Loans For Business – Top Ten Reasons Why Business Cash Advance is a Better Choice
Merchant cash advance (MCA) for small business and medium-sized business cash advance offers a lucrative substitute for traditional loans, especially in tough economic times. Merchant cash advance provides instant cash advance for your business through a simple approval process backed by effective MCA laws and regulations. Here you essentially offer a portion of your credit card revenues to receive an MCA for your business.
Here is a list of reasons why you should choose MCA for your small-scale or medium scale business.
- Fast Turnaround
Unlike traditional loan applications that require weeks and months for processing, MCA providers take just a few days to process your applications.
- Flexible Funding
Providers impose few restrictions on how you can use the money. You can decide how and when you want to spend your funds. You can use the money for any purpose including expansion, rent payments, reconstruction of business sites and inventory.
- Easy Application Process
MCA lenders offer you a fast, effective and streamlined application process. Unlike bank loan applications that are followed up with intrusive questioning, merchant cash advance companies evaluate your eligibility for merchant cash advance using two simple factors. Number of months you have been in business and your monthly credit card statements. You don’t have to provide your financial statements, tax returns or other asset documentation to receive the funds. You can complete the application in a matter of minutes and submit it to loan providers online.
- No Upfront Charges
Unlike traditional loan fee requirements, you don’t have to pay any upfront costs such as application fees and closing costs for your MCA loan.
- High Approval Rate
Merchant cash advance laws do not include low FICO and earlier bankruptcies as denial criteria for merchant cash advance. The only thing that matters is your Visa and Master Card returns which determine whether you are eligible for MCA or not. Your poor credit history holds little value.
- Merchant Cash Advance amount proportional to your business performance
Lenders use their own standard equation that measures your business performance to determine the amount of funds you can receive. Business performance is the biggest determinant of your eligibility. It determines not only your eligibility for MCA but also the amount of funds you would receive.
- No Personal Credit at Stake
MCA do not put your personal credit and assets at stake in case your business venture flops. You don’t need to provide any personal guarantee or collateral. Further, an MCA is treated as a purchase rather than a loan and consequently, has no effect on your future funding. Traditional loans with default risk and risk of abstinence from future funding cannot offer you these benefits.
- Automatic and Easy Repayment
MCA offers you an extremely effective payment method. You simply have to remit a percentage of your monthly credit card receipts to MCA providers. Credit card processors deduct merchant cash advance payment automatically every month. This frees you from the need to deposit cash every month or issue checks to lenders. It also frees you from the hassles of late payment fees.
- Revenue-Based Payment
Not only is the merchant cash advance repayment system easy, it is flexible and changes with your business performance. Since repayment amount is a percentage of revenue, you pay small amounts in periods of low revenue and big amounts when times are good. Thus, MCA providers offer you all the resources and conveniences your business needs to flourish.