Having clearly-defined terms is essential whenever your business enters into a contract. This is especially true when it comes to repaying a company’s obligations. Streamlining payment processes allows companies to maintain in-depth records of transactions and the ability to maintain accurate, in-depth sales data. It has also enabled businesses to take advantage of the many benefits of merchant cash advances with convenient repayment methods.
You might have never heard of split withholding, but it used to be a way for a business to repay an outstanding merchant cash advance. However, it was never popular as it was an inconvenient and time-consuming way for a company to repay a merchant cash advance. Now, companies like Effective Funding provide repayment options that allow businesses to accurately track their obligations and keep up-to-date records.
Here we’ll discuss just some of the ways companies can repay merchant cash advances seamlessly and without any additional effort on their part. In particular, we’ll cover how businesses can take advantage of Effective Funding’s flexible repayment options.
Daily Fixed-Payment Plans
A daily fixed payment plan is exactly what the name implies. Daily fixed payments allow businesses to repay their obligation on a merchant cash advance in daily installments with a fixed payment amount. More often than not, the payments will remain the same during the course of the repayment period.
Weekly Fixed-Payment Plans
Just like their daily counterparts, weekly fixed payment plans allow a company to make repayments on a weekly basis. In this circumstance, the payment amount also remains the same during repayment.
Fixed-Term Payment Plan
Popularly referred to as the Purchase and Sale of Future Receivable Agreements, merchant cash advance contracts typically reflect the percentage or total amount of current or future receivables purchased from the business. Whatever is owed must be paid back within a fixed timeframe. This method provides a company with all the information it needs, like payment amounts and duration, to make an informed decision regarding a merchant cash advance.
ACH Withholding
Automated Clearing House (ACH) withholding is another way merchants can repay a financing company after receiving a cash advance. ACH withholding is when a financier obtains credit card processing information from the business so it can debit their checking account each day or week. Daily withdrawals allow the merchant to pay small payments automatically. Much more popular than split withholding, this method of repayment satisfies the merchant’s obligation to repay their obligations to a financing company.
Effective Funding: Your Source for Safe and Secure Business Financing
Effective Funding is a leading provider of merchant cash advances. We offer a range of services designed to help merchants navigate this volatile economic environment. Whether you’re looking for funding to start a new business initiative or to cover unexpected expenses, our team is here to help your company thrive. We don’t charge a commission like many of our competitors and will take the time to clearly explain your options when it comes to a merchant cash advance.
As leaders in the merchant cash advance industry, Effective Funding provides same-day business funding so you can get immediate access to the cash your business needs. We also serve a range of industries, including retail stores and companies requiring equipment financing for substantial purchases of machinery. Contact Effective Funding today for more information about how we can help your business!
