Independent sales organizations (ISO) have a very important role to play in helping small businesses get ahead. They can serve as the bridge between business people and lenders, and the organization can play a vital role in helping companies to get the supplies and marketing tools they need to become successful. In addition to all the other great services they provide, it may be time to think about adding merchant cash advances (MCAs) to their list of benefits. These cash advances provide small business working capital to companies, and the transactions can prove to be beneficial for these ISOs as well.
All About Merchant Cash Advances
Merchant cash advances are appealing to businesspeople who want to get funding for their businesses without applying for traditional loans since these loans will often require business people to submit their credit reports in order to be approved. When MCAs are offered to a customer, the business will sell a percentage of their future debit or credit card sales to the lender in exchange for a lump sum that can be used for company operations.
These company owners contact the lender of their choice and present a proposal to detail exactly how the funds will be used. There’s a good chance that the proposal will be accepted, and the Independent Sales Organization will work as the liaison between the lender and the debtor. The lender and the business owner may also have to enter negotiations in order to come up with terms that are acceptable to both parties, and can work to make sure that the MCA approval process goes smoothly. They’ll also charge a fee for their services, which brings in profit for their company while assisting owners with realizing their dreams.
Another reason why it’s beneficial for you to offer MCAs to businesses is that you are not government-regulated as an Independent Sales Organization. When you’re offering working capital to companies, you don’t have to follow all of the strict rules that sometimes come with getting a traditional loan. So, company owners who don’t want their credit to be impacted or don’t have enough credit to be approved for a loan are people who you can offer these services to. You also have the freedom to implement regulations as you see fit, which means a number of companies can use your services with the assurance that they will be able to meet the terms of the cash advance.
When an Independent Sales Organization offers working capital to companies, they’ll be able to give the business owner several options for funding, since they have an extensive network of contacts, including banks and financial institutions. They may also be able to get in touch with independent lenders and business owners who are willing to fund cash advances. It’s up to you to establish trust between the business owner and the lender, and since you’ve already formed a professional bond with several lenders, these lenders will trust that you’re bringing them reputable companies to do business with.
These are just some of the reasons you should give serious thought to adding MCAs to the list of services you provide to customers. This financial option not only brings in more money for your business but can prove to be very helpful for small businesses as well.