Merchant Funding Offers Options for Seasonal Businesses

Restaurants. Holiday boutiques. Sports stores. All are seasonally-bound businesses and all require special financing options to remain solvent. Merchant funding is certainly a fave with these and other non-seasonal businesses looking for start-up or expansion capital. Here’s how merchant funding financing works.

Merchant Funding and Other Options
AllBusiness reveals the characteristics of merchant funding that make this form of financing so attractive to those businesses that disdain the traditional lending process. The money advance is based on potential credit card sales. That means no down payments, no APRs and no credit checks. The downside is that you’ll probably have to open up a merchant account with your vendor.

Canadian Merchant Funding Streamlines
Canada has made the merchant funding process even easier to attain by tying in their lending with a collection of small business banks. Businesses no longer have to change banks--or even account numbers--when they apply for merchant funding. All requests go through a central processing entity that dispenses capital through existing accounts.

Refining the Merchant Funding Strategy
As the merchant funding process ages, the process is beginning to mold to the needs of small to mid-sized businesses. One way to illustrate the change is through flexible lending criteria. Businesses must simply show up to a year of credit card sales receipts and proof that the business isn’t bankrupt or in serious financial disarray.

Merchant funding has been around for ages in some form or another. But recent developments in the industry are making it an increasingly attractive way to earn financial backing.