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How Merchant Cash Advance Can Provide Easy Cash For Those Seeking Restaurant Financing

With cutthroat competition sustaining the restaurant business, it is not everybody’s piece of cake. With the strict market regulations and an ongoing fast-paced trend of innovation and modernization; it gets difficult for restaurateurs to run their businesses. However, for any business, there is nothing more satisfying than a satisfied clientele that comes time and again to savor the culinary delights.


While many businessmen get excited by the glitz and growth potential of this industry, it is not simple to own and operate a restaurant. The industry is constantly evolving, expanding, and is likely to remain a competitive extension market. Thus, experiencing everyday struggles and difficulties to get restaurant financing is extremely overwhelming for the business owner.

In order to succeed and thrive in this industry, restaurateurs need to be social, patient and work hard to pave their way to the top. A food business is a direct connection with the soul, by doing it right, you can make a profound mark on your patrons.


However, everyone who is either associated or running a restaurant know how tricky the industry is. According to a report published by Ohio State University, “60 percent close or change ownership in the first year of business, 80 percent fail within five years.” This is an alarming number – and even after failing, many restauranteurs do not know the reasons behind it. Nonetheless, the industry has grown at a rampant pace in the past few years. There are now nearly 700,000 restaurant owners in the U.S. Despite the success these businesses have; restaurant financing is a challenge for all of them.


Many restaurants have gained immense traction and have become favorites. They also have a packed reservation list at all time. But, there comes a time when they require renovation and replacement to modernize the setup. When you are in the eatery business, there are no guarantees that your restaurant would not require funding from external sources.


Competition is not the only thing that would hamper the progress of your restaurant business. A financial turmoil also has a huge impact on your working capital. The economy also plays a vital role in a successful business might take a hit if it takes away consumers from spending on restaurants. As a smart businessman, you should not only rely on the money coming in from customers because sometimes it is not enough. You have to think about alternative restaurant financing options at some point to cover your day to day activities and expenses.


An immediate funding can save your operations, consequently, help your business grow and expand. Recently, Merchant Cash Advance (MCA) has proved to be a perfect solution for many restauranteurs due to several reasons. One of the biggest advantages of MCA is that you get quick access to funding without having to go through much hassle. MCAs help you eliminate the lengthy procedures of conventional loaning options that you needed to get approval. It also removes the trouble of completing lots of paperwork.


Why Merchant Cash Advance For Restaurant Financing?


Are you skeptical about why you should not go for a small business loan for your restaurant? Why cash merchant advance a better solution? Will it help you and your business in the long run? It is safe to say MCA is the better option as the funding amount that you can get for your restaurant business is higher than what conventional loan providers would offer. The process is also easier thus restauranteurs prefer MCA over small business loans. Merchant Cash Advance lenders offer an amount that is as much as 1.25-1.5 times the credit card sales over a specific time period.


When it comes to repayment, MCA also provides flexibility as you will repay the lender in accordance with the future credit sales that have occurred. This eliminates the need to be concerned about monthly payments and last due dates.


Benefits of MCA for your
Restaurant Financing Needs


Many MCA lenders state that restaurants take advantage of merchant cash advance financing more than any other business. Why? These businesses are well positioned to take utmost benefit of MCA product as owners sometimes have to get quick access to working capital to be able to keep up with the sudden market shifts. The funds are used to grow and improve the business.


With MCA, you are guaranteed to get fast cash easily in exchange for a share of future sales. You do not have to worry about going through long procedures. Even if you have a bad debt or credit history, MCA will allow you a lump sum payment for your business. Are you interested to know more MCA benefits? Keep reading!


1.
      Streamlined Application Process: Did you get tired filing paperwork and collaterals to get approval for your loan? With Merchant Cash Advance, you do not have to worry about going through a tedious process. MCA providers do not go into any financial details to approve your application such as financial statements, tax returns, and more. Only your future credit card sales, monthly credit card returns, and the number of months/years you have been in the industry is evaluated – it has become that simple!


2.
      High Rate of Approvals: Merchant Cash Advance providers do not make decisions on your credit score or debt history. They evaluate your business performance which is why there is a high approval rate for restaurant financing if you choose MCA. Any solid business is guaranteed to get 1.5 times more funds than conventional loaning options.


3.       Collections Based On Revenues: MCA offers the most flexible repayment terms – they collect the dues based on the percentage. You do not have to pay a fixed amount every month. This way, if the season is slow and your restaurant has a slower month in sales, you will repay less than during a high sales month. You will have peace of mind as MVA lenders give you time and space to build up your business.


4.
      Base Entry Bar Kept Low: Your restaurant financing application is more likely to be accepted by an MCA provider. Conventional loan providers are reluctant in offering funding options to those who operate a high-risk business in a high-risk industry. Restaurant owners will have to demonstrate strong credit if they want to get approval for a small business loan. This option is more difficult for those who are new and recently entered the eatery business. They usually do not meet commercial lender credit qualifications. Thus, MCA is the perfect solution as there are no such qualification criteria.


5.
      Fast Turnaround Time: Keep in mind that small business loans take weeks and months to clear if your application is approved. With MCA, there is a fast turnaround time as it takes a week or so to clear the funds.


It is the best financing solution available in the market for your restaurant using which you can take care of the following:


SUSTAIN YOUR EMPLOYEES


The quality of food you serve to your customers is important. However, excellent customer service is something that will differentiate you from your competitors. You can maintain your employees so that they can provide an excellent dine-in experience whenever they visit your restaurant. Due to cutthroat competition, the need to employ and sustain best managers, servers, staff, and chefs is more than ever. And, MCA will provide the needed working capital to help you cover such expenses.


MAINTAIN, PURCHASE, REPAIR, OR UPGRADE YOUR ASSETS


There are instances where there is a need to make necessary changes in your business. It could be to upgrade your restaurant’s theme, maintain your equipment such as stoves, purchase new cutlery set, or repair the roof. All of these will have a positive impact that will boost the quality and efficiency your business. A sufficient working capital in the form restaurant financing will help you stay ahead of the curve.


KEEP YOUR INVENTORY WELL STOCKED


It is important that your restaurant business has a well-stocked inventory. It creates a negative impression if one of your favorite customers need something that is not available due to a limited budget. Merchant Cash Advance allows restaurant owners to keep their inventory well stocked at all times. They certainly would not want to feel embarrassed by refusing a customer their favorite meal. Thus, a better inventory will help you run your business efficiently.


ENHANCE YOUR MENU


Every restaurant has a signature dish that drives the majority of the customers. But, there is a need to keep enhancing and improving the menu after a while. Do not rely on a couple of signature dishes only. Maintain a diverse menu so that you can offer more options to your customers. Enhancing a menu could mean hiring a new chef(s), purchasing new equipment, or acquiring extra inventory. MCA restaurant financing will cover the costs involved to revamp your menu selection.


Merchant Cash Advance – A Restaurant’s financing Solution!


In order to process your restaurant’s day to day operations, you need working capital which can be acquired from Merchant Cash Advance. As compared to other alternative lending and conventional loaning options, MCAs offer convenience and reliability to businesses at the time of need.

Published inPBC Blog

How Business Loans Today are Not as Good as a Merchant Cash Advance

In good times, business owners have sufficient cash flow needed to grow and be successful. This also helps them to stay competitive in the industry. But, there comes a time when your business does not have a steady cash flow. This could be due to several reasons and could hamper your company’s progress. Nonetheless, you will require a good source of fast cash to help you keep the doors open or grow successfully.


