Running a small business could be thought of as an easier venture to undertake with less financial requirements, but small business owners themselves may tell a different tale. It is not rare to find a small business which can barely meet its financial obligations and this could explain why many of them seek funding from preferred small business lenders. Traditional lenders are renowned for declining most of the small business loan applications. On the other hand, alternative business lenders such as merchant cash advance providers have higher approval rates.
The rise in popularity of MCA providers could be attributed to a number of factors which are in favor of most small businesses. Application procedures for those who want a loan from these lenders are quite simple and reasonable. You will have to provide a financial statement of your business, a copy of your credit sales in the recent past as well as your estimated credit sales in the near future. Those with a history of bad debts can still approach these lenders and no form of collateral is usually required.
MCA companies as preferred small business lenders will offer a business a lump sum that will be repaid based on the daily credit sales transactions. A fixed percentage of the daily credit earning will be deducted and remitted to the MCA providers. The overall amount to be paid will be higher compared to the case of other lenders, the rates charged range from 10 to 100%. Despite the high-interest rates of these lenders, many business owners prefer them due to their prompt response and reliability.
Repayment of the cash advance is relatively sustainable for most small businesses. Though higher amounts will have to be remitted to the MCA Company on days with higher earnings, fewer amounts will be deducted on days characterized by low sales in order to ensure that you are left with enough cash to keep your business running. The scenario is quite different for the traditional lenders who will need you to repay fixed amounts at the end of every month without taking into account the performance of your business.
The needs of small business could be urgent and the prompt response offered by these small business lenders could be what you are looking for. Whether you have run short of your working capital as a business or are having the inadequate cash to repay your loans to undertaking a business expansion, trying out a MCA provider could be the solution to your financial problems. Business opportunities also arise and having insufficient cash to invest in them should not be an issue with the availability and accommodative nature of these lenders.
As a small business owner, you ought to seek for more responsive and reliable, preferred small business lenders. Merchant cash advance providers are such lenders; you will get your cash advance in time, the repayment schedule is sustainable and their approval rates are much higher.