Are you in need of funds to stabilize your business and wondering which business loan would suit you best? Why not try the Merchant Cash Advance loan.
Finance-savvy businessmen world over find the merchant cash advance option a highly profitable one. This is because it is devoid of the usual hassles that accompany taking a loan.
And the best part of merchant cash advance is it is merely an advance as the name suggests and not a money loan in the real sense. It is an advance that is extended depending on the future sales and revenue a business incurs. Let us delve more deeply into the reasons on why MCA is ideal for your business.
Time is a scarce commodity in business and which no entrepreneur would want to waste by spending time on a lengthy business loan process. The merchant cash advance is a very simple process because
- The entire loan process is free of hassles and pretty quick.
- The application process is mostly online, so you can fill the form and upload it from anywhere and at any time that is convenient for you.
- The application form filling and submission of necessary documents takes just a few minutes to complete.
- There is absolutely no laborious paperwork involved.
Flexibility in selecting the business loan amount is a big advantage merchant cash advance loans offer. Small businesses can avail an amount as low as $2,500 to as high as $ 250,000. A customized option for financing is also made available depending on the card settlement done on a monthly basis.
For businesses that see a consistent inflow of cash via card sales, and those with investment needs for the short term will find the merchant cash advance a perfect choice.
Pay as your earn
When it comes to merchant cash advance loans, you will not be restricted by the monthly EMIs that a traditional business loan requires. The card swipes based merchant cash advance loans have advantageous loan repayment terms.
A business can choose between a short six-month repayment and a longer 12-month term. Thus the merchant is not under undue pressure to pay back the advance. This convenience is a much-needed relief for businesses that see a flexible cash turnaround.
The repayment depends on the volume of sales done. So, during a dull season, you can opt for repaying fewer amounts and increase the payment amount during a good spell. The fortnightly and weekly installment choices offered further make MCA an innovative loan alternative to choose.
Transparent and customized
Since the needs of each business vary, looking for a business loan that is tailored to meet the specific needs of the business is vital. In this context, a merchant cash advance loan is a prudent choice. A small business will receive the precise capital inflow it had aimed at with the added benefits of
- Convenient repayments
- The entire cash advance process is transparent with no hidden fees.
- The process does not include pre-closure penalty
- Processing fee is very low at around 2% of entire loan amount
- Quick access to cash ensuring the much-feared credit gap is avoided
In short, with a merchant cash advance loan, your business can grow without the debilitating presence of financial barriers.
You don’t need collateral
With a Merchant cash advance, you need not worry about losing your property. These loans are basically of unsecured type. Unlike traditional loans which require you to put up collateral, these cash advance loans are based purely on sales done via credit cards. If your business has a strong sales record, your chances of getting a merchant cash advance are very high.
And you need not pledge your home or asset as security. In case you default on the payments, you need not worry about losing your property when you avail a merchant cash advance. While you need to provide a written contract as personal assurance making you liable for the amount borrowed, the risk is not as high as in a traditional business loan.
Bad credit? No worries
For many small businesses, bad credit has been a sore point. The ups and downs of the market affect these kinds of business the most. From dwindling market value and low sales to bad credit the list of woes they face is endless. While big corporations have plenty of cash to dip into at times of crisis, it is the small businesses that flounder at the slightest downturn. The bad credit such businesses inevitably incur is one major reason.
A merchant cash advance provides huge cash inflow for such businesses with future sales as security. The cash advance business loan ignores bad or poor credit score while advancing the money needed. This is a chief benefit for small-scale businesses under huge cash and credit crunch.
Approval rate is high
Small businesses that are struggling with mounting financial burden will find the merchant cash advance highly beneficial. The dire financial straits they are in will prevent them from availing a business loan the conventional way. Most lenders and banks refuse outright to lend money and if they do offer it would be at a very high-interest rate.
However, companies that offer the merchant cash advance facility have high approval rates. This helps merchants to secure the capital they need easily, instead of trudging from one bank to another in search of an agreeable lender.
After everything said and done, you need to ascertain that a merchant cash advance is what your business wants. If you are in a great cash crunch but have sufficient cash inflow every day into your merchant account, a MCA is the perfect business loan for you, provided your need justifies the huge expense of taking the advance. And if your business sees plenty of credit card sales routinely but has poor credit, availing the merchant advance will be profitable. But ensure you do your research well and find reputable companies that offer the best rates and easier advance processes.