There are a lot of reasons why businesses need loans. Some companies have to get financial assistance just to get started. The money can be used to secure the business location or to purchase equipment that is necessary for production. Some businesses apply for loans to take care of a debt quickly, or to cover operational costs when clients pay their invoices late. If you’re an ISO (independent sales organization) and want to know how you can assist those in your network, it may be a good idea to offer direct cash loans options. One of the most practical direct loans in the market these days is the merchant cash advance, also known as a MCA.
When you provide resources for business owners to get a MCA, you could be helping them find a stress-free way to get the cash they need in a short amount of time. There are some MCA lenders that can offer the funds on the same business day the application is received, which is definitely a plus for companies who are in tight financial situations and need to cover expenses as soon as possible. Direct cash loans that come from a MCA lender are also beneficial for companies that don’t want their credit scores to be a form of loan qualification. Some businesses are in the process of paying off debts that affect their credit score and don’t want to have inquiries on their credit report. Merchant cash advances don’t require a high credit score, but businesses should have a score of at least 400 for most lenders to consider their applications. Of course, the purpose of the loan and the success of the business overall will also be taken into consideration when MCA lenders are going over loan applications from business owners.
Direct cash loans are also appealing for many company owners because collateral is not a requirement. This means that businesses won’t have to surrender their most valuable items to satisfy the loan. The repayment process is usually pretty simple as well. Companies will have a small percentage of the loan amount taken from each credit or debit card sale, or the business can request that the lender take a small amount from the company’s bank account on a regular basis until the loan is repaid.
If you want to offer direct cash loans to the business owners that are in your network, you’ll need to connect these company owners with the MCA lenders that can best meet their needs. This usually means that most of the communication concerning the loan will involve you as the ISO, and you’ll be able to convey messages to both parties. You’ll also work with both entities throughout the loan application process, to make sure that everyone understands the terms and agrees to them.
Keep in mind that you can also charge a fee any time you facilitate the direct cash loans process between company owners and MCA lenders. Meet with your financial team about the benefits of providing MCA resources today.