a variety of reports

To manage your payments and financial transactions better, you will probably need a wide variety of different reports. These can include occasional reports, daily, weekly, and monthly ones. Keep in mind that your needs will most likely change as your business grows or changes, so it would be wise to look for the options that will be of most use.

Quality communication service

When you decide to change the amount of money you collect from your customers, it is very important that the financial institution of your choosing is capable of immediately notifying the customers. They need to promptly inform them of any changes that happen to their billings. This will not only help you manage your collections more easily but also strengthen the bond between yourself and your customers and bolster their trust in you.

Proactive management

workingLast, but not least, your direct debit institution should be fairly proactive in managing your payments and your customers on your behalf. For instance, they should regularly inform you if there are any clients who have amended or canceled their instructions before the payment collection.

Categories Finance

A Brief Overview Of A Trust Deed


Financial crises have pushed most of us into the deep pit of debt. Being in debt is normal. How you get out of it is the biggest challenge. Things are likely to move from the frying pan into the fire if you are not careful. For instance, if you are in debt of £5,000 or more, you must be struggling with monthly payments. You may even have reached the point of plastic deformation- where you feel that you cannot pay some of your debts. You need a debt solutions assistance from professionals to write off these debts. You also need help with the monthly payments. A trust deed will be of great help to you.

Trust Deed

walletMany might be asking, What is a Trust Deed? It is a legal document that serves as a financial relief for the people who are in debt. Precisely, according to the Scottish law, a trust deed is a formal agreement where an Insolvency Practitioner (IP) voluntarily agrees to protect an overburdened debtor against legal action by creditors. The IP offers this protection by overseeing the administration of the Trust Deed agreement.

How to get started

The first step in getting a trust deed is contacting your preferred Insolvency Practitioner in Scotland, who becomes the trustee. Discuss your financial position with your IP of choice. He or she will determine the most favorable repayment plan for your unsecured loan. The amount of monthly repayment you can afford according to your earnings is determined. If you are in agreement with your IP and the deed is signed, the remaining part of the process is mainly done by the trustee. He or she will send the deed to your creditors. Your creditors can accept or reject the deed. If the deed is accepted, it becomes a legally binding document. It gets protection from the law. If the deed is rejected, you are given further advice on what you can do to get help with your debt.

What happens when a deed is protected?

When the deed is protected, your creditors cannot take legal action against you. In fact, they should not even contact you. They should communicate directly with your trustee. The deal remains in force for four years or longer, depending on various factors. When the trust deed period elapses, the remaining debt is declared a bad debt and written off. Your creditors cannot follow you to pay this balance.

Advantages of trust deeds

debtWith a trust deed, you do not have to worry about your creditors taking your car or home to repay themselves for the loan you have with them. You also do not get letters and phone calls from them requesting you to repay your loan. Interest on the loan is also frozen when the deed is signed, reducing your burden. A Trust Deed agreement can be done within a short period to prevent a court action, auction off your assets and earnings arrestment. Trust deed arrangements are also cheap. Insolvency Practitioners know that you are already in a hole and they do not want you to dig deeper.

Categories Finance

Beginner’s Guide To Getting A Business Loan

Are you looking for some loan for your business? Well, this can be a hectic process particularly for starters or those with a bad credit score. However, it is not worth to let the business suffer financially as there are some options one can try. So, this article will highlight on how to get a business advance loans from reliable lenders and the procedures one can go through as well.

Beginner’s guide to getting a business loan

Facts about business loans

Most people including those in business think that getting a business loan is one of the hardest things. Others fear the repayments plans since business is a total risk. However, these facts will help you understand a few things about the loan.


  • You can still get a business loan even with bad credit history – Some merchant lenders usually have a program that caters for such but at higher interest rates to take care of the risk.
  • You get instant approval – business loans from reliable financing institutions and lending companies are fast to approve your loan if you qualify. Unlike banks which can take one or more weeks.

Reasons to get a business loan

If you have been running a business, you probably know that sometimes there is a great need to pump some money into it. Here are the common reasons;

  • Startup capital – some people may have business ideas but no capital to start. However, an appealing business plan can lure the financing institutions into giving you one.
  • Expanding capital – At some point, a business will need more capital to grow by adding stock or opening a new branch.
  • Clearing liabilities – when things are not going well, a business may require some more money to cover liabilities they have.

Various ways to get a business loan

  • Merchant lenders – They provide flexible business loans without any requirements that lock many businesses out. As much as some of their lending plans may have higher interest rates, this may be the only option to get a loan for your business.
  • Banks – They are the common lending institutions out there, and their interest rates are fair. However, they have many requirements which include bank statements, business financial records, credit history and a proof of business


Beginners in business can get helpful insights from the above highlights. They not only guide on the importance of a business loan but also the best places to borrow. If they are not helpful now, they will definitely be at some point as the majority of businesses cannot thrive without the need of a loan.