Today business owners want almost instant funding and loans they can get hands on without having to go through several thorough checks (credit performance in particular) and complicated underwriting procedures. New-age merchants also like to borrow from alternative lenders who best understand their needs and allow them to settle loans without putting a strain on their finances.
Furthermore, the online shift is changing the borrower’s expectations by the day, and it so happens that most alternative lenders can have you apply, scrutinize you and offer you funding over the internet.
Merchant Cash Advances
Perhaps that explains why more and more retailers are now seeking Merchant cash advances— they seem to be the number one alternative business loan for micro-business owners. MCA providers are meeting merchants at their point of need, no wonder they record higher approval rates today compared to conventional business bank loans.
Did you know you can get approved even if you have a score lower than 500? Plus, carefully prepared Cash advance offers have forgiving payment schedules.
Alternative Lenders Vs Banks
And while banks would have more power to sell more loans online than alternative banks if they wanted to, most of them are still not willing to work with small businesses. Even if they are, it is difficult to obtain a micro-business loan from a traditional lender. While Banks have restrictions in the range of industries they accept- and even classify other sectors as “high-risk,”- most alternative lenders are ready to help these merchants. Lenders like First American Merchant specialize in ensuring business listed as high risk get funding in exchange for their potential future sales.
The ability to secure a cash advance for your company even with bad credit is a revolution for merchants who have poor credit and may need some time to build their scores.
Business Cash Advances Explained
With business cash advances, credit scores do not matter, you get accepted as long as your business has future sales the lender can depend on. In other words, MCAs aren’t short-term loans or high-interest advances but a simple deal where the lender purchases the borrower’s future sales at some discount. It is for the parties involved to settle on what amount of sales are being bought and at what discount. Approval is almost instant, and funds are accessible in as soon as 72 hours.
Make sure your cash advance provider has flexible and straightforward programs with no tax returns or financials needed.
The Advantages of MCAs include;
- Quick funding
- High acceptance rates and hassle-free renewals
- No collateral needed
- Easy settlement plans
- Revenue-based deductions
- No credit checks
Partnering with the right cash advance provider is a good idea. It is also advisable to accept credit cards/debit cards because research has proved over and over that customers spend extravagantly while using credit cards and often don’t carry cash. Professional merchant services provider can set you up with affordable processing solutions.