Owning a business is not as simple as it sounds. A business owner has to be organized in the allocation and utilization of resources to ensure that the output surpasses the input. In simple terms, the profit margin needs to be a reasonable and a relatively sustainable one. The business environment can be harsh at times which could result in losses. In order to sustain your business, looking for alternative sources of business financing becomes paramount.
Trying out a traditional lender could end up being futile especially if you are a small business owner. Traditional lenders such as banks have a high decline rate for small business loan applications. You will have to identify more responsive lenders for business financing. Merchant cash advance providers, which have been rising in popularity in the recent past, could act as conventional lenders.
Though many people consider MCA providers to be the most expensive sources of business financing, there are a couple of reasons why a business owner might settle on them. The prompt nature of their services makes many companies reach out to them first. Compared to a bank loan which might take week or even months for it to be approved, a merchant cash advance could be processed in just a few days.
Additionally, getting business financing solutions from MCA companies entails following simple application procedures. You ought to be an established business with at least three-months of experience in the services you provide. Other requirements are providing a financial statement of your business, your history of credit sales as well as your estimated credit sales in the near future. For this option of business financing, you don’t need to provide any form of collateral.
In case you want to expand your business, improve the quality of services you provide or revise the salaries of your employees, the quickest way of getting extra business financing is from MCA companies. The application and duration for approval of your loan will just be sufficient to precisely meet your timeline. You might also find a business opportunity that has risen out of the blues when you are limited in terms of funds. Applying for a business financing loan from MCA providers will be quite an appropriate decision.
The repayment schedule is also something that will make you opt for a merchant cash advance as a source of business financing. The interest is based on a fixed rate that is charged on your daily credit sales. MCAs are not strictly considered to be loans, it is best to view them as an investment on your business’s future credit sales. This makes them be immune to any interest caps by the law. The range of interest they charge could range from 10 to 100% which highlights their expensive nature.
Getting a reliable source of business financing is quite a challenge for most small scale business owners. Getting that cash from a MCA provider could save you plenty of time since the provision of cash is quick after a simple application process.