Online businesses have become a well-accepted business model these days. Long gone are the days when products and services can only be sold in brick and mortar stores. In other words, people do not buy solely from physical and concrete stores anymore. We already have thousands, if not millions, of enterprises selling both products and services in the Internet.

Despite this development, a business should never do away with having a business office. Offices are a must-have for any business businessmantalk.com. Having an office brings forth many advantages to the entrepreneur. Here are the top 5 reasons why having a virtual business office is good for the enterprise.

1. It provides a business address for business correspondence purposes. Every business, at some point and it may be often, needs to send business letters to clients, suppliers, government offices, media, and many other entities that the business needs to formally communicate to. Although emails nowadays are highly acceptable, businesses still need to send the usual business letters – in hard copies. That is why a business address is very important.

2. It complies with the legal requirements inherent in doing business. A business address is needed when applying for permits to operate in a locale. It is also required when drawing up memorandum of agreements or contracts with clients.

3. It helps the business build credibility and trust. An entrepreneur always needs to meet with clients, especially those within its proximity to establish credibility and trust. Although the number of pure online businesses has ballooned to an incredibly large number, not being able to provide a business address raises doubts and questions in the minds of our clients. Putting it in another manner, not being able to give business address information will cast a cloud of suspicion upon us. Suppliers and financial institutions will have second thoughts in dealing with us, especially when we are seeking for credit arrangements, because of the lack of this extremely important aspect of a business enterprise. What is worse, customers may hesitate to entrust us their hard-earned money and buy from us because they will think that we are simply a fly-by-night business and they would not have any idea where to find us in case they have concerns.

Merchant cash advance loans, sometimes referred to as factoring loans, are based on the amount of average credit card volume a merchant or retail outlet, processes over a three to six month period. Any merchant or retail operator that accepts credit cards as payment from customers, including Visa, MasterCard, American Express, or Discover, is virtually guaranteed an approval for a merchant credit card advance. The total amount of cash advance that a merchant qualifies for is determined by this three to six month average and the funds are generally deposited in the business checking account of the small business within a seven to ten day period from the time of approval.

A set repayment amount is fixed and the repayment of the cash advance plus interest is predetermined at the time the advance is approved by the lender. For instance, if a merchant or retailer processes approximately $1,000 per day in credit cards from its customers, the monthly average of total credit cards processed equals $30,000. If the merchant qualifies for $30,000 for a cash advance and the factoring rate is 1.20, the total that would need to be repaid is $30,000 – plus 20% of $30,000 which equals $6,000 – for a total repayment amount of $36,000. Therefore, the merchant would receive a lump sum of $30,000 cash, deposited in the business checking account, and a total of $36,000 would need to be repaid.

The repayment is made by automatically deducting a pre-determined amount of each of the merchant’s daily future credit card sales – usually at a rate of 20% of total daily credit cards processed. Thus, the merchant does not have to write checks or send payments. The fixed percent is simply deducted from future credit sales until the total sum due of $36,000 is paid off. The advantage to this type of financing versus a commercial bank loan is that a merchant cash advance is not reported on the personal credit report of the business owner. This effectively separates the personal financial affairs of the small business owner from the financial affairs of the small business entity.

A second advantage to a merchant credit card cash advance is that an approval does not require a personal guaranty from the business owner. If the business is unable to repay the merchant cash advance loan in full, the business owner is not held personally responsible and cannot be forced to post personal collateral as security for the merchant advance. The owner removes the financial consequences that often accompany a commercial bank business loan that requires a personal guaranty and often forces business owners into personal bankruptcy in the even that their business venture fails and cannot repay the outstanding loan balance.

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