The two financing options that could provide small businesses with sufficient working capital are business loans and merchant cash advance (MCA). Both of these financing options are structured in a different manner and have its unique characteristics. Many people do not understand the difference between the two products despite being more or less appropriate for a specific business need.


In order to develop your understanding, let's begin with the definitions.


Business Loan
: A business loan is a financing option that provides small businesses with upfront cash. However, the businesses have to repay the lenders in monthly installments. A fixed amount per month is agreed between both parties, and the payment is directly withdrawn from a business’ operations account. There is a slight chance that the lender may offer a flexible method if that is efficient for your business.


Business loans also require business owners to offer a collateral in exchange for a loan. This could be their inventory or equipment.


Merchant Cash Advance
: Similar to a business loan, Merchant Cash Advance or MCA also provides small businesses with the upfront cash required to take care of their day to day expenses. In this financing option, both parties – lender and borrower, agree on an amount that will be paid on a regular basis, in accordance with the credit card receipts.


The MCA provider also approves an applicant who has been new in the industry. However, it is not considered a loan. Typically, the fast cash offered through MCA is secured by future credit card sales. Also, the cost required to get access to merchant cash advance is agreed initially – this amount will not change, whatsoever. For instance, if you require $60,000 cash advance for your business, it might cost you $7,500. Thus, the total amount that you will have to pay back to the lender would be $67,500.


Why is MCA not considered a
business loan?


Like any other financing option, a merchant cash advance offers upfront funding to businesses for their required working capital. However, MCA is not a loan option because the providers of this financing option do not have to adhere to state and federal regulations. In conventional loaning options, banks and other financial institutions have to comply with the rules set by the government.


Factors to consider when choosing a financing option


When we talk about financing options, both
business loans and merchant cash advance come with their unique characteristics, and pros and cons. Let's have a look at the factors which small businesses need to consider while choosing a financing option:


·
        Speed & Eligibility: When you require financing for your business, the first thing you consider is how quickly you are going to the desired funds and what is the eligibility criteria. In case of merchant cash advance, less documentation and paperwork is involved. MCA providers only ask for your annual credit sales, bank statement, and merchant account history. Lenders typically evaluate your future performance and ability to cover the cash advance. Majority of the small businesses or startups get the desired funds quickly and easily.

In case of a business loan, the lender will ask for credit ratings, tax record, collateral, and documents mentioned above. Not only the process is long and tedious, but it involves lots of paperwork. It may take weeks and months to clear the funding if your application is approved. Most successful businesses are denied due to having a less than perfect credit history.

·         Interest Rates and Repayment Terms: As discussed above, MCAs are not loans. In this financing option, you are not borrowing money from the lender, typically. You are only selling a chunk of your future sales in return for upfront fast cash. Thus, merchant cash advance is structured differently than business loans.

When it comes to a business loan for small companies or startups, there are strict rules, and most bank lenders have a limit to charge customers. Sometimes, this is an affordable option, but it all depends on the repayment terms, interest rates, and duration. All in all, business loans are harder to secure.

A business loan, however, does not offer flexibility when it comes to repayment. A fixed amount is agreed which you will have to pay on a monthly basis – even if your business is not performing well. In contrast, MCA repayment terms depend on the future revenue your business is generating through credit sales.

·         Approval Process: Merchant cash advance not only has a higher rate of approvals but the lenders clear funding within a few days or so. If your business’ credit card receipts are sufficient to pay the money back, you are most likely to be approved for an MCA. This is a quick and convenient way to get working capital. Whereas for business loans, not only the declination rate is high but the process is tedious. This is the main reason many business owners prefer MCA over conventional loan options.


How does MCA work?


Generally, both financing options are based on receiving and repaying a lump sum amount of money. But, this does not make MCA a loan option. The future credit card sales of your business determine if you are eligible for merchant cash advance. The repayment terms are also dependent on the sales you make on a monthly basis. Only an agreed percentage of sales per month is deducted to cover the amount you received. Usually, the percentage ranges from five to 20 percent and is known as the ‘holdback percentage.’


What’s amazing is that the holdback percentage will remain constant throughout the course of the agreement. The amount you have to repay, however, is variable and will be deducted after evaluating credit card receipts. Thus, there is no fixed due date to pay back the entire amount, unlike business loans. The APR of an MCA is also between 80% and 100%. Usually, MCAs are paid in full by small businesses within four to 20 months.

The primary reason why it is not a loan is that merchant cash advance lenders purchase future receivables at a discount. In exchange, you get quick access to the cash you need to manage operational expenses. Hence, every credit sale you make in the upcoming months, the MCA provider will take a chunk of the revenue until it is repaid in full.


Why small businesses prefer MCA over business loans?


Small businesses and startups have turned their attention towards merchant cash advance. Recently, it has become a popular financing option due to several reasons. Here, we have listed some of the reasons why businesses prefer MCA over business loans:

1.       MCA is a quick and convenient way to get a cash advance. Business will get the needed working capital within a week while not getting involved in long processes. MCA lenders evaluate credit card receipts to see if the owner is able to repay in the future.

2.       There is no need for collateral when you choose MCA financing option. Thus, you will not have to give up any business or personal assets in case you are not able to repay the amount. It only involves a written guarantee to make you personally responsible for repaying the entire amount.

3.       There are no fixed payments that need to be done on a monthly basis. If your business has had a slow month and your sales are down, you will have to pay less to the lender. A percentage of total sales is decided by both parties. Thus it is readjusted as per the performance of your business.

4.       Unlike business loans, there is no interest involved. Therefore, the amount will not grow with the passage of time. Even if the tenure has slowed down, the overall cost of MCA will remain the same.

5.       Repayments are made automatically from the credit card sales of the business. This is done through credit card process giving you the peace of mind of never missing the due date. When payment is made on time every month, you do not have to bear the late fees whatsoever.

6.       Depending on the business situation, the repayment terms of this financing option can be structured differently.


Initially, small, medium and large businesses relied on business loans to get access to working capital. However, the long waiting for approval and transfer of the funds made them switch to Merchant Cash Advances that are a more viable option to get you the desired working capital at the time of need. Not only is it fast and reliable, but also allows you to take care of tasks then and there.

Published inPBC Blog

Is MCA Funding Preferable to Loans From Commercial Banks

It is not unusual for a business to find that it is unable to solely raise the capital it might need to finance one project or the other. It could be that the firm is seeking to expand its operations, go into a new line of production, acquire some more advanced machinery, or open a new outlet. And, apart from trying to obtain a loan from a commercial bank, there are some other means of getting financial assistance, one of which is MCA funding. This mode of funding has continued to gain popularity among business owners for reasons that are not far-fetched.


•    What exactly is MCA Funding?


The term MCA is an acronym for merchant cash advance—a system of funding in which a lump sum of money is made available to business owners in exchange for the future credit sales of their franchise.  

This implies that MCA funding is not a loan per se; rather, it is a business transaction involving a company that offers merchant cash advances (to be henceforth referred to as the lending firm) and a particular business. In this transaction, the business receives a lump sum of cash from the lending firm with a guarantee that the advance will be recovered from its future debit and credit sales in a manner that both parties usually consent to. This might not be quite easy to grasp at first but a detailed explanation such as is to follow should suffice to acquaint virtually anyone with the basics of how merchant cash advance work.


