Merchant Cash Advance: An Outstanding Form of Alternative Lending

merchant cash advance alternative lending

Lending has evolved since its beginning with traditional lenders such as banks being the most renowned. With a growing number of small businesses owners, comes an increased demand for lending options that are responsive to their needs. Traditional lenders have been known to be hesitant in providing loans to small business owners. This situation has been addressed with the increasing popularity of alternative lenders such as merchant cash advance (MCA) providers.

Alternative Lending is being preferred by many small business owners

MCA companies are being preferred by many small business owners despite their costly nature. But it seems cost can be overlooked when a service is provided in the most efficient, prompt and convenient way to the interested clients, exactly what MCA providers are all about. Their approval rates are also quite high which makes them be a reliable source of external funding in times of a financial crisis.

After qualifying for a MCA, a lump sum will be disbursed to you and you will be expected to repay the amount based on your daily credit sales. The total interest accrued from the loan could range from around 10 to 100% but most MCA companies charge an interest of about 25%. A fixed percentage of your daily credit transactions as a business will be deducted. This means that you will have to part with higher amounts on days with high credit transactions while you will be left with enough funds to meet your working capital needs on days with a low volume of credit sales.

Qualify for a merchant cash advance alternative lending

In order for a business owner to qualify for a merchant cash advance, they have to be an established business with at least 3 months of experience in the business. You will also have to provide a financial statement of your venture, a history of your credit transactions in the near past as well as an estimation of your future credit sales. It is worth noting that you won’t need to provide any form of collateral in order for you to qualify for a MCA. Those with a history of bad debts can comfortably apply for a MCA from the various MCA providers.

The nature of the response from the MCA companies is quite prompt relative to what a business owner will face while dealing with the traditional lenders. It takes about 3 days for a loan application to be reviewed and approved and in some cases, you can even have your MCA request being approved and disbursed within just a day.

MCA’s are useful in helping business owners meet their urgent financial needs. You could either have an inadequate working capital to run your business, or you might be thinking of expanding or upgrading your operations…all these can be met by applying for a merchant cash advance loan. The MCA providers are quick to act and you can get the cash you need in good time to meet most of the financial obligations.

Don’t hesitate to approach the MCA companies for merchant cash advances, they have simple loan application procedures, high approval rates, and their repayment schedules are sustainable in nature. I hope this has been helpful, regards.


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