Merchant Cash Advance: The Better Option Compared to Big and Small Bank Loans

small bank loans

It is not a secret that many business suffer cash-flow problems these days. There are many tips to help a business owner prepare himself for those cash crunch moments, while other times, a loan may be just the thing to help a business owner out of a sticky situation. Small bank loans have been one of the most popular ways to finance businesses for decades. This is because, in comparison to big banks who are already established and have gone multi-national with millions of clients, small banks tend to be much more appealing, helpful and ready to take risks with clients as opposed to big banks.

Difference between small banks and big banks

Here are a few differences that you will find while working with small and big banks:

  •    Big banks are already established and are spread across countries. They might have been very helpful and must have given you many benefits and have treated you like royalty when they were growing. But today, they will treat you like they are above you because now you are just one of the millions of customers that they serve.

On the other hand, small bank loans will be much better for you, as the small banks will respect you much more and due to their small client base, they would want to treat you in the best possible way. So, you can expect better deals, with less interest, longer pay period, and better methods to pay alongside with giving your less pain.

  •    Big banks also tend to be much more bureaucratic in nature and are known to drag on their conditions upon you. They are also much less likely to take chances on you, as their money is far too precious, and you might be a bigger liability. They will ask you to provide collateral if you are able to satisfy them with your business. They will easily reject you if you have a bad credit history. And, even after all of that, they will not understand your concept of urgency if you are in a dire need of finance.

Small bank loans on the other hand will be much better for you since small banks will be much less bureaucratic and will have better rules and policies compared to big banks. They are also much less likely to put many restrictions on you and also likely to take bigger risks on you. Even if you have bad credit history, small banks might provide a loan, but that is something big banks will never do. And finally, as they will treat you with much more respect and acknowledgment than big banks,  they will take your urgency into consideration while processing your loan.

So, it is obvious that small bank loans are much better than big bank loans. Big banks are likely to change their policies whenever they feel like, regardless of your disdain or problem, small banks are also much likely to change their rules according to your consideration.  All of these things and more much is the reason why many business owners tend to go for small banks to take care of their financial needs than bigger banks.

Still, is the whole banking institution even best for the business loan? Small or big, they all follow the same old way of working and putting many restrictions on you. They will also have to adhere to many government policies and limits, and if you want your financial working capital in a lump-sum, you can simply forget it entirely.  The repayment method of banks is very tedious with monthly installments. And if somehow, because of your business state, or maybe even if you forget to pay the installment on time, you will be asked to pay a fine just for that. And this makes small bank loans not good for businesses.

Small banks are not going to stay small banks forever as well, and sooner or later, they will grow and will become like big banks as well. And, this is the reason why small bank loans are not exactly the best ways to finance your business today.

So, is there a way through which you can finance your business which beats small banks? Yes, there certainly is, and this method is called the Merchant Cash Advance loan, an industry that is created by the businesses and for the businesses.

What is Merchant Cash Advance?

Merchant Cash Advance is a method through which business owners, whether big or small, can get a volume of working capital loans without the need for banks, in a fast-paced, transparent, and easy way. The way Merchant Cash Advance works is that the business owner approaches the MCA lender. Which can be streamlined with the help of ISOs to sell MCA, but we will discuss this later. After, the business owner’s proposal has been accepted; the lender and the potential debtor negotiate on their agreed terms.

Soon, afterwards, the signing of the contract happens, and the money is directly transferred to the debtor. The whole process can take as less as 48 hours and the ease of repayment makes it a complete boon to business owners.

What are the advantages of MCA?

There are many advantages of MCA over banks. While banks are full of hassle, bureaucracies, and frustrating limits, MCA poses no such thing. While in banks, the method of repayment is done through monthly installments that the debtor makes painstakingly, everything in MCA is automated. And here are all the advantages that MCA holds over banks:

  1.  Split Withholding: This is the most preferred and hassle-free way of repayment in MCA. After the signing of the contract, the repayment takes place through a small percentage of every credit card purchase the business owner’s customers make goes directly to the lender. This process happens automatically and finishes when the loan is repaid with interest.
  2.  A business deal like proceedings: The whole process of MCA is made for the business owners. And so, negotiations are appreciated and a contract is only signed when both parties are satisfied.
  3.   Bad credit is not a problem: Proceedings of MCA does not depend upon your credit, as it directly correlates to your monthly earnings.

And so Merchant Cash Advance triumphs small bank loans, in the matter of financing your business. Consider seeking a Merchant Cash Advance provider for your business needs today!

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