•    How does it work?


In almost every place the issue of MCA funding is raised, there appears to be so much confusion regarding how it works in practice. Some business owners even get apprehensive about occasions owing to the numerous misconceptions which they have about merchant funding. But to understand how the whole process works, it necessary for us to site a business scenario which will help in no small measure to drive home the point we shall be making.


First, let us consider a small pharmaceutical company which needs a substantial amount of capital to pursue a new line of production. Now this new line of production promises much in terms of revenue and profit. This firm, being unable to raise the much-needed capital can easily turn the lending company and request a cash advance upon presentation of the record of its credit card sales for a couple of the previous months.


•    How do the merchant advance firms earn a profit?


Once the decision to issue the business with the requested advance sum is made, the lending firm proceeds to multiply the said amount by a certain number known as the factor rate to get the total amount payable by the business. It is the margin created by the difference between this total amount and the advance that represents the profit of the lending firm. As can be seen the process, of obtaining MCA funding is somewhat simple and straightforward.


For this advance to repaid as and when due, the pharmaceutical will be required to contact its credit card company to ensure that the agreed amount which is to be paid at regular intervals is automatically transferred to the lending company as credit and debit sales begin to come in.


•    In what way is the amount retrieved determined?


But, then, the question as to how the amount which is paid at regular intervals is determined naturally arises? The other question that might follow suit is who is empowered to determine such an amount? Let us begin with this second question. In that regard, it is the usual practice for the lending company to decide what amount to retrieve (the amount remitted at fixed intervals is known as total retrievable amount), usually after taking into cognizance the nature of, and the strength of the business. The strength of the business, that is, its presumed ability to repay the advance is determined by looking at the immediate past records of its credit sales.


In order to arrive at the retrievable amount, the lending firm will always come up with a percentage of the total credit sales from which the advance is to be recovered. Let us assume that this percentage is pegged at fifteen percent. If so, then it means that fifteen percent of the total credit sale over the agreed period of time, say weekly or even daily, is remitted automatically to the lending company until the total payable amount has been recovered.

Admittedly, this illustration sums up about all there is to the repayment process, but it gives the impression that the there is no flexibility in the mode of payment. This is not exactly true and we shall proceed to differentiate between the two modes of payment associated with MCA funding.


•    The two modes of payment and what each implies


The first option most business owners opt for is that which requires that a percentage of the credit sales shall be remitted when due.  In this method of payment, the time it would take to redeem the whole of the advance cannot be accurately known in advance. The reason for this is that the actual credit card sales might be more or less than the estimate.

If this happens and the percentage of which the amount to be retrieved is based remains the same and it does, then the actual cash remitted to the lending company will fluctuate correspondingly with the credit sale. This will invariably mean that duration which the payment will take to be completed will either increase or decrease depending on whether the credit sales go up or down.

In the second option, however, the situation is a little bit different. If for instance a percentage of fifteen percent has been stipulated for computing the retrieval amount, then this value is used based on an estimate of the future credit card sales of the company. And it if occurs that the actual credit card sales of the business falls below or exceeds this estimate, the exact same amount that has been calculated from the estimate is paid at the stipulated interval.

While some business owners sometimes consider that this method is likely to strain the cash flow of the business at very critical times, it is often not so much different from the first method. In all, they are both effective in redeeming cash advances obtained through MCA funding.


•    Why is MCA Funding Preferable to Commercial Bank Loans?


The most common means of obtaining business loans that usually comes to most people's` minds is through commercial banks. But when it comes to obtaining loans at the instant when it is needed in order to finance pressing business needs, it is often necessary to think again. Apart from the bureaucratic delays associated with bank loans, there is also the issue of a very low approval rate. Indeed, obtaining loans from banks, especially for startups and businesses that have a poor credit score, can be compared without prejudice to climbing Mount Everest as to difficulty.


However, the issue of delay is virtually non existent with MCA funding. The main reason for this is that all most merchant cash advance companies require in order to make a decision is the sales records of the business for a few months. Even a poor credit score will not stand in the way. In short, the time it will take to secure a cash advance will be less than a week, usually within 72 hours for most lending firms.


One other issue that poses a major obstacle to securing loans from traditional sources is that of collateral. So long a business is unable to provide the required collateral it cannot obtain a loan from a commercial bank. And, of course, collaterals are not that easy to provide. Even if they were, the risk of a personal loss in the event that the business fails is one that not every business owner can take. But there is absolutely no requirement for collaterals of any kind for MCA funding. It is such that if the business fails it is the lending firm that shoulders the responsibility.


•    Some things to keep in mind when opting for merchant cash advance


In spite of the enticing aspects of merchant loans, it must be said that it is somewhat more expensive than loans obtained from commercial banks. In some instances, depending on how much is borrowed and how long it takes to pay back, annual interest rates of merchant advances could be quite high. It might not also be comforting to know that there is no reward for early payments. It is even the case with MCA funding that early payments tend to increase the annual percentage rate.


All in all, a cash advance stands as a better option if one is to consider the ease and speed with which it can be obtained. This easy access to fund could even prove to be the difference between the survival and collapse of a business.

Published inPBC Blog

What You Didnt Know About Business Funding with Merchant Cash Advance

There are often times when a business will be in dire need of capital. Such situations could occur when a business franchise is seeking to expand, to embark on new lines of production, or even to purchase the machinery it needs to improve its production. There are also times when a business might just simply need a lump sum of money to get through hard times and getting business funding in the form of loans is often the only way out. But getting loans can be a very daunting task especially when traditional sources are explored. If this is the case—and it is—then businesses would do well to turn to other directions of if they must succeed.


There are quite a number of options apart from commercial bank loans which business owners can take advantage of in this present time. But one that has often proven to be of immense benefit to firms is merchant funding. However, some business owners have maintained skepticism towards merchant cash advance. They either do not consider it to be of equal standing with, if not a better option, to commercial bank loans. Of course, there are quite a number of reasons for this bias which shall be sufficiently dealt with. In the meantime, however, focus shall be on what exactly a merchant cash advance is, and how it can be exploited to finance business objectives.


What are merchant loans?


The first thing to know about merchant loans is that from a technical point of view they are not loans; that is, they are funds given to a business over which it has to pay interest as is the usual practice of banks. On the contrary, merchant cash advance, as a source of business funding, is a commercial transaction which involves a business obtaining a lump sum of money from the lending firm in exchange of a share of its future credit sales. At first, this might be a bit difficult to understand but as the discussion unfolds, it will become quite clear that the process of obtaining a cash advance is much simpler than it sounds.


For our own purposes lets us take the example of a restaurant seeking funds to open a new retail outlet. This is a good scenario since merchant loans are especially suited for businesses with high rates of credit sales as this would make it quite easy for the advance to be recovered over a short period of time. So the restaurant approaches the merchant advance firm seeking business funding. What then happens is that the lending firm asks to go through the records of the credit sales of the business to ascertain if the advance can be recouped easily. In most cases, only the records of the previous few months are needed and the final decision is almost always based on this.


How do merchant loan providers gain profit?


