Cash Advances Offer Increased Profit
April 27, 2012 at 9:05 AM
In the current economy, small to medium businesses need loans to help bolster their pockets during lean times. Banks have become hesitant to lend. Significantly increased interest rates and decreased lending options have left businesses with few choices to obtain much needed loans. Cash advances are a viable solution to this issue.
Cash advances are loans that are repaid by the merchant's processing. They require no collateral or credit checks. This is an excellent tool to use to upsell better systems and value added services. In addition, they are a low liability way for the merchant to obtain much needed cash. Cash advances are perfect for seasonal merchants with high volume "in season" months, as well.
Cash advances also provide an opportunity for an agent to receive additional commission. Cash advance companies give commission splits to agents who sell the advances. The higher the advance, the higher the commission. It also creates an opportunity to upsell equipment which yields commission, as well. For instance, at MPI we use cash advance loans to frequently for our numerous seasonal merchants. The volume of these seasonal merchants satisfies the cash advances in the summer months quickly as the volume per month for some of these merchants range from 80,000 to 1 million.
MPI asks agents to offer cash advances to many seasonal merchants. We have quite a few restaurants in beach resort areas that opt for cash advances in the fall to aid in basic business functions during the winter months. The merchants repay their cash advances within the first two months of the summer months due to their significant volume. In addition, every year that the cash advances are granted, the MPI agent who coordinates the cash advance receives a commission.
Offer new and existing merchants the chance to receive a cash advance loan. It will allow them to reinforce their coffers and increase your sales commissions.
If you’d like to learn more about becoming an MPI agent, please visit our MPI Agent Program Page .