One of the biggest concerns an entrepreneur has is when and where the next inflow of cash will come from. When opportunity for expansion knocks, will your business be ready, willing, and able to capitalize and grow? According to the US Government, 60% of failed businesses say they went under due to a lack of liquidity, or a lack of cash reserves. In order to alleviate the seasonal and cyclical nature of new start-up revenue inflows, an Ocean Financing merchant cash advance may be the answer.
A merchant cash advance is based on the promise of future business credit card sales. The business owner agrees to sell a portion of his or her future credit card sales and Ocean Financing provides the business with an upfront payment of cash. Repayments are based on a predetermined percentage of daily company revenues. The merchant cash advance agreement is short-term and typically paid back within 18 months. Other merchant cash advance repayments available through Ocean Financing are:
- Bank ACH splits – perfect for businesses that do not process credit cards at all. The same mechanics of a traditional merchant cash advance apply but instead of repayment coming through credit card terminals, payments are directed through Automated Clearing House (ACH).
- Credit card splits – a hybrid cash advance agreement excellent for businesses that do not solely process credit card payments but accept direct bank account debits as well.