The Premium Merchant Cash Advance

The premium merchant cash advance is a new type of merchant cash advance fashioned especially for small business owners who would normally qualify for bank business loans, but under the current economic circumstances, are finding it difficult to secure business financing through banks.

Consider the following fictional story to get a better idea of the type of small business owner who could greatly benefit from a premium merchant cash advance.

It was a sunny, summer, Saturday morning and Jayden Sanders couldn't be happier as he drove down Newbury Street to Bank of the Border. He was the proud owner of the flourishing pastry business that he'd dreamed of owning ever since he was a six-year-old ring bearer in his favorite aunts wedding. During the reception he experienced a taste of nirvana as a small piece of red velvet cake touched his tongue for the first time.

After that day, Jayden always had a taste for sweets, not to mention an exceptional eye for art. So after graduating from business school, he decided to combine the two and venture out to open his San Diego pastry shop, Art Sweet Art, featuring familiar favorites and a few signature treats, all fashioned into magnificent works of edible art.

After five years of steady business, Jayden wanted to open another Art Sweet Art location in Los Angeles, which is why he was on the way to the bank that sunny Saturday morning. He'd received financing from his neighborhood bank when his business was just a startup, and he knew that he would need more than the $10,000 that he had available to him through his business line of credit to finance the expansion.

"This is going to be a breeze," he thought. "I've been using Bank of the Border since I ventured out into the business world, I have five years of business experience, and my credit score is 650."

But little did Jayden know that the warm feeling that enveloped him as the sun beamed slightly upon his cheek would be replaced by the cold and gloom of disappointment that would soon fill his heart upon finding out that his bank had tightened its lending standards, requiring a minimum credit score of 720 and an increase in the collateral required to receive a business loan.

Jayden may have felt a tinge of frustration after learning that he no longer qualified to receive a business loan from the bank that had been a part of the establishment, growth and development of his small business, but he would be relieved to discover that he could qualify to receive at least $50,000.

The ideal candidate has owned his/her non-seasonal business for at least two years, has a Fico score of 600 or higher and qualifies to receive at least $50,000.

Just like an ordinary merchant cash advance, premium merchant cash advances are unsecured and repayments are deducted as a small percentage from a business's future credit card sales. Funds can be used however the merchant chooses and merchants may choose repayment terms of up to 12 months.

Still, regardless of the term the merchant chooses, there are never any penalties for repayments that are completed sooner or later than expected.

The premium merchant cash advance is perfect for owners of prosperous businesses that could use extra funds to carry out certain endeavors.

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