The Myths Vs Facts Of Merchant Cash Advances
Let's imagine that you are a business owner who is in need of some quick cash. What do you do in order to get that cash? Well, for most business owners these days the answer is to seek out a business loan alternative. They are known to be faster and more reliably attainable than some of the traditional business loans on the market. Even though the Merchant Cash Advance ("MCA") market has grown by leaps and bounds, there are still some myths and rumors about this service which ought to be dispelled.
Myth #1: Businesses Only Use Merchant Cash Advances When They Are Failing
This myth is patently wrong and everyone should know it. The reality is that businesses seek out a business loan alternative for a whole variety of reasons. Often it is the case that a company is having trouble obtaining a traditional loan from a bank for a host of reasons. It becomes easier for them to just get an MCA, so that is exactly what they do. Nothing should be read into this move other than the business requires quick access to working.
The use of an MCA is indicative of a company's confidence in its strength and ability to succeed.
Myth #2: Your Credit Will Be Negatively Impacted
Neither your business credit nor your personal credit should be impacted by taking out a merchant cash advance. This bares notice, because so many people have bought into this myth. While it is true that this type of funding will also not particularly help improve your credit, you are not going to see a negative impact to it just because you have made the choice to take out and MCA.
There are plenty of myths and pages of false information regarding business loan alternatives. What you are likely to discover if you dig a little deeper, is that the reality is actually a lot rosier.