When you’re trying to find a reliable source of funding for your business, you’ll likely explore several options, trying to find the solution that will work best for the needs of your company. If you’ve explored the possibility of getting a conventional business loan and aren’t sure if you can meet all the terms, it may be because you’ve been searching for traditional direct online lenders.
Applying for an loan online is often a quicker and easier process than getting a loan in person from a financial institution. In some cases, the process will take just minutes, and you’ll get a decision about your application quickly. However, when you choose to work with direct online lenders, you may find that you’re expecting to list some assets as collateral. This means that if you’re not able to pay the loan back in a timely manner, you’ll have to turn these assets over to the lender until the loan is repaid. When you don’t have the valuable equipment to produce goods, your business won’t make a profit, which means you’ll have even less money to pay the loan back. This could cause you to go out of business and fall deeper in debt.
You may also find that the interest rates on business loans can be considerably high. When you start the repayment process, you could be paying on the interest alone for several months, which means it could take a while to actually repay what you owe. This could put your business behind financially, which means it could take a while for you to get the money you need to fund marketing efforts or upgrade your services.
If you don’t think getting a loan from conventional direct online lenders would be the best move for your business, a merchant cash advance (MCA) could be the best move for your company. With this type of loan, you won’t spend too long paying interest alone, because a percentage of your credit card sales will go to the lender on a regular basis, so you can pay on a schedule that works best for you. The application process is very quick, and you’ll often get a decision in as little as one business day. Some MCA lenders will even get back to you with a decision in just a few hours!
MCA lenders are also different from other direct online lenders because they don’t require you to put any of your equipment or assets up for collateral. While you’re repaying the cash advance, you can keep all of the valuable equipment that you need to continue giving customers the quality products and services that your business is known for. And of course, you won’t have to worry about your valuable items being confiscated from the lender.
If you think that a MCA could help you move your business forward, talk to your finance department head about finding the right cash advance lender for you.