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A line of credit is a flexible borrowing arrangement where a lender, usually a bank, provides access to a certain amount of money, up to a set limit. Borrowers can withdraw funds as needed, repay, and then borrow again during a specified period. Interest is charged only on the borrowed amount. It's a revolving credit, meaning the available funds replenish as you repay. After a draw period, repayment begins. Responsible use is crucial to avoid debt accumulation.
Flex financing is a versatile borrowing option that provides customizable loans for businesses. It allows borrowers to adjust loan amounts, repayment schedules, and interest rates to their needs. Similar to a line of credit, it offers revolving access, where funds can be borrowed, repaid, and borrowed again without reapplying. It's a streamlined and adaptable way to secure funds while tailoring the borrowing experience.
Relieve yourself from financial stress. Choosing a reverse consolidation can help you to regain control of your cash flow. If you do not meet your obligations under the MCA, it may damage your business in ways that are difficult to recover from in the future. If we think about a reverse consolidation in regards to merchant cash advances, we can see that it represents converting a merchant cash advance into a larger loan with a longer repayment period and a lower average monthly payment.
When you receive a merchant cash advance from 1826 Capital, we’ll provide you with a lump sum of capital in exchange for a percentage of your business’s future sales. That means you’ll receive working capital now, and we’ll receive a percentage of your sales until the amount of sales we have purchased has been received. Our Funding Advisors will work closely with you to create a funding plan that will help jumpstart your business’s growth without maxing out your cash flow. We offer both fixed and flexible repayment schedules, and there’s no fixed term.
A term loan is a fixed amount of money borrowed from a lender that is repaid over a specified period, typically with regular monthly payments. It has a set interest rate and is often used for specific purposes such as business expansion, equipment purchase, or personal projects.
Consolidation is the process of combining multiple debts or financial obligations into a single loan or account. This aims to simplify repayments by replacing various creditors or accounts with one manageable payment, often with a new interest rate and repayment term. It can help streamline finances and potentially lead to lower overall costs.
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