Since it has been stated that the lending companies do not give out cash with interest one might wonder how on earth they make a profit. In the actual sense, the companies usually multiply whatever amount it is they lend to businesses by a certain factor that is typically below 1.5 to arrive at the total amount the business is to pay back.  This is amount is deducted from the credit sales of the restaurant until the money is repaid.  It is a standard practice for the firm to stipulate that a certain percentage of the credit or debit card sale is used to offset the merchant business funding. This is percentage is usually chosen after considering the amount of the advance provided as well as the estimated revenue of the business. Of course, most merchant cash providers only cater for the short-term needs of businesses and are always looking to recoup their investments within a short period of time. Usually, the target period to recover an advance is one year or much less. So, it is with this in mind that the lending firm decides what fraction of daily or monthly credit sales, as the case may be, that will go into the repayment of the debt.


Are there flexible payment options with merchant loans?


As for how the debt is repaid, there are two options available to the business of repaying the merchant business funding loan. The first option requires that the percentage decided on is to determine what fraction of the sales goes to the lending company at the agreed interval. For this to take place arrangements are made with the credit card provider of the business In order for a fraction of the sales to be automatically remitted. The interval could be monthly, weekly, or even daily, depending on what has been agreed to by both parties. One implication of adopting this method of payment the time for the payment to be completed is quite flexible. If for instance it is estimated that the credit sales will be a certain amount per week and based on this it is expected that the entire advance will be redeemed in 12 weeks, it can be deduced that if the actual sales fall below or exceed this value, the time will automatically change.


It is often thought that this payment mode is preferable in that it allows payments to be in accordance with the state of affairs of the business. The better a business does, the more quickly the debt is repaid and vice versa. However, in cash advance business funding there is no reward for early payments as opposed to commercial bank loans where certain benefits obtain. In short, the other payment is very much like the first and a closer look will only reveal that they are both of the same effect except when actual sales differ markedly from estimates.

In the other method, a fixed sum is paid at the predetermined interval regardless of whether or not the credit sales are high or if they plummet. The fixed amount is computed using the percentage as in the previous method, but in this case, the amount arrived at based on the original estimate of the credit card sales becomes the final amount that is paid even when actual sales differ from the estimate. This method has the advantage of providing for fixed payment duration. While this might be more favorable to the business funding firm, it might place a considerable strain on the cash flow of the business especially if payments have to be made on a daily basis. In all, regardless of the method adopted, repaying merchant loans is a straightforward process.


Why is merchant cash the right option for you?


Of course, there is always the option of commercial bank loans. But it is often difficult for businesses to obtain loans from banks because of the rigorous process involved. Moreover, the chances of being turned down are quite high when compared with merchant cash advance. And this happens after a very long period of waiting. So in a nutshell, if one has an urgent need for business funding the best option is most likely a merchant cash advance.

In addition to delaying the issue of having a good credit score also comes up when seeking loans from banks. So, most firms spend a good amount of time trying to improve their scores. The good news, then, is that a good score is not required for a cash advance. Although the lending firm might perform some background credit checks, the decision whether or not to issue the advance is made without much regard the level of the score.


One other thing that poses a hindrance to securing loans is the inability for most businesses to provide the kind of collateral that banks normally require before providing business funding. It is especially significant that lending companies do not request collaterals before providing an advance. That being the case, there is no question of a personal loss for the business owners if the business is unable to redeem the advance and it is often the lending firm that is at a risk of losing its business funding investment if the business fails.


Some objections to merchant Loans


In spite of the significant highs of merchant loans, some object to it because of its cost relative to other sources like bank loans. While this objection might be valid, it does not take into cognizance the fact that the success attained with merchant loans more than compensates for its high cost as any business owner whose business has been saved by a timely cash advance can attest.


And although it is true that the annual percentage rate associated with merchant loans is high, this rate has nothing whatsoever to the actual monetary cost of the advance. Some are also of the opinion that, since business funding is so much easiear with merchant loans, it could lead a business into a debt trap. Of course, this argument is not sound; for it is the purpose of an advance to solve specific business problems which shouldn’t always arise. In all, merchant loans have proven a good, if not a better alternative to commercial bank loans.

Published inPBC Blog

Merchant Cash Advance The Reliable Option for Your Retail Finance Needs

Maintaining and expanding a retail business may seem like a walk in the park but that is not certainly the case. There are some lows that a retailer will need to shoulder and this includes the financial challenges. Running to the traditional lenders might turn out be an exercise in futility due to their low approval rates coupled with their long and strenuous application processes. Retail finance could be obtained from the merchant cash advance, MCA providers who have taken over the lending world with a storm.


MCA companies are among the alternative lending options that a retailer could opt for retail finance. They represent a prompt and more reliable way of sourcing for funds to meet your working capital needs as a business. While it is a relatively new way of lending, it has enjoyed much acclaim among retailers who depend on it during hard financial times in business.


What is really meant by an MCA?


Merchant cash advances are among the alternative loans that a small business owner could consider. The other forms of alternative loans include the asset-based loans, short business loans and the loans on future receivables just to mention the key types. An MCA is simply a cash advance that is given as a lump sum, as an investment in the future credit sales of a given business.


Retail finance offered in this way is to be repaid from the daily credit sales usually as a fixed percentage of the credit earnings for a given day. Such a repayment schedule is quite a convenient one as a retailer will only have to repay part of what they have generated. The other palatable bit about seeking for retail finance by applying for an MCA loan is that you won’t need to provide any form of collateral.


How can one apply for an MCA?


Before you consider approaching an MCA provider for retail finance, you need to be a business which accepts the use of credit or debit cards during transactions. You also need to be a relatively established business for you to be considered by most of the MCA companies. Being in business for at least one year will work in your favor. Since no form of collateral is required during the application process, you will need to prove that your retail business can sustain the repayment schedule. This is why most of the MCA providers will require that you generate at least $10,000 on a monthly basis.


The following are the requirements that you will need when applying for an MCA for retail finance:


•    A financial statement of your retail business

•    A copy of your previous credit sales in the recent past

•    A copy of your estimated credit sales in the near future

If you are a retail business that has a history of bad debts or rather bad credit, you don’t need to fret about this as most of the MCA providers will still consider you for MCA loans.


The approval and repayment of MCAs


Traditional lenders have been characterized by their low approval rates when it comes to the small business loan applications. As a retailer, you can rest easy when you apply for retail finance from the MCA companies. They have become renowned due to their high approval rates that could rescue you during your financial emergencies as a business.


The approval


After applying for an MCA loan, the processing and approval could be done in hours or at most just a couple of days. Most of the MCA providers who offer retail finance will approve your loan in as short as a day or in three to five days. This is way better than the time small businesses used to wait for their traditional loan applications to be approved, which was at times months.

 

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Repayment schedule


Repayment of the retail finance obtained through an MCA loan is usually undertaken with the performance of the retail business in mind. You will have to remit a fixed percentage of your daily credit earnings. This is quite sustainable though it is actually expensive in the long run. During days with high credit sales volumes, you will have to part with a larger share of your earnings while you will be left with enough working capital to carry on as a business.


Compared to the traditional lenders who will need you to repay your loan with no regards to your business performance, MCA loans are a great relief and quite a considerate lending option. While MCA loans for retail financing are high-interest loans, you could make use of the retail finance to have a favorable return on investments.


Apply for MCA Loans for Retail Finance for these key reasons


It is everyone’s business to have a piece of the pie when the deal is too good, you need to tap into what the MCA providers are offering in terms of retail finance for the following reasons:


•    Simple application processes

The MCA applications are the simplest among the forms of lending and this has been further simplified with the online MCA providers. You will need to provide only a few documents while seeking for retail finance. This form of alternative lending is devoid of the long and strenuous loan application procedures. It is generally simple and very convenient to consider MCA loans as a source of finance for your business.


