Small business owners are looking for ways to fund their companies in an efficient way while making sure that their credit scores remain intact, and they find that using direct online loan lenders are quite valuable. This is just one of the reasons that you as an independent sales organization (ISO) should offer financial products to small businesses that will help them thrive. One of those products is the merchant cash advance (MCA), and this tool can offer a number of benefits for the businesses you work with. Providing MCAs is also beneficial for your ISO since you’ll take out a small percentage as a service fee each time you complete a transaction.
Independent sales organizations like you have a large network of contacts that includes independent lenders, business owners, banks and other financial institutions. These large networks can help you act as the middleman between the merchant cash advance lender and the business owner. The direct online loan lenders can provide all the necessary terms for the debtor, including the timeframe in which the money needs to be paid back.
When you work with direct online loan lenders, you’ll be establishing credibility between the two parties. You need to be seen as dependable by both the lender and the debtor so that these organizations will do business with you again, and refer you to others. You may also serve as the initial connection between the two parties since you can hand-pick the organizations that will pair well together based on their size and business objectives. It’s also up to you as the independent sales organization to promote communication between the two parties. Depending on the companies you’re working with, you may be the only source of communication that the business owner and merchant cash advance lender used. This means that you’ll have to relay messages efficiently, and it’s another great way to boost your reputation.
Since you’re the independent sales organization, you’ll be in charge of carrying all transactions that occur between the debtor and the lender. From the time that the lump sum is transferred from the MCA lender to the business owner to the time when the business owner takes a section of their credit card payments to repay the cash advance, you’ll be the one facilitating the transaction. Again, since you’re taking a cut for yourself in the process, you can benefit from the process of working with direct online loan lenders as well.
Of course, you also have the option of selling merchant cash advances to the business owner directly. This will enable the business owner to increase profits and help the business to thrive at a faster rate. With a merchant cash advance, there is no third party lender, since you as the ISO will act as the lender. This means that the extra cut that would normally go to the lender can go back into your company and help your organization to run more efficiently. You’ll also be able to enjoy a longer professional partnership with independent lenders, and you and the business owner can forge a great relationship that will lead to further financial opportunities.