Why are merchant loans better than bank loans? This is a question that is asked by many business owners today when looking at the rising trend of more and more business owners choosing Merchant Cash Advance as their chosen financial institute to obtain loans from. On the other hand, bank loans that have been funding businesses for centuries seem to be losing faith from many business owners today. So, why is this happening?
The answer to this question can come from many different sources detailing different reasons for why this trend seems to be continuing and only going forward. From the rise of new technologies that have dramatically changed the world in only a couple of decades to the draconian system that banks have been refusing to change with the times. All of these reasons are quite valid, and yet there hasn’t been much light over why merchant loans are much more preferable by business owners today than it has ever been in the pages of history. And so, throughout this article, we will look at why business owners would rather use Merchant Cash Advance instead of the traditional bank method.
Loans with banks
While the banking industry has been booming since the dawn of the global trade, and even today it is a multi-billion-dollar industry, and yet many experts are claiming that banks will not survive this century. This is because of many reasons. Some of them are as follows:
- A growing distrust: Over the last century, banks have created a monopoly over the world of the finance. They are the ones who mint the currency and also give value (barely) to all the money that floats around the world. This would have gone well with people if it wasn’t for the fact that banks have caused many financial crises in just last decade alone. And so people do not trust banks anymore. And so business owners prefer merchant loans.
- Caught in bureaucracy: Banks still adhere to the strict archaic laws they did in the last century. And their refusal to update themselves with the times has caused many business owners to feel frustrated with their restrictions and slow processes while giving loans. And so many business owners just choose to look the other way.
- Rising technology: Technology is a tool that can rapidly change the world with their introduction. And ‘block-chain crypto-currency’ is one of them. And it is projected to replace banks completely.
Merchant loans with Merchant Cash Advance
Merchant Cash Advance, on the other hand, is a way through which many business owners are able to find much faster, safer, and more transparent loans that are created after taking their demands into consideration. MCA can adapt with times and even benefit with block-chain currencies. It allows business owners to make repayments without any problems by automatically transferring a portion of their future credit card sales directly to the lender.
And that is the reason why the trend of choosing merchant loans over traditional bank loans seems to be rising with no apparent stop to it. But then, with such great aspects and a loan process that does not ask you to give collateral or demands a good credit history to be eligible, who can question them?