Industries that are capital intensive need a huge amount of financial investment. The technological advances mean that those who want to apply the most recent technologies to their business must replace their equipment. A small scale business might not be in a position to meet such extra expenses, and looking for a source of equipment financing is inevitable. Merchant cash advance providers are suitable, albeit relatively costly equipment financing lenders.
Getting a loan from the traditional lenders to meet your equipment financing needs could be quite disappointing. Their decline rates are pretty shocking, it is reported that traditional lenders don’t approve close to 60% of small scale business loan applications. Coupling this to their long and strenuous application procedures pushes away those who need to find prompt and responsive sources of equipment financing. MCA providers come in handy in this as their loan application process is simple and short. You will also enjoy their high approval rates to provide the cash that you direly need.
The loan application process when dealing with MCA Companies entails filling out online forms for most of the recent MCA providers. You will need to provide your business financial statement, the credit card sales history of your business as well as the projected future credit card sales. As a client, you don’t need to provide collateral as is the case for the traditional lenders. Upon approval, you will be advanced with a lump sum that you can utilize to meet your equipment financing needs. You may choose to use the cash as you wish since MCA providers are not keen on how you spend the amount that you have been advanced.
Repayment of the cash advance is a cut of your daily credit sales, this being based on a fixed rate. The interest rates that MCA companies realize from your equipment financing could range from 10% to 100% which makes this option to be considered to be the most expensive form of alternative lending.
Business owners might have equipment which has broken down and the fastest way of getting a replacement is by applying for a merchant cash advance. You will get equipment financing in a matter of days to keep your business running. Most of the lenders shy away from offering equipment financing due to the unpredictable nature of industries which use them. It is good to mention that there are MCA companies that have specialized in providing equipment financing loans to those in unstable industries. Check out the online sources for a MCA provider near your location who provides such services.
Besides using a merchant cash advance in equipment financing, a business owner can also utilize this cash to meeting other business expenses. You can boost your working capital, get extra stock and even hire more employees using funds obtained in this manner.
Merchant cash advance companies are rising in popularity due to their accommodative approach in the lending process. With high loan approval rates and the prompt nature in which they operate using them as an equipment financing lending option could be a timely and prudent decision for short term loans.