The popularity of merchant cash advance providers seems likes a mystery to most of us. Many small businesses tend to prefer these alternative lenders for a number of reasons. They have high approval rates, don’t require collateral and they also tolerate businesses which have a history of bad debt. To meet the needs of such businesses who seek no credit check loans direct lenders, the direct lenders need to link up with active independent sales organizations. ISOs have a direct link to most of the clients who can benefit from their MCA services.
Most of the direct lenders usually treat ISOs with the utmost respect by offering them returns on their services which are commensurate to their efforts. For every deal they broker, 10% of the interest earned on any MCA loan automatically goes to the ISO that facilitated the deal. While linking them to small businesses looking for no credit check loans direct lenders, most ISOs won’t incur any expenses as all the cost will be covered by the direct lender.
Most of the traditional lenders shy off from offering loans to small businesses with bad credit history. Direct lenders are different, like most MCA providers and they willingly provide loans to eligible small business faced with financial crises. They are quite considerate though most of them charge high interests, ranging from 10 to 40% for the MCA loans that they provide due to their high-risk tag. Clients that ISOs recommend to them ought to have been in business for at least a year and they need to generate revenue of at least $10,000 per month. These numbers can vary amongst different MCA companies.
Small businesses seeking no credit check loans direct lenders need to provide the following documents while applying for a loan: their financial statement, a copy of their credit sales history and the predicted credit sales in the near future. These documents would then be processed to verify whether the business can sustain the servicing of an MCA loan. As alluded to earlier on, a small business doesn’t need to provide collateral during the application and they can also apply if they have a bad debt history.
Many of the direct lenders are prompt in responding to the loan applications and the approval and disbursement of the MCA loans take just a matter of days. The repayment period will range from as short as 3 months to as long as 12 months. The client’s ISOs recommend having to understand that they need to repay the loan on a daily basis, based on a fixed percentage of their daily credit sales. Most of them usually deduct 10% of the daily credit sales; this is relatively sustainable since enough working capital will be left for the business to run smoothly. The only drawback of this approach is its expensive nature in the long run.
ISOs shouldn’t hesitate in linking direct lenders with small businesses that are in search of no credit check loans direct lenders. The reason being that most of them usually offer ISOs with, impressive commission rates besides them hardly incurring any expenses.