Merchant cash advance is the most reliable alternative method of financing the small and mid sized companies. At the initial level of your company, you have to have a strong financial support system for your business so that it may be able to handle and sustain the competitive market.
When small business owners do not find any funds from the banks, they head towards the lending companies who Provide loans such as Merchant Cash Advance to strengthen and expand their business.
Merchant cash advance is preferred over the traditional way of funding due to the following reasons:
1. High Approval Rate:
The benefit of the merchant cash advance is that it is easy to apply. It has almost 90 per cent approval rate and your application can be approved within a few hours.
2. No Excessive Paperwork:
To get the merchant cash advance, you do not require excessive paperwork. Within minimum relevant documentation you get the money you need for your small business.
3. No Collateral Required
The cash lender does not have to give any collateral as the security for the loan taken. Collaterals are needed in the conventional loans where the borrower has to give the collateral to the lender in order to make sure that he will return the money back.
4. Easy Repayment Options
The repayment of the merchant cash advance is very easy. The cash provider will cut 12 to 20 percent of the credit cash sales of the company on a monthly basis. This repayment depends on the company’s monthly sales and the repayment amount changes in accordance with sales.
5. Revenue Based Repayments:
It is not necessary that your company will get high sales every month. The sales of company may slow down and your repayment is adjusted accordingly. If you are earning high cash, you can pay back the cash advance faster.
So before you plan to opt for a bank loan, keep your options open and research more towards acquiring alternative funding solutions. Because for small businesses, banks may not be the suitable source for small business loans. Merchant companies offer customized loans programs with 90 percent approval rate. Small businesses should opt for such lending solutions.