•    You will enjoy high approval rates

It seems like the MCA providers came to the rescue of small business entities such as retail stores which had to contend with the low approval rates from the traditional lenders. If you are seeking for a reliable source of retail finance, look no further than the MCA providers in the lending world.


•    No need for any form of collateral

If you are scared of losing your dear possessions just because of defaulting on a loan, try out MCA loans for your retail finance needs. You won’t need to provide the MCA Company with any form of collateral when applying for an MCA loan. This is such a kind offer from a lender and you should take advantage of it.


•    A bad credit history shouldn’t deter you

In case you are a retail business seeking for retail finance, having a bad debt history should not be a reason why you are not accessing that much needed financial aid. MCA providers have taken this into consideration since you can still apply for an MCA loan despite having a bad credit history. Provided your business meets the cut in terms of being established and having a reasonable revenue base that can sustain the repayment model, you are good to go.


•    MCA providers are prompt lenders

When faced with urgent financial needs, MCA providers are the people to turn to for your retail finance. Besides having high approval rates, they will additionally approve your loan and disburse it in a timely fashion. If you are running low on your working capital, or when you need to expand your retail business to cater for more people don’t hesitate to find a suitable MCA provider.


•    A sustainable and reasonable repayment schedule

The repayment of the retail finance from the MCA providers is hustle free due to a sustainable and affordable repayment model. You will need to submit only a fixed percentage of your daily credit sales. The implication of this is that you will be left with enough cash to sustain your business throughout the repayment period. It is more reasonable compared to the traditional lending options that would require you to pay fixed amounts without putting into consideration the performance of your business.


While it may seem like you will fork out a lot of cash to cumulatively repay your MCA loan, it is also good to factor in the revenue that you can generate with retail finance that is offered by the MCA providers. The return on investment should be a motivation for you to use the funds prudently to generate favorable profits.

 

Read More: How excellent financial advice is helpful for your business


How you can make use of MCA loans


Your business could utilize retail finance offered by MCA providers in the following ways:


•    To expand the business to meet extra demand; due to their prompt nature you can apply for an MCA loan to increase your stock to keep up with the rising demand

•    Take advantage of a business niche; if your projected return on investment is looking pretty you can consider taking a cash advance to capitalize on this.

•    To aid you in meeting your working capital needs; when you are faced with cash crunches, it will be prudent to for you to approach MCA providers for retail finance.


In Conclusion


MCAs are a suitable alternative lending option for businesses which are in need of retail finance. They represent a faster, more reliable and convenient way of getting funds for a small business. Retail businesses which accept credit or debit cards with a steady flow revenue can consider taking a merchant cash advance. You stand to gain as a business especially if the return on investment works in your favor.

Published inPBC Blog

Business Finance for Medical Practices Made Easy

If you run a small business such as a medical practice, it is evident that you have experienced some funding difficulties such as lack of enough business finance to run your business. However, there are current trends in the lending industry that provide small business with viable funding alternative.  A merchant cash advance (MCA) can offer you with better flexibility and more significant opportunity for approval that a traditional bank loan. If you do not have any information about these types of business funding and their numerous advantages, read through this piece of work.


What is merchant cash advance (MCA?)


A merchant cash advance is the amount of money given upfront on future credit card sales that serve as a working capital as you get your business up and running. Merchant cash advance is the perfect lending alternative because your business loan application will be approved easily with a quick turnaround time.  For this reason, numerous small businesses are turning to these lending alternatives. This is because it can be difficult to obtain business financing from a traditional bank.


Read More:
Merchant Loans are Now the Way to Fund All Businesses

How is a Merchant Cash Advance loan paid back?


You are likely deliberating how merchant cash advance works when it comes to repaying the loan given to the small business. Note that this is where this type of business finance tends to be unique. In most cases, a merchant cash advance lender will be repaid through a portion of the business’s future credit sales. The average repayment duration will vary depending on the amount given to the business and the portion of the agreed interest rate. Nevertheless, the loan repayment is scheduled to take something between 4 to 18 months. Therefore, you need to choose the best merchant cash funding option that will suit your specific business requirements.


How to determine the Merchant Cash Advance Payments


One of the greatest advantages of obtaining your business finance from a merchant cash advance lender is that they provide flexible payment methods. This is because the payment fluctuates based on the sales you make on a particular day. If your business is experiencing a slow month and bad sales, you will not have to panic how you will repay your loan. Since you will have slow sales, your lender will be forced to deduct low amounts during this period. Then again, when your business performs well, you will have the advantage of repaying your loan even quicker. Note that the majority of small business owners prefer this type of business lending alternative for their flexibility and ease of use as compared to various loan alternatives.


Five ways in which business finance can be helpful to your business

  • Filling in the gaps

It is evident that situations may always arise that produce cash shortages which may affect the way you run your business. On top of that, your business cans experience cash shortages during a certain period of the year when few customers visit your business. For this reason, you will need to obtain a business funding from merchant cash advance to keep your business up and running.

  • Boosting your business’ day-to-day operations

Make sure you seize any opportunity that comes your way if you aspire to grow your business. For instance, you might need to employ the most experienced human resource, or you might want to purchase modern technology and medical devices. On top of that, you need to market your healthcare facility to grab the attention of new patient. You might as well need to restock extra medication like the flu vaccines. Note that all these things require money that you might not have at the moment. Therefore, you will need a working capital influx from merchant cash advance lenders to act as a booster shot for daily business operations.

  • Helps in expanding your business

As a business owner, your ultimate goal should be to grow your medical practice. Therefore, at some point, you will require some extra space, and you may need to remodel your current space or relocate to a larger place. You can as well add another location. Once you decide to expand your medical practice, you have to purchase your apartment, purchase some additional medical equipment and add more staffs. Note that this is a massive investment and it will require a lot of working capital more than what you have. However, you can smile since you can apply for business finance from a merchant cash advance lender near you.

  • Helps in reducing your debt

There is a likelihood that you are using various small businesses funding alternative to keep your medical practice in the industry. This might include periodic short-term loans, a line of credit or business credit cards or maybe you are servicing a commercial real estate loan. With this, you will be having debts surrounding you all over, bearing in mind that too much of debts will have a negative impact on your business credit score. It will as well divert your incoming revenue. A business financing from a merchant cash advance (MCA) can provide your medical practice the working capital required to reduce the burden of the debt.

  • Aids in disaster recovery

In most cases, you will realize that a working capital serves as a survival tool for your practice. Bear in mind that you don’t have the powers to control everything that takes place in your business. Assume your healthcare facility suffers from some disaster, or it loses a key investor. These things will have an instant negative impact on the business’ cash flow. You will require money to do some repairs or hire a new service provider. On top of that, you will need enough funds to see you through the transition.  Apply for a business finance at a nearby merchant cash advance lender, and you will get that money instantly.


How a good planning can boost your working capital


Note that healthy cash flow is as essential to obtaining a successful medical practice as providing excellent patient care. Proper planning is key for the management of all components of medical practice and will never be overlooked as the primary ingredient for sustaining financial steadiness.


Planning gives you an opportunity to manage your business cash flow effectively, as it helps you in making good decisions on when and how to borrow extra funds. It as well helps in uncovering various ways to minimize business expenses. Note that saving money provides you will enough funds to work with.


