Banks are everywhere. These gigantic money keeping, lending, and liquidizing behemoths are present and operate in almost all parts of the world with their various extending branches and debt generating schemes. Money is debt, because every time you take a loan from a bank, the bank issues debt, hence creating money. The money never existed before you asked for it, and yet you have to pay it back with real money and with added interest.
So, you might be wondering how people still prefer banks, when they just leech money off people one loan at a time. The answer here is; power. Banks maintain more power and monopoly over every other means of money lending options. And yet, because of the propulsion of the internet age, a true age of freedom is slowly starting to wipe bank’s shrouds from over our eyes.
Let’s talk about one of these non bank lending options. This option is directly aimed at business owners who are completely tired and jaded with the tardiness and bureaucracy of banks. It is called the ‘Merchant Cash Advance’.
Merchant Cash Advance in a nutshell
The way this works is the prospective debtor approaches the Merchant Cash Advance lender with his/her non-bank lending proposal. Soon after the acceptance and negotiations with full transparency, the contract is signed upon the agreed terms.
And just like that, the Merchant Cash Advance non-bank lending deal is done. Both the debtor and the lender go their separate ways and the money arrives in either a few short hours or in a couple of days. The repayment starts soon afterward, and a small portion of the debtor’s credit card purchase sales is deducted daily directly from the debtor’s card.
The debtor uses the money with his/her own choice. The lender never has to worry about receiving payments as the payments come directly through the credit card purchases of the debtor’s customers. Even though the interest rate is higher than that of banks, it is still a better and more lucrative option for business owners to receive non-bank lending.
Merchant Cash Advance v/s Banks
Let us take a look at the difference between the given categories. So that you can yourself decide if you agree with us on the subject of Merchant Cash Advance being a good non-bank lending option, which even surpasses the zeal of banks:
- Ease: While the loan process of banks is littered with many formalities and exhausting documentations and meetings. The whole process of Merchant Cash Advance is developed to be easy and transparent.
- Speed: The banks are known for their tedious and ponderous proceedings. They refuse to understand the very concept of urgencies in business. But in Merchant Cash Advance, a businessman is standing at both ends. So, they understand that time is money.
- Future aspects: While banks are holding their breath in the upcoming Blockchain revolution because the very intervention of Blockchain will result in the end of banks and increase non bank lending. Merchant Cash Advance rejoices, as it will flourish more than ever in a Blockchain dominated money exchange.