In this day and age, certain states and government agencies are looking to loosen the regulations on certain businesses and make it easier for them to start up. However, the financial industry still has many tough hurdles to get over if you want financing for your business. While banks may make it tough to get a loan, there are other forms of business loan alternative financing out there. If your business makes most of its sales through credit cards, you may want to investigate a merchant cash advance (MCA). Here are some benefits that can convince you into applying for one today:
1. Very Quick Funding
One benefit MCAs have that trumps bank loans alone is quick approval decisions and funding in your business's account. Some MCA providers even release the funds to you within one business day. Since it's not a business loan and there aren't all kinds of higher up loan officers needing to make approval decisions and slowly release the funds after weeks of waiting, you can get your funds quickly.
2. No Stellar Credit Required
As with all other financing, an MCA still has some checks on your business history that need to be done, but your business and personal credit ratings are not that much of a factor. The primary area that determines your approval for an MCA is dependent upon your monthly sales volume and business bank deposits. You will need to have been in business long enough to have shown consistent credit card revenue / sales, but if you've had problems with your credit or finances in the past that banks are picky about and used to deny you loan approval, you probably won't have to worry about those with an MCA.
3. Fewer Restrictions on Use of Funds
Many business loans or lines of credit are designated for specific purposes on what you can use them for. If you're approved for a business equipment loan, chances are you probably won't get to use any funds from that to lease new office space. With an MCA, the funds are yours to use for any purpose you wish whether its stocking up on more inventory, hiring new employees or buying more real estate. Most MCAs probably won't be in huge amounts, but if you qualify for one, you most likely won’t have to worry about explaining what you need it for.
4. No Collateral Is Required
Most business loans require some sort of collateral for the lender to claim because they need to be able to recoup their money in the event things go wrong and the borrower defaults. With an MCA, the only collateral your putting up is future sales because it's not a loan but a sale of those. You do need to be careful that you follow the terms set in the MCA agreement, so you don't trigger a default on it.
We provide this business loan alternative here at Everest Business Funding, and we're always looking for sales partners who can help small business owners understand why it's a great option for them. By becoming a partner with us, you can earn competitive commissions for sales, be a part of a team that's making a difference in the small business community. If you're ready to sell merchant cash advance services and want to become a partner with Everest Business Funding, visit our Everest partners website.