Advantages of a Merchant Cash Advance


It is not a loan

The business finance you obtain from an MCA is different from a business loan that you get from traditional borrowing. If you run a medical facility that accepts credit card payments,  a merchant cash advance firm will give you working capital for the right to deduct the payment from future credit sales.  


Credit history not necessary

When you apply for a business funding in the traditional bank, your lender will ask for your credit score that is determined by your credit history. This means that if you have a poor credit score, your loan will not be approved. However, with merchant cash advance, the factoring firm will give business funding to business with the only 60-day history of credit card sales. It is evident that the merchant cash advance company understands the general risks that are related to factoring on major credit cards. Therefore, the merchant lender does not need your business or individual credit card history to determine if your business is edible for business finance.   


No collateral required

In most cases, traditional bank lenders will talk of five Cs they want potential borrowers to possess. They include the capacity to pay back, good character, good loan condition, capital in business and collateral. For this reason, a new borrower, or a small business owner will require more collateral so that they can offset the risk of the lending company.

However, with a merchant cash advance company, you will not be asked to provide any collateral since your credit card receivables will serve as the security for the business finance provided.


Less risk to the business owner

If you decide to obtain a traditional loan, the risks will be spread between you and your lender. Once you fail to repay the loan, your lender has the authority to take whatever you presented as collateral and even sue you to force you to offset the remaining balance. In either way, your credit history will be significantly affected.


However, if you obtain your business finance from a merchant cash advance lender, the factoring firm that provides the funds will take the risk. Note that a merchant cash advance is not a loan and the business funding is given to you, and then the lender deducts the payments from the business’ future credit sales.


Conclusion

A merchant cash advance is one of the best financing alternatives that pre-pay your business for its credit card receivables. They help your business get the required funds when they could not qualify for traditional loans.

Published inPBC Blog

Merchant Loans are Now the Way to Fund All Businesses

Thinking about businesses and the loans that they use, so many are wondering why are merchant loans the way to go? Speaking with some companies about the pros and cons of using these, compared to those traditional bank loans, might be the best way for you to go. This is always worth a try. You want to ensure that you’re making the right choice and through merchant loans, you can be sure that this is something that is going to keep you afloat in the end.


With so many loan options out there, many people often wonder which is the best one to choose for their business? Which one is going to give them the benefits that they’re looking for when it comes to cashing out and being able to cover the costs of running a business, as this is a hard thing to do.


Do not waste your time when it comes to those other loans because you don’t have time to waste and you want to make the most of what they have to provide you with. Cash advances provide you with the benefits your business is after.


You should think about the many ways that merchant loans provide you with a quick and easy way to get the funding, but also compare them to some of the other loans out there. Here is a breakdown of the many loan options out there that businesses have to work with. You might be surprised to find that some of them provide everything you could ever ask for while others you were thinking about before might not be as appealing anymore.


Take a look and find out for yourself how these advance loans stack up to the other competitors in the loan market!


Read More:
What is a Merchant Cash Advance and What Kind of Business Uses it?

Merchant Loans


Merchant loans are quickly gaining popularity throughout the market. With so many loan options out there, this one tends to be the one that provides the most security and is the easiest to get. Look at the benefits that come with this loan and then decide whether or not this is a merchant loan that is right for you and all that you want from a loan that can cover the costs of your business.


You do not have to worry about being denied because of the credit history or score that you have. This is something that everyone has to think about. You don't want to worry about not being able to obtain a loan because you have less than perfect credit. This happens to so many people which means their business does not get the funding that they are in need of.


Additionally, you work with a broker so they can answer any and all of the questions that you have. You do everything through the internet, so there is no need to go sit in a waiting room for an extended period of time waiting to find out more about the loan. You can go right online, sign up for the loan through the application and then make the most of what they have to provide you with. It is as easy as that.


These advance loans provide the users with everything that they want since they’re easy to get and provide the user with everything that they need when the time comes. You can feel much more confident in the end using something that is going to provide the security that you can feel good about.


One of the best things that businesses have noticed is that in addition to not needing a perfect credit score for advance loans, they also only have to be in business for 6 months and have a steady income from clients and customers. This puts them in the best position possible to get more out of the work that they do.


Once you’re done paying off the loan through a percentage that is taken from each of the debit and credit payments made to your business, you can borrow even more. This is something that gives you a steady stream of borrowing capabilities, especially if you make a good impression the first time around. You will never have to worry about not being able to get a cash advance or covering the costs of a business ever again.


Merchant loans are always there when you need them. You can get funding in as little as a week, which is something that you’re unable to get from any of the other options out there. This is one of the biggest reasons why so many businesses are choosing these loans over some of the other ones that are out there. You never have to worry about not being able to cash out or cover costs when you sign up for cash advance loans.


Look into some of the other business funding options.


Traditional Bank Loans


The biggest loan type that people know about is from traditional banks. They are well known for providing loans of all types. Business loans are something that they can hand out to many businesses, which is why businesses tend to go through them. They’re secured and provide many loan options which might fit the business owner's needs.


With this being said, the traditional bank loans are harder to get. Many of the banks want the business to have been running for some time, have a high overhead of income coming in, which takes away from many of the small businesses out there and they have to make sure to have almost perfect credit. This can be hard for those that are just starting and may not have the best credit.


Additionally, the loan process can take a month or more to go through. Sometimes, businesses do not have this amount of time to wait. It is something that is going to cause a lot of problems in the end which is going to result in a lot of issues with the business when they’re unable to get the funding that they need.


Traditional bank loans are something that so many people are getting away from for these very reasons. When you do not have the time or effort to look into all that is out there, you shouldn’t have to worry about a thing in the end. You should feel good about being able to move forward with the traditional bank loans. You should know you’re making the right decision. This is not the case.


When people try to get traditional bank loans and are denied, often times they go to the cash advance loans out there and get an advance so they do not have to wait or go through the lengthy process only to be denied at the end. This is not something that anyone wants to go through.


Make sure you’re choosing the right loan for your business and one that is going to work with you. What other options do you have besides these traditional bank loans or merchant loans? Find out more below.


Line of Credit Loans


Line of credit loans are another business loan type that some try to get. Again, these are a bit trickier to get, much like the traditional bank loan for businesses. Through the use of the line of credit loans, many businesses are able to use the line of credit that they have open for their business to fund many of the business things they have funded.


There are a couple of problems that arise with this type of funding. One, the person is unable to open a line of credit if they do not have the best of credit or equity within their business. Two, the person might have a line of credit already but it is not enough and the lender is not going to increase the amount because they have not made gains throughout the business.


These issues can cause problems when the company wants to continue to provide the services but are unable to do so because they cannot get the right loans for the job. This is something that they have to think about when the time comes. Do you want to risk using this line of credit when you’re unable to get enough and when you only have a little left to use? Will MCA loans be a better alternative to this?


Line of credit loans are great for so many things or if you’re an established, large business that has a decent amount to work with. However, if you’re a smaller company that has not yet been established throughout the market, then you will not be able to cash out big with this type of loan.


Take the time to look into the line of credit loans out there to find out if they are for you. If you do not qualify for them, then there are merchant loans that you can qualify for. Find out more about these loans and what they have to offer you. Be happy about the funding that you choose to go with.


The Process of Obtaining Merchant Loans


Merchant loans are gaining much more popularity throughout the world currently. With so many people wanting alternative funding for their businesses or for personal use, they’re looking towards loans that are going to provide them with everything that they need. The person will never have to worry about not being able to cash out on all that is there. With this being said, businesses are now moving towards the loans that provide them with these benefits and so much more.


