Small businesses often find themselves in a cash crunch˳ There are very few options in such instances˳ One can try to borrow money from friends or relatives but there is always a question mark˳ There are loan sharks but it is risky˳ There are other options for the immediate supply of cash without any collateral˳
Merchant cash advance is the best solution for small businesses like hotels, restaurants, professionals, retailers and even small manufacturers˳ It is a straightforward deal and one is never beholden to friends or relatives˳ It is cash on demand, no questions asked˳ The process is relatively simple and there are minimum eligibility criteria making is the best source of funding for small business owners˳ There are inherent advantages and the cons are only a few˳ Consider the advantages of a merchant cash advance loan˳
Fast approval, fast disbursal
If cash is needed urgently there is no better source than this˳ One only need to apply online, submit a request and then the process is taken forward˳ Applicants usually receive cash in their bank account within 4 days of making the request provided every other requirement is met˳
Minimum paperwork
Unlike banks and other lending institutions that ask for a lot of documentation, this method of funding is the easiest when it comes to paper work˳ One needs to submit only the bank statement for the past six months, proof of ownership of business and proof of identity and residence˳ That’s that˳
Best for people with bad credit
People with bad credit can find themselves in a jam with no one willing to even consider their request for temporary funds to overcome their difficulties˳ If they go down this road, it is a reprieve and they can really get back on their feet˳ More to the point, their credit rating can improve with assistance from the right lenders˳
Best for businesses that wish to expand or launch campaigns
Traditional lenders may insist on a solid project report to show why borrower needs funds, how they will use it and how it will help them generate revenues˳ Small business owners rarely have the resources or wish to pay a chartered financial specialist to prepare such papers˳ Going this way helps them get their hands on cash that will help them expand the business, buy equipment, modernize, give their retail store a makeover or launch periodic campaigns to rope in customers˳
No collateral
One of the finest advantages that borrowers like is that there is no need to submit any collateral or guarantee˳ Just their personal word is sufficient to help them get their hands on sorely needed cash˳
Easy repayments
MCA repayments are usually tied as a percentage of the daily credit card sales˳ One can just as well opt for a fixed monthly repayment˳ In the former case, the repayment amount is low if sales are slow and higher if the sales are high˳ In any case, repayment extends over one year and by that time the borrower may have used the money wisely to increase revenues˳
Cons
The only cons are that the factor rate is high ranging from 1˳2 to 1˳5 that translates to the interest rate of 20% to 50%˳ But then, a non-secured loan is always expensive˳ Another factor is that the business should have been in existence for at least a year or so with a minimum turnover of $ 10000˳ These are minor niggles˳
The MCA advantages far outweigh the minor cons˳
Source by https://ezinearticles˳com/?Some-Top-Advantages-of-a-Merchant-Cash-Advance-Loan&id=9653802
