Being a small business owner seems to be a popular career choice for many people at this current time. The recent years have witnessed a deluge of small businesses, but most of the traditional lenders seem to shy away from offering small business loans to them. This can be attributed to the unpredictable and unstable nature of most of the small business ventures. If you’re a business owner looking for a small business loan, then the most suitable option for you would be trying out a merchant cash advance provider.
Merchant cash advance providers fall into the alternative lenders category. These are lenders which have slightly different approaches in lending for their clients. Applying for a small business loan from MCA companies is quite simple and it will prove to be the most prompt solution for your business needs. For a traditional lender, a business owner would have to go through long bureaucratic procedures and waiting for your loan to be approved might take weeks to months. On the other hand, you will only take about a day to at most three days for the small business loan application, approval, and disbursement through a MCA..
A research done on the number of small business loan applications that are approved by traditional lenders was done, and the results were shocking. Only approximately 30 to 40% of small business loans were approved reflecting the high decline rates of traditional lenders such as banks. The rise in popularity of MCA companies can be traced back to their simple application procedures and their high approval rates. You ought to bear in mind that this is the most expensive lending option, but it is worth the sacrifice for a business that is on the verge of collapsing.
You can also get a quick solution for your financial hiccups by relying on MCA providers for the provision of small business loans. Their responsive and reliable nature attracts many small business owners who prefer their services. What is more is that you don’t need to provide any form of collateral to qualify for a small business loan. The requirements for qualifying include providing your financial statement as a business, a record of your credit sales transaction together with your projected future credit sales. Being an established business will be an added advantage to you.
A convenient though expensive repayment schedule for the small business loan MCA companies provide is also another attractive feature. The charges are at a fixed rate on the daily credit sales you’ll make as a business. This means that you will have to part with larger amounts on days with high credit sales while you will be left with enough cash to run your venture on days with low credit sales. The rates charged range from about 10 to 100% adding weight to the fact that this is an expensive option.
Getting a small business loan from MCA companies is the best and most reliable way of solving your financial constraints as a small business owner. They are prompt, have simple application procedures, and they have a convenient repayment schedule.