Now is the time to check out the merchant loans and find out how you can obtain one for the business that you have. Never have to worry about not being able to cover the costs of running a business, especially if you need cash to do so. They are going to be there each and every time you need to reach out to someone or something to make use of.


Merchant loans were never really a big thing because people did not like unsecured ways to obtain money but they have come a long way and have advanced throughout the years. Now you can work with a lender that lays everything out for you so there are no surprises, ever, when you work with them. They want to make sure that you’re happy with everything and this is one of the ways that they make sure that you are.


There are four simple steps that you have to take in order to make sure that you get the most from the merchant loans out there.


Go online and fill out the application. From there, you wait 24 hours for a broker to get in contact with you. You can then choose the lender options that work the best for you, depending on the options that are given. Once you make a choice, you can then let the broker know. They will require you to send some documents, bank information and identity proof. Then you sign the agreement. Once all of this is done, which should only take a day, then you obtain the merchant loans within 72 hours.


Everything is done within a week, so you never have to worry about having to wait months or more for the loan that your business needs. This is one of the biggest reasons to work with merchant loans over many of the other business loan options that are out there. You can make sure that they have your back and you don’t have to worry about a thing.


Who knew that obtaining merchant loans was this easy? A lot of people think it would take a lot more to obtain financing and a loan that is going to help them and their business prosper in the market. Now you have someone on your side providing you with a way to do so.


Read More:
Obtaining Fast Loan Approval through Merchant Cash Advance Loans


Don’t Take No For an Answer


Just because the bank has told you no regarding the funding that you requested and applied for, does not mean that everyone else is going to say the same thing. You will know that you have someone there to provide the loans that you need when you apply for merchant loans. They are there when you need them, no matter the situation that you’re in.


As long as you’re a business that has been running for 6 months or more, have a steady income from clients and customers and are able to provide the necessary services then you should not have an issue in the end. This is something worth thinking about since you want to make the right choice in the end on what to go with. You are covered, as you should be so you can feel more confident being able to get the funding that is needed.


Even if someone else says no, you just have to try again with a different loan that is out there. You can be sure to get what you need when you need it. The time is now to cover your company and make sure that you’re doing well in the end. No one should have to worry about not being able to have the coverage, as you should never worry about how your company is going to make it to the next quarter.


So many small businesses have shut down because they could not find the financing that they needed. They did not look into merchant loans, which put them behind. They tried to catch up and were unable to do so. Don’t let this be you or your business. Find a way to prosper in the field and get more out of the merchant loans that you want to use.


With the loans out there, you can make sure that you’re choosing the right ones when the time comes. This can put you in the best position possible to get all that you need from the loans and whatever else comes with them. Take the time to look through the application or even email and ask any questions that you might have before applying. They want to make you feel comfortable using their loan services. A merchant loan is right for everyone, so make sure that it is right for you.


Sign Up Today for Merchant Loans

Today is the day to sign up for merchant loans. You can be sure to get more out of the loans that are out there when you make the right decision to move forward with all that they have. Take the time to look into all of the options and then go with the ones that work the best for you.


With the right merchant loans out there, you can feel more confident than ever knowing that you have exactly what you need when you need it. Through the use of merchant loans, every business is now able to cash out on all of the benefits that they would not normally get from the traditional bank loans out there. Make sure that you’re getting all that you need when you need it.


Nothing should stand in your way when you have the right loan, pay off the things you need to pay or even just order new inventory. Make the most of the business that you run when you get the loan that is going to be able to help you do so. No one said that this was easy, so now you have to be the one that fills out the application and gets the funding help that is needed. Everyone can be happy with the outcome when this happens.


Take the extra minutes to go online, check it out for yourself and find out if your business is going to need this when the time comes. MCA loans have helped so many out in the process of being able to rebrand and remake their businesses. They want them to be big in the industry and through the use of the merchant loans, they have all succeeded and ended up doing so. This is something that doesn’t just happen.


It is also something that people did not wait months to get a loan for since this is what traditional banks are going to want you to do. When you want to make a change or when you have to pay for something for your business, then you want to make sure that it is done sooner rather than later. It is going to provide you with the benefits you need and nothing less. Make the most of the change, make the most of all that is out there and know that you’re covered when the time comes.


Take a chance, make a change and make the most of what you get when it comes to choosing merchant loans and all that they provide. So many businesses have been surprised to find that they should have been using these loans all along. It is something that they never thought to use and now they’re glad that they do, as they can always get the funding that they need when they need it with merchant loans.


Now is the time to take the next step and do what is right for the company that you own. You need to make sure that you get the help that is needed when it's needed. Feel good about it in the end.


Sign up for the merchant loans today and make sure that you’re covering all of the business costs that you have for tomorrow. There is a little something for everyone, so you can feel completely comfortable working with the right person at the right time.


Find out what is out there for the merchant loans and what you can get from them to cover all of the costs and other factors that go into running a successful, prosperous business. You can find that these merchant loans bring everything that you need to the table.


Are you ready to sign up with them? They’re waiting for you!

Published inPBC Blog

Easy Funding with Cash Advance Direct Lenders

Finance provides oxygen to a business. Just like a human being cannot survive without oxygen, a business cannot survive without funds. There is a constant inflow and outflow of funds in any given business, and to retain its position in the market, a company should have sufficient funds at all times. A company cannot just depend on the owner’s funds, but it also has to rely on outsiders to be able to maintain its position in the market in the long run. Alternative sources of financing such as MCA Direct Lenders are also necessary at times to help a business expand, and reach the next level, or to cover any kind of cost that comes with owning a business.


What is direct lending?


Direct lending is the process of giving corporate loans. It does not include any loans given by the banks. Direct lending does not involve any intermediaries such as brokers. Crowdfunding is one of the examples of direct lending.

Borrowings are one of the ways out of which cash advance direct lenders come on the top of the lenders’ list. Merchant Cash Advance (MCA) is one of the known finance structures. It provides you working capital with a price to pay a fixed proportion of your business’s future credit card sales.


However, Merchant Cash Advance should not be confused with a loan. It fulfills your working capital requirements in exchange for your small business’s credit card receipts. Other small business loans can be repaid by other options but here the advantage is that your advance is repaid only when you earn revenue from your credit card or debit card sales. A cash advance does not impose any restrictions.


Merchant Cash Advance is one of the best cash advance direct lenders as it has a very simple application process and the cash advance is credited to firm’s bank account within a few hours from the approval date. It provides you funds with just one single go. Bad credit is not an issue to worry about if you are going for this financing option.


These cash advance direct lenders or MCA providers have a qualification criterion. That is, the firm should be in existence for more than a year. Plus, the company should not have any past bankruptcy records.


These cash advances are the best source of funding for small companies.


There are many lending options available for a small company in order to start its business such as:


1)    
Venture Capital: This source is good for tech companies that have a very high rate of growth in information technology and communication areas. It is one of the popular cash advance direct lenders but comes with many detriments.


2)    
Angel Brokers: They are the rich people who are former executives of financially sound companies. They give direct lending to small enterprises and usually make an investment in the initial stages of a small business.


3)    
Accelerators: They generally make an investment in the technology sector. They provide their financial support during different stages of business. They are also known as business incubators. Accelerators ask future business and already established firms to combine their resources.


