How Does Business Funding Work?

The mechanics of business funding will be dependent on the source of the business funding, as different products will have varying repayment plans. In most cases the provision of business funding is for growth and as such the lender or firm advancing the cash sum will have its own terms of repayment.

In some cases where a business loan is the chosen product, the loan will need to be repaid over a fixed term, with an agreed APR or interest rate. In the case of some alternative business funding a business may receive a merchant cash advance in which case a percentage of credit and debit sales will be used to repay the advance. In all cases failure most business especially, smaller business will require funding for growth

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