There has been an immense growth of small scale businesses and with that comes the attendant financial challenges. Traditional lenders are not willing to support most of the small scale businesses due to the unpredictable and unstable nature of such ventures in comparison to a large scale businesses. This creates a need for lenders who are more accommodative to the financial needs of small business owners. Merchant cash advance companies are a suitable choice for those in need of a cash advance.
Merchant cash advance companies usually offer a small business owner a lump sum which is to be paid in the future based on the daily credit sales. The limits of the cash advances will depend on the individual MCA Company and you can do an online search of the best option for you. A fixed percentage of the daily business credit sales transactions will be deducted and remitted to the MCA provider. Their rates are relatively high ranging from about 10 to 100% but their prompt and reliable nature make many business owners prefer their services.
For you to qualify for a cash advance there are certain requirements which you ought to meet. A business owner will have to provide a financial statement of the business, a copy of the history of credit sales as well as the projected credit sales in the future. No form of collateral is required and having a bad debt history doesn’t disqualify from getting a cash advance from the merchant cash advance companies.
You will enjoy higher and more predictable loan approval rates compared to the traditional lenders. After applying for a cash advance to a MCA provider, you will get a response in a matter of days, at most three days with some cash advances being issued in just a day. On the other hand, traditional lenders such as banks are known for their higher decline rates for most of the small business loan applications they receive. This is estimated to be at a whopping 60% of all small business loan applications.
The cash advance repayment schedule for most MCA companies is a sustainable one. Considering that a fixed percentage of the daily credit sales will be deducted to repay the loan, days with higher sales volumes will mean that higher amounts are deducted while days characterized by low sales volumes will leave the owner with enough cash to run the business. This is way better compared to the requirement by most of the traditional lenders who will need you to submit a fixed amount at every month irrespective of the performance of your business.
If you are in need of urgent cash to meet your recurrent expenditures, pay your employees in time or even undertake a business expansion, seeking for a cash advance from the MCA providers will be a step in right direction. They are quite prompt and there are some who offer customized services to businesses in a particular industry. Avoid the hustle by applying for a cash advance from Merchant Cash Advance companies.