For the longest time, the idea of getting a bank loan haunted small business owners. They would panic about the fact that they needed one and then panic about how they would pay it all back. There’s good news though–back in the day a bank loan from your own financial institution would have been your choice, today, there are many good non-bank loans to choose from. One such loan is not really a loan at all which makes it a great choice for any small business owner. It’s called a MCA which stands for merchant cash advance. Now, before we tell you any more, the first thing you need to know about this type of MCA is that it’s not a traditional cash advance as you may know one. It’s actually, a line of revolving credit that is extended to you against one of two things or both; your business assets or your future profits.
Why this type of MCA Non-Bank Loan is the Best Choice
If you think about it, most bank loans have one thing in common… stress and more stress. Banks are not typically flexible by any stretch of the imagination. They put you through the wringer; attach all your assets; charge unreasonable interest and most of all; they don’t care if you are a small business owner that has hit hard times. Furthermore, bank loans are typically won by companies over 3 years old. This means if you are a fledgling company, you stand very little chance of getting a loan.
Top Reasons to have a Non-Bank Loan
A MCA non-bank loan gives you more flexibility than a traditional bank loan. When you apply to a traditional financial institution, they will want to know exactly why you need the small business loan. This is really a form of judgment more than anything else. Making you answer these questions in detail is the best way for these banks to find out where you are and if your business is in trouble. But, in their defense, they also want to be able to make sure you can pay it back. With a MCA, non-bank loan, that still applies but, they are so much more flexible and only ask what they need to.
A non-bank loan will also allow you to pay wages when your business is on a slow cycle. This type of loan is designed especially for the small business owner. This means they are expecting the crazy ups and downs as well as the unexpected. You may need equipment or to purchase advertising. You shouldn’t have to stress out about the normal stuff.
You have more freedom to apply more than once for this type of loan. It’s best to do so with the same lender that you have kept excellent communication with. Most times you can deal with the same lender for many years to come. It’s best practice to stay with the same company non-bank loan company throughout the life of your business so they can watch you grow. It will get easier and easier to get a loan in this case. Your bank will be more arbitrary than these companies will.