Small business owners are increasing by the day and one needs to take into account their needs as well. Financial constraints characterize most small businesses and this creates the need for a small business lender they can seek help from, from time to time. The traditional lenders such as banks are hesitant in providing loans to small business owners, but the alternative lenders are accommodative and really helpful to small scale business owners.
Merchant cash advance providers are taking many by surprise due to their increasing popularity in the recent times. If you are a businessman who is looking for a small business lender, MCA companies are what you should try out. They are quick and pretty responsive to the financial needs of small business owners providing you with a loan in a matter of days. In comparison to the traditional lenders who consume a huge chunk of a business owner’s time in the loan application as opposed to these small business lenders have simple and fast loan application procedures.
By opting for a MCA company to be your small business lender, you will be offered a lump sum which you will repay using your future credit card sales. The repayment amounts are based on a fixed rate which is applied to the daily credit card sale transactions. This implies that you will pay a huge amount, on days with high sales volumes but you will also be left with enough cash to run your business on days with low credit sales. MCA companies are considered to offer the most expensive loans but this has not deterred many from relying on them.
As alluded to earlier on, most people prefer to use a MCA company as a small business lender for their business due to the simple loan application process. To qualify for a cash advance you will need to be an established business, with about a 3-months experience though this might vary depending on the MCA provider you’ll approach. Besides this, you will be required to provide the financial statement of your business, the credit sales history as well as the projected future credit card sales. What is more is that you don’t need to have any form of collateral to get a loan from this small business lender.
In the event that you are caught in a fix as a small business owner, you can turn to a MCA provider to act as your small business lender. The prompt nature with which they handle their business creates a huge difference between the possible end of a business and the business owner making a great leap with the advanced cash. You can meet your working capital needs by relying on these small business lenders or even choose to expand your business to meet an increasing demand.
All in all, a MCA company could be the most suitable small business lender based on a number of factors that we have looked at. They are generally prompt, pretty accommodative to small business owners and they offer a convenient repayment schedule.