Lending has been a key ingredient in the growth of various establishments. It could act as an external source of funding for the expansion of a business, for the provision of the much-needed working capital or for purposes of upgrading a given business. Small businesses usually encounter challenges when sourcing for loans from traditional lenders. This could be countered by small business owners opting for non-bank lending alternatives available in the market.
By far merchant cash advance providers have stood out as the most preferred non-bank lending option. Although they are considered to be costly in comparison to the other options, they offer services which are prompt and quite responsive to the needs of small business owners. Merchant cash advance companies usually provide one with a lump sum that is to be repaid using the daily credit card transactions. For this reason, those who wish to try out this form of non-bank lending ought to accept credit and debit cards.
The application process is simple and quite easy to follow through with. This is in comparison to the traditional lenders such as banks which have long, strenuous and tedious loan application procedures. In addition to this, traditional lenders such as banks take longer to respond to loan application requests. A business owner who applies for a merchant cash advance will receive the lump sum after a matter of days. On the other hand, banks might take weeks to months to get back to their clients.
To qualify for a merchant cash advance from this non-bank lending option, you stand higher chances if you are an established business. You will need to provide your business’s financial statement, a copy of the credit sales history as well as your projected credit sales in the future. No form of collateral is required during the application process and having a history of bad debts does not ruin your chances of being considered.
Repayment of the merchant cash advance is quite sustainable and reasonable for small businesses. A fixed percentage of the daily credit sales will have to be remitted to the lender. This means that you will remit higher amounts on days when business is good while you will be left with enough to carry on during the low credit sales days. This is quite convenient compared to banks which will require you to submit your loan payments at fixed amounts at the end of each month without taking into account the performance of your business. This might be the reason why many prefer MCA providers as their non-bank lending option.
In case you are in urgent need of cash to meet your working capital needs, expand or even upgrade your business, don’t hesitate in approaching a merchant cash advance company. You can even apply for a loan from the merchant cash provider’s website, meaning that the extra source of funding that you need is just a click away. What is more is that you can do it from any location.
Merchant cash advance providers have become a popular non-bank lending option in the recent past. This can be attributed to their prompt services, their accommodative nature to small businesses with a repayment schedule that is pretty sustainable.
