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A merchant cash advance is a way for small businesses to get funding based on their credit card sales. Rather than a loan, the business sells a portion of future credit card receipts in exchange for an upfront lump sum. Blursoft offers this service called a merchant cash advance Blursoft, which can provide quick cash flow for expenses. However, readers should do their research first before applying, as repayment terms vary and costs may be high depending on the provider.
This article will discuss how a merchant cash advance Blursoft works through Blursoft and the application process. It will explore repayment methods, such as the daily percent taken from credit card transactions. Both the pros and cons of this funding option will also be examined. Finally, tips are provided on making the most of a merchant cash advance.
What is a Merchant Cash Advance?
A merchant cash advance is a financing option for small businesses that need money fast. Instead of getting a traditional loan, a merchant cash advance funds a business using their future credit card sales.
With a merchant cash advance, a lender will look at how much a business normally takes in through credit card payments. Based on past credit card receipts, the lender determines how much to give as a cash advance and the repayment terms.
The big difference from a loan is that with a merchant cash advance, repayments are not fixed monthly payments. Rather than interest, the lender puts a “factor” on the advance amount, determining how much the business has to repay.
Then, the lender takes a certain percentage of daily or weekly credit card sales as repayments. This percentage is called the “holdback rate.” For example, if the holdback rate is 10%, the lender takes 10% of credit card sales daily until the full repayment amount is reached.
This makes merchant cash advances more flexible than loans, as the repayments automatically adjust based on current sales. It’s a good short-term option for businesses that need quick access to funds based on their credit card processing history.
How Merchant Cash Advances Blursoft Work
Blursoft merchant cash advances can provide small businesses quick access to funds when needed. If a business owner applies, Blursoft can deposit money into their bank account within 1-3 business days.
The advance amount is based on the business’s average credit card sales over the last few months. Blursoft reviews these card statements and some basic business information as part of the application. Qualifying businesses generally need to average at least $5,000 in monthly credit card sales.
Once approved, merchant cash advance Blursoft deposits the advance into the business’s bank account. Then repayment starts right away through daily withdrawals from the business’s credit card transactions. Blursoft sets a percentage of each sale, called the “holdback rate,” that they keep each day until the advance is paid off.
For example, if a $10,000 advance has a 20% holdback rate, Blursoft would keep $20 from every $100 in credit card sales. They collect the holdback payments automatically until the full amount is repaid. There is no set repayment schedule – it’s entirely based on the business’s current credit card activity.
On top of repaying the initial cash advance amount, businesses also need to factor in a “merchant cash advance fee.” This sets the total amount that must be repaid and is often expressed as a multiplier of the advance, such as 1.2. So for a $10,000 advance at 1.2x, the business would repay $12,000 total.
Applying Through Blursoft
Applying for Funding with merchant cash advance Blursoft is Simple and Fast. Blursoft makes it easy for small business owners to apply for a merchant cash advance even if they don’t qualify for a traditional loan. The first step is to ensure you meet the basic eligibility criteria.
You need to have been in business for at least 6 months and have a minimum of $5,000 in average credit card sales per month. This shows you have a steady customer base and income stream to repay the advance.
Once approved, the application is all done online in just a few minutes. Blursoft keeps it simple – they only need basic information about your business, like the company name, tax ID, how long you’ve been operating, and your average monthly credit card volume.
No financials or collateral are required, which is great for new businesses without needing more financial statements. You only need a valid ID and business tax documents to verify your identity.
Within 1 business day of applying, most applicants will know if they are approved. Blursoft’s goal is to make the process fast so qualifying businesses can quickly access the funds they need.
If approved, you’ll receive your contract to review the terms. Once signed, the money can be deposited into your business bank account within 24 hours. Then, you repay through a percentage of your daily credit card receipts.
Blursoft has helped many small business owners obtain funding easily. See if you qualify by applying online – it only takes a few minutes to start the process.
Repayment Terms With Blursoft
When a business takes out a merchant cash advance from Blursoft, it must pay it back over a period. Blursoft will take a small portion of the business’s card transactions daily towards repaying the advance.
Typically, Blursoft will hold back 5-10% of the money made from daily credit and debit card sales. This daily repayment amount comes directly from the business’s card processing withdrawals. A consistent percentage each day ensures the advance will be paid off through regular cash flow over several months.
The repayment term can last from 3 months to a year, depending on factors like the business’s monthly card volume. Higher volume businesses may only need 6 months to repay, while others with smaller transaction numbers may have terms up to 12 months.
The interest rates on advances from Blursoft aren’t set in stone and may vary depending on the business. However, Blursoft aims to offer competitive rates compared to other merchant cash advance companies. They want businesses to feel they’re getting a fair repayment deal.
By having daily automatic repayment taken from card sales, the process is designed to be hands-off for businesses. They can focus on operations while steadily chipping away at the advance balance through their normal payment processing activity.
Merchant Cash Advance Blursoft: Pros and Cons
- Quick access to funds. Many Blursoft providers can deposit funds within 1-3 business days after approval. Compared to a bank loan, this is significantly faster.
- No credit check or collateral is needed. Blursoft advances do not require great credit or assets like a home/vehicle as collateral. This makes it more accessible for businesses that can’t qualify for loans.
- Flexible repayment. Repayments are based on daily credit card sales, so payments adjust automatically with cash flow ups and downs. There are no fixed monthly payments.
- Higher overall cost. Because of fees, total repayment will exceed the amount borrowed. This makes it more expensive than loans if paid off quickly.
- Reliant on steady sales. Repayments rely on daily credit card income to cover the percent held back each time. Business downswings may result in an inability to repay on time.
- Not for major losses. While good for one-time expenses, Blursoft advances are less suitable than loans if large capital is needed due to uncertain repayments impacting cash flow.
Alternatives like bank term loans have lower total repayment costs due to interest rates. However, the application process takes longer and requires strong financials and credit history.
In summary, Blursoft advances enable fast access to funds without credit checks but have higher costs than loans. They work best for short-term cash flow needs, not long-term losses or investments. Proper evaluation prevents unsuitable usage and debt cycles.
What are the costs of a Merchant Cash Advance from Blursoft?
Blursoft charges a fee in addition to the advance amount, called a factor rate. This fee plus repayment amount can result in effective annual rates as high as 300-500%, making it a very expensive funding option.
When should a Merchant Cash Advance from Blursoft be considered?
It provides fast access to cash but has high costs. It may be considered for short-term needs if other financing isn’t available, but the business must be able to afford the repayment terms.
What happens if I can’t repay a Merchant Cash Advance from Blursoft?
Missed payments risk penalties, Collection agency involvement, Damage to business credit, and Potential legal action. Communicating issues and negotiating new repayment terms is best to avoid these consequences.
Are there alternatives to a Merchant Cash Advance from Blursoft?
Other options include business lines of credit, installment loans, SBA loans, and credit cards. High-risk merchant accounts also provide financing alternatives for businesses not qualifying for traditional loans.
Merchant cash advance blursoft can be a good way for businesses to access cash quickly. They allow application and funding in minutes through fast services like Blursoft. But it’s important to crunch the numbers and see if the costs outweigh the benefits for your specific situation and goals. Other financing options may better suit different needs. Doing thorough research on repayment terms and factor rates can help ensure these cash advances are a positive experience if you decide they are the right path. Considering alternatives is wise before committing.