4)    
Subsidies: There is a possibility that government provides a subsidy to start your business. If a person comes up with a very creative idea. He is ready to take initiative to start a small business. Then, the government will be ready to provide your business some assistance in the form of subsidy.


There are many lenders in the market but if you are looking for the ideal cash advance direct lenders, then Merchant Cash Advance is the right choice for your business since it has a high approval rate, provides funds as fast as within 24 hours, does not have much eligibility requirements, and is open to all types of small firms.

Published inPBC Blog

Merchant Cash Advance Lenders Providing The Best and Easiest Loans For Your Business

As a business, you need to work with someone that can provide the loans that your business needs to continue to run effectively right when you need it. Not everyone starts off with a successful business which is why Merchant Cash Advance Lenders are out there. Bank loans can also be obtained, but this is something that can take a lot out of the person. When it comes to obtaining a traditional bank loan, it takes time and you may be waiting quite some time to even find out if you qualify for the loan in the first place.


Reach out and see if
MCA loans out there are going to provide you with exactly what it is that you need. Merchant cash advance lenders are out there waiting to help you out with the MCA loan you’re trying to obtain.


Read More
: 5 Questions to Ask Before Applying for a Small Business Loan:


Differences Between MCA Loans and Traditional Bank Loans


There are many major differences that come with both of these types of loans. This is why it is important for businesses to consider them when it comes down to it. Knowing what the differences are can also help you choose which one is best for your unique situation. Don’t find yourself without the necessary funding required.


Bank Loans

•    Longer processing and acceptance time

•    Meet at the bank for the loan that is needed

•    Requires a lot of paperwork and documentation

•    Payment has to be made each and every month at a specific time

•    Based on your credit rating


Merchant Cash Advances

•    Takes as little as 48 hours, no more for acceptance and processing

•    Do everything right from your office, without leaving

•    Requires minimal documentation and paperwork

•    Payment is made through credit and debit card sales that your business makes

•    Payback terms go off of your credit rating, not acceptance


Each of these provides a different thing for the person. Some enjoy working with banks, while others want to skip the long, tiring process entirely. However, they do not know where to go for that. Merchant cash advance lenders are the ideal lenders that they can turn to. They will receive funding in less time, with less hassle, and when you need it most. It is just that easy.


Read More:
Merchant Cash Advance: Obtain Quick Fast Loans in MInutes


So Many Businesses are Turning to MCA Loans


Many businesses out there are turning to MCA loans for all of their business funding needs. They do not have to worry about using a traditional bank since the loans are there when they’re needed. Worried about having to go to the office to fill everything out? Don’t be. With merchant cash advance lenders, the entire one-page application can be filled right on the internet, from the comfort of your office. Never will you have to meet with anyone to obtain the funding that your business needs. They want to work and help everyone. They get back to you within 24 hours with offers that match the needs that you have. It is quick and easy cash, and the best way to cover all of those overhead costs of owning your own business. Find help today.


Quick Payment Terms


Credit scores are used by traditional banks to find out if you’re worthy enough to even get the loan. If you have less than perfect credit, then this is going to be a problem. They usually deny those that do not have a perfect credit score because they’re afraid of having the person not pay the loan back.


When it comes to working with merchant cash advance lenders, you never have to worry about this. They understand that not everyone has a perfect credit score for whatever reason or another. They work with everyone to give the funding that is needed. How does it work exactly?


You do have to give your credit information since this is not how you're accepted but it does help them determine how the loan will be paid back, in what percentage and how much interest will be charged. If you do good and keep up on everything, then the merchant cash advance lenders will continue to work with you and your business. This is always a great thing since you will have unlimited cash advance potential each and every time you work with them and pay the advance back.

 

The best part of paying the advance back though is that you do not have to worry about remembering to pay one large payment back each month. The merchant cash advance lenders will just take a small percentage right out of the daily debit and credit card sales that your business makes. This means you have nothing to remember when it comes to paying them back. They make sure to secure the payments this way and you can make sure that they’re being paid without having to remember to do anything - it is easy all the way around - for everyone! The merchant cash advance lenders are the best way to go!


Read More:
Obtaining Fast Loan Approval Through Merchant Cash Advance Loans


Why Wouldn’t You Use a Cash Advance?


When it comes to working with merchant cash advance lenders, you can make the most of everything that they provide. Why wouldn’t you use them? They’re easy and come with so many benefits that they provide you with just about everything you need.


Take the time to find out who is out there providing the lending that your business needs. You want to feel good about having the right cash flow and through the use of the cash advance, you can make sure that you are. These lenders understand that starting and running a business is tough. This is why they provide the option to move forward with their cash advances and help your company out.


If you’re ready to work with merchant cash advance lenders, then take the next step. They can provide you with all that is needed. Never have to worry about how you’re going to pay back the loans in the end. They want to help businesses, big and small that need funding. Allow them to give you the MCA loan that is required. It is easy and well worth it when searching for the best loan for the job.


Why wouldn’t you cash in on these benefits? Other businesses are making the most of them and now you can too!

Published inPBC Blog

Choosing the Correct Small Business Cash Advance to Finance Your Business Needs

When you want assistance with your inventory purchases or equipment requirements and other small-scale funding needs that have to be met immediately, a merchant cash advance is ideal. Merchant cash advance is a type of small business cash advance that is financed on the future receivables via credit/ debit cards.


Unlike the monthly payments on other loans, the merchant cash advance amount is repaid daily by taking a percentage of the daily credit card sales you receive. If you have good sales, the payments are completed faster. On the other hand, if sales are sluggish you may have to pay for a longer term.


When does merchant cash advance help?

If you require debt financing for buying new equipment, purchasing inventory and to meet short-term cash crunch in your business, a merchant cash advance is very useful. It is a small business cash advance loan that can fit your financial needs perfectly provided you avail the services of the right lender. The benefits of choosing an appropriate MCA lender include:


Easy Repayments

Since the repayments are calculated daily and depend on the credit card sales you record daily, you need to pay only when you earn.


Quick approval

Merchant cash advance is a type of small business cash advance that eliminates all the hassles you associate with conventional loans like long waiting time and elaborate application process. Merchant Cash advance can be applied online easily in one or two minutes and approved within 24 hours. You can access the funds you need in one or two days maximum.


Ideal solution

If you own a seasonal business or one that sees fluctuating sales, merchant cash advance is an ideal solution. This is also great for businesses that are testing new market opportunities or new products. You can get a loan amount that is 250% of the sales you do via credit card every month with many companies offering various kinds of merchant cash advance rates. The large fund amount you are eligible for via this type of small business cash advance helps you take care of the immediate funding needs of your business fully.


Factors to consider

Before you consider using a business cash advance bad credit loan you need to consider factors such as how seasonality impacts the volume of sales and your credit card sales percentage. You can approach merchant cash advance lenders to know about these criteria so you can meet your finding needs appropriately.


Read More:
7 Things About Funding Sources that Small Business Owners Don’t Know


In general, lenders will require your business to have been operating for a minimum of one year. You should also have revenue of a minimum of $5,000 per month.


Some small business cash advance lenders allow even newbie businesses with just three months of sales volume via credit card to apply for the advance. Such businesses will be provided a funding equal to about 50% of their monthly average credit card sales.  Once the business has paid off the advance, it can apply for a similar loan on better rates. Many lenders dealing in Merchant cash advance also offer other alternative loan options and even debt consolidation services that you can make use of to meet your financing needs.

Published inPBC Blog

 

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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