There are several benefits to getting loans from direct lenders, and when you’re an ISO, you can match reputable lending companies with businesses who are in need of loans. The merchant cash advance (MCA) loan is one of the best loans from direct lenders, especially for small businesses, service businesses, and companies that may experience seasonal cash flow issues, but, are they really a viable non-bank lending alternative? Since you don’t have to adhere to the regulations of the government as an ISO, you can provide loan options that businesses may not be able to get from other sources.
Loans from direct lenders that come in the form of a merchant cash advance have a quick approval time. Some lenders take about 2 business days to approve a loan application, and some lending companies will even approve applications on the same business day they are submitted. This is great news for businesses that hit unexpected financial slumps and need cash right away.
Merchant cash advances also don’t require a high credit score. Some lenders don’t use credit as a factor at all, and some of these loans from direct lenders will require that companies have a 400 credit score in order to get approved. In most cases, businesses will have this minimal credit score, since the score is based on the company’s credit history and previous debts. It can be helpful to submit information about the business on the application so that lenders can see what companies plan to do with their finances. Details on the application can also explain the history of the company and the financial successes that the business has experienced. This will let the MCA lender know whether or not loan approval is feasible.
Loans from direct lenders like the MCA are also ideal for service businesses because no collateral is required. This will give business owners peace of mind since the companies won’t have to give up their valuable items in order to satisfy the balance of the loan. When businesses can keep their equipment and still service customers while getting the temporary financial assistance they need, this can keep the company’s cash flow intact while helping the business to get rid of debt.
Once you find the right lenders for businesses in your network, you’ll be the point of communication between the business owners and lenders. You can share some background information with both entities, and help the business owner to fill out the loan application in the most expedient way. You can also work with the lender to make sure that the terms of the loan are clearly stated so that the entire application process will go smoothly and as quickly as possible. There are even some cases when you’ll be the only point of contact between the lender and company owner, so being very familiar with both parties is key. Of course, you can also charge for these facilitation services.
Talk to your financial team about expanding your loans from direct lenders contact list to offer loan matching services today.