Two Best Reasons Why Business Cash Advance is Better than Traditional Loans
At one point or another, your business will be in a situation where cash is badly needed. For small and medium-sized companies, a business cash advance will help meet your needs. Bank loans may be an option for you at first, but after you are rejected, you will find out how frustrating it can be to get cash for businesses that are still developing.
Actually, getting a merchant cash advance (MCA) can even give you more benefits than the traditional bank loan. There are two reasons why it is small business owners should get an MCA against a bank loan.
Reason 1 – Faster Funding
Bank loans will take months before you get the cash. Moreover, there is very minimal chance that you will get it, not to mention all the needed paperwork just to get approved of the loan. But with the business cash advance loan, the waiting process will only take less than a week. If your application has been approved, the money will be forwarded to your credit card in as quickly as 48 hours.
That is one reason for you to prefer a cash advance above bank loans. MCA providers understand businesses when emergency funds are needed; a quick funding is needed as well. This is why they don’t let you wait for too long before handing you the money.
Reason 2 – No-risk Repayment Process
Repayment procedures with MCA are done through credit card processing. The amount is based on your daily credit card sales. The provider will take the agreed percentage from your business sales each month until the cash advance is repaid.
Unlike banks, there s no need for collaterals, interest fees and personal guarantees. The MCA providers won’t take legal actions against your company in case the repayment process is taking a little too long. The payback amount is very flexible and guaranteed zero risk on your behalf.
This type of business funding is applicable for any type of businesses. Whether you own a restaurant, dental clinic, clothing store, appliance store or any small and medium business, you can avail the merchant cash advance. Moreover, there is no need to have a good credit record history just to avail the cash advance.
A guaranteed lease for one more year from your landlord and presenting all the record from your credit card transactions are just two of the easy requirements that are needed to get a credit card sales advance.