Getting extra short-term cash by accessing credit is an important way businesses stay afloat in tough times
Standard Loan and Cash Advance Products
To manage the intense competition, low profits and high costs, merchants are seeking different ways to manage cash flow and stay ahead. Getting extra short-term cash by accessing credit is an important way businesses stay afloat in tough times and accelerate growth in good times. There are now more options for accessing credit than ever before. Helpfully, there are also plenty of software products and services that help companies manage their new cash.
Loans are one of the most basic forms of business financing. However, due to additional regulations in the banking industry, obtaining a loan from one of the large banks is harder than ever. Today, the online merchant lending industry has exploded with a variety of options for companies with poor credit or a short history. Loan companies will offer new firms cash based on the credit of the founders or just based on liquid assets, which a bank is much less likely to do.
Cash advance is another common product for merchants. Cash advances are based on existing accounts receivable. The merchant agrees to takes slight discount on the total value of the money owned in exchange for getting the money today. In return, the financing organization takes the risk of non-payment and also absorbs the delay.
Envoy Business Systems is a leading provider of software and services for the payment industry, for large and small firms alike. The company provides EMV chip card acceptance, credit card breaches, and tablet point of sale tablets among other things. For more information, please contact us.