Alternative lenders have recently been applauded by many people. Most of them have testified to their promptness in offering business loans to small scale business owners. Merchant cash advance companies are alternative lenders that have become popular among many people who have pressing financial needs in their businesses, needs which ought to be addressed with much urgency.
MCA providers have been considered to be the most expensive options for one interested in getting a business loan. However, you need to put into consideration a number of factors that make them have an edge over the other lenders. This article will expose you to some of the key reasons, why you might think of approaching them for a business loan. The key ones are:
- Their high business loan approval rates
Small scale business owners who have approached traditional lenders have had their loan being declined to a rate of about 60%. With such a staggering figure, alternative lenders such a MCA providers have brought back hope by approving most of the small scale business loans. For this reason, if you are a small scale businessman, it will be prudent to consider a MCA company when seeking a business loan.
- The repayment schedule is favorable
By taking a merchant cash advance for a business loan, the repayments will be based on your daily credit sales as a company. A fixed percentage of your credit sales will be remitted to the MCA provider that you approached. This means that you will part with more cash on days with high sales volumes while you will be left with enough cash to run your business on days with low sales volumes. This is sustainable compared to traditional lenders who require you to repay fixed amounts on a monthly basis, this being expected of you without a consideration of your sales volume.
- The application process is simplified
In order for you to qualify for a business loan from a MCA company, you don’t have to undertake lengthy application procedures. All you need to have is a copy of your business’s financial statements, the daily credit sales as well as the expected credit sales in the future. It is good to add that compared to most of the traditional lenders, you won’t need to provide any form of collateral for you to qualify for a business loan. This is way simplified and easier in comparison to what you would go through when dealing with traditional lenders.
- You can cash in quickly on business opportunities as they arise
At times, a business opportunity might come up when you are short of capital to invest in it. During such occurrences, taking a business loan would be quite appropriate and it even gets better if you have a lender who offers prompt services. The turnaround time for most of the MCA providers is about 1 to at most 3 days. This means that you will have a business loan in a timely fashion to taste different waters in the business world.
These are just some of the key reasons why you need to consider a MCA company for the provision of a business loan. They have faster approval rates, have a sustainable repayment period besides the convenience of their simple application procedures. You can try them out to enjoy responsive and prompt services although you need to keep in mind that they are relatively expensive.