A lot has been said over the last five years about the booming merchant cash advance loan (MCA) industry. Proponents of MCAs say that they are providing a service that traditional lenders have abandoned – lending small businesses small loans which could be the difference between survival and foreclosure. But critics claim that most MCAs exist only to exploit the desperation of many business owners, and to trap them into loans with astronomical interest rates and fees. Still the industry is growing, and as the economy regains its footing, ISOs who expand into the MCA business have discovered a fantastic money-making opportunity.
Merchant Cash Advance ISO
In order for ISOs to be successful in the MCA industry, they must have the necessary cash to fund a small business. If an ISO has some or most of the money, they will see profits much sooner than an ISO that has to scrape together seed money. Even if ISOs don’t have all the money upfront, ISO managers in the MCA industry note that income generated from cash advances can far exceed the income from most other merchant accounts.
There are other advantages to starting an MCA business. MCA companies believe that owners get to know their merchants better because the application process requires a lot more information exchange. This can create stronger partnership bonds and extend business relationships. Also, despite criticism, small quick loans actually do keep struggling businesses alive. If the business can fulfill their end of the agreement, an MCA is the perfect solution for them if they need a little help to pull ahead.
Finally, there is a great demand for fast, small loans to help struggling businesses. Very few traditional lenders even supply small business loans any more. And those that do, often place excessive demands on merchants like the maintenance of a certain credit score, which many owners simply can’t fulfill.
Now is the time to venture into the MCA industry. Learn more about merchant cash advance ISO opportunities by clicking below