Merchant Cash Advance Blog

Top Things You Didn't Know About Merchant Cash Advance Companies

   Monday, 09 October 2017 13:24 PBC Blog

Top Things You Didnt Know About Merchant Cash Advance Companies

In the present fiscal world, more and more people have started opting for loans to build up their businesses as an easy means to obtain capital funding. Among such loans, Merchant Cash Advance has come up as the most popular source of loan applied by business owners and organizations, owing to their easy utility and quick process. In the last decade, a large number of cash advance companies have been in existence in the financial world to help businesses in need of capital aid.


Read More:
How to Get a Small Business Loan in 5 Steps


What are cash advance companies?


Similar to loans from banks, a
merchant cash advance offers a particular amount of funding in times when businesses need capital. Cash advance companies are organizations containing a number of lenders, who deal specifically in financing a business.


How do cash advance companies work?


In the process of merchant cash advance funding, cash advance companies are given and allowed by borrowers to sell out a part of the latter’s future sales. In return, an instant payment is given out to the borrower in need of aid for his or her business. Such companies offer funding, which business owners are in need of, to expand or to save their businesses, devoid of the long and tedious time taken by conventional business loans.


Read More:
Key Pro’s and Con’s of Merchant Funding


What are the benefits of cash advance companies?


Many business owners have started to approach these cash advance companies when a rough time crops up suddenly. Following are the benefits:


1.
      Speedy

Many cash advance companies can grant an application in a matter of minutes and send the payment to the business owner in 24 hours. The MCA process is the most viable when one needs to make payments for business or to make expansions. This is especially a viable and ideal option when a person cannot afford to wait too long for loan approval. The maximum time to get a loan processed is a week at the most.


2.
      Repaymentson a daily basis

MCA allow its borrowers to repay the amount in a small rate on a daily basis so that businesses are not drained. Additionally, the repaying amount is directly proportionate to the amount earned every day.

3.
      Lower Personal Risk

In merchant cash advance loans, the risk of using a personal possession as collateral is next to nil, in case one is unable to make repayments. Instead of such collateral, such companies ask for personal guarantees by which the borrower is individually responsible for making their respective repayments.


4.
      Time relaxation

In many instances, businesses tend to be fickle and unpredictable. In such times, it may take a person longer time to repay the borrowed amount. In mostcash advance companies, borrowers are not penalized when repayment term is exceeded. This is helpful when business profits slow down due to seasonal terms or constructions.

These are the prime benefits to opt directly for cash advance companies. These organizations take lesser time and are much more flexible than any other conventional loan source, which makes them the top choice for small business owners looking for quick funding.

 

We provide two highly accessible financing programs that can get your business the working capital it needs in days instead of months.

For a small business, obtaining a traditional loan today is a complex and difficult process. That’s where Premier Business Capital comes in. 

Merchant Cash AdvanceACH Loans 

 

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