A business owner can finance their business from a number of funding sources. When the business’s cash reserves are depleted in the face of urgent financial business needs, finding a reliable source of business loan funding will be the only step to take to help an owner out of a tough situation. Business loan funding could be either from traditional lenders or the new alternative lenders such as merchant cash advance providers.
Merchant cash advance companies are considered to be among the top non-bank lending options. This source of business loan funding came about due to the weaknesses of traditional lenders. It is reported that banks, which are among the traditional lenders had high decline rates for small business loan applications, estimated at about 60%. This coupled with the fact that one may need to undertake long and strenuous application procedures discourages many from trying out the traditional lenders.
A merchant cash advance is a lump sum amount that a business owner receives from a MCA provider. It’s various interest rates doesn’t seem to deter most of the small business owners from approaching them which implies that there are additional benefits that they get from them.
The repayment schedule seems to be favorable and convenient for most of the small business owners who are in search of business loan funding. You need to part with larger amounts on days with high credit sales since the rates are fixed on what your business earns from the daily credit sales. It is good to keep in mind that days with low sales volumes will leave you with enough earnings to keep your business running. This can’t be compared to the inflexible repayment schedule of the traditional lenders who require that you submit fixed amounts at the end of each month.
To get a merchant cash advance to act as business loan funding, you need to follow simple application procedures. Since most of the MCA providers have websites, you can apply for a loan from any location and can expect to receive a reply. The requirements are usually stated but you ought to provide your business’s financial statement, the credit sales history of your venture as well as what you expect to earn in future. These are used to assess your sustainability but as mentioned earlier on, their approval rates are usually high, although it sure beats going through a traditional bank loan.
If you are a business owner who is in search of a business loan funding to expand their businesses, acquire new equipment or even increase the number of your employees, a MCA provider could be your run to a quick solution. They are quite responsive and there is no follow up on how a client utilizes the cash. Though MCA companies have been considered to be the most expensive, their convenience, promptness and the reliability they offer to their clients all speak volumes about the very same MCA companies.