Businesses are constantly looking for practical forms of funding that will help them keep their doors open and continue providing quality products and services to customers such as bad credit direct lenders. However, it can be difficult for some companies to get a loan for a variety of reasons. That’s where you come in as an ISO (independent sales organization). You can provide the facilitation that is needed to help companies get the necessary funding for running a business while connecting lenders with the customers that are in need of their services.
One of the best bad credit direct lenders for many companies are those that offer merchant cash advances (MCA). These types of advances are ideal for companies who don’t want to use their credit score as criteria for getting a loan. In most cases, the MCA lender will want the business to have a credit score that is no lower than a 400. However, this shouldn’t be too big of an issue for a company that has been operating for a few years and has paid off a few debts. The MCA lender also doesn’t have a long waiting period for loan approval. This is a huge plus for businesses that need cash right away. Some lenders will offer the cash advance in a few business days, but there are some MCA companies that will give businesses the necessary cash in just a few hours.
MCAs also don’t require companies to have to put up items for collateral. A new business will likely see this as a benefit since it can be difficult to have to put assets on the line in order to satisfy the terms of a loan. If the valuable items are taken away, the business won’t be able to thrive, which could put the company in even further debt. Bad credit direct lenders that provide MCAs only require the loan to be paid back in small amounts with each credit or debit card purchase that the company makes. The business can also request that the amount of the loan is repaid through small payments that the MCA lender will make through the company’s bank account.
As an ISO, you can help to connect the lender and the business owner. This means that you can communicate with both parties to provide information and to be the liaison during the loan approval process. Some companies will prefer that you are the only point of contact between the company and the lender, which means that you have to be very familiar with both entities in order to offer the right information.
When you’re an ISO, you likely have relationships with a number of bad credit direct lenders, and you can bring in more business for these companies while assisting business owners in need. Of course, this can also bring in more profit for you, because you can charge a fee each time you secure a deal between a lender and a business owner. Talk to your financial team about the benefits of offering MCAs to customers today.