Banks’ Business Loan Requirements VS. Merchant Cash Advance

Business Loan Requirements

Business loans are much different than any other loan that people opt out for today. With general loans like house loans, car loans, and even education loans, you have a specific requirement that you want to fill for a specific reason, and that reason seldom fails to differ by the time the loan is delivered. Also, all of the other loans, happen to be much safer than business loans because they are all for rigid things.

Businesses are as away from both of those things as their owners are from the average person. Businesses are not specific as they tend to change by the violent winds of this volatile market. Trends change randomly, something which is on top today might fall to the bottom the very next day, this capricious nature of businesses allows them to be quite tricky in acquiring loans as compared to every other loan company out there. On, the other hand, businesses are flexible, because a business is not its machines, or buildings, or even the things that they manufacture. A business is an idea which comes from the minds of its planners, workers, and owners. It is like fire, a living breathing thing that grows and spreads.

This is precisely the reason why business loan requirements are much different than the requirements of any other loan if you decide to go with a bank. Because for banks to give business loans, they have to have complete confidence in the businesses and that trust only comes after fulfilling many strict procedures and requirements; some of which are:

  •    A detailed proposal: You have to give a complete proposal of your business while applying for any kind of a business loan through banks or any other financial institution. This proposal should contain an introduction to your business, your vision, your goal, your progress and working so far, you profit rates, your losses, and your entire future prospectus.
  •   A requirement briefing: One of the major business loan requirements is that you have to submit the sum of money that you require through this loan, the purpose of why you require this working capital, and finally everything about how you wish to spend that money in the furthering of your business.
  •    Credit history: Now, this is quite an important aspect of business loan requirements. You need to submit your complete credit history which will contain your complete purchase and debt settlement timeline as well. A good credit will get you brilliant conditions of the business loan along with lower interest rates. While, if you have bad credit, you will be most likely rejected.
  •    Personal documents: As the standard procedure of every type of loan goes, you will also have to submit your identification proofs, your home address, your spouse’s identification and address, along with all about your family and background. This is also one of the business loan requirements.
  •    Collateral: Collateral is something that might required if you want higher sums of money in a business loan. Every bank will have its own minimum collateral demanding statements. And you will have to provide collateral of equal or more value. This can be anything from your house, to your factory, or some rural land, or your property and holdings. Although gold reserves, and FDs are also considered for collaterals.

But even after fulfilling all of these business loan requirements that are imposed upon you by banks, it is not exactly mandatory that your business loan will pass. This is because the final decision completely lies on the fact that the bank officers consider you a risk that they can take or not. Also, even if you do get the loan, the loan will not arrive to you at once, but instead will come in tedious installments. And installments are how you will be asked to pay for the loan as well. And if you forget it once, you will have to pay extra fees even if you were not even in a financial condition to pay for your business loan installment due to bad business.

But, there are still better ways through which you can get better business loans that will have lesser business loan requirements, with fairly greater chances of acceptance.

One of these ways is the Merchant Cash Advance.

What is Merchant Cash Advance?

Merchant Cash Advance is a way through which small business owners can get working capital loans through independent financial companies or individuals in a completely transparent, safe, and faster way. In Merchant Cash Advance, you can negotiate your own terms with your lender and not sign on the contract until you completely are sure about the loan along with the lender.

All you have to do is apply directly to your chosen Merchant Cash Advance seller with your proposal. This proposal will be most probably accepted because there is a 80% acceptance rate for Merchant Cash Advance. Once, the proposal is accepted, you will be called for negotiation meeting and to sign the contract, following that you will soon receive the complete working capital in a lump sum in just a few hours.

Here are some of the Merchant Cash Advance’s business loan requirements:

  •    All fundamental requirements: All the fundamental requirements that are exactly the same with banks also apply to Merchant Cash Advance, like the proposal of your business, your business loan requirements, your future sales prospectus, and your personal information.
  •    No collateral: No matter how big of a Merchant Cash Advance business loan you might require, you will not be asked to give your house as collateral, and that is the beauty of Merchant Cash Advance.
  •    Bad credit no problem: Unlike in banks, you will not be rejected if you have a bad credit. You might have to give extra interest though, and a good credit will certainly help you get better deals though.

And not just that, with Merchant Cash Advance, you will also get hassle-free repayment. This is because the repayment will happen through a pre-agreed upon a portion of your future credit card sales!

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