A merchant cash advance is usually paid depending on the agreed percentage of your future credit sales, and that is why they are never considered loans even while others refer to them as merchant loans.
And just like other industries, a couple of lenders grabbed this opportunity to charge borrowers exorbitantly higher interest rates that come along with hidden fees. It’s quite a pity that these lenders forced clients to overstretch instead of relieving them from their financial difficulties.
Even worse, there is a lot of false information circulating about merchant loans, and if you don’t believe, then try to do a quick Google search, and you’ll be surprised at the search results.
And the truth is that a merchant cash advance is still a helpful tool towards funding your business. It can help you get your business off the ground and compete with your competitors fairly.
In this post, I’m going to do a quick review of whether or not merchant cash advances are good business funding options.
Why MCAs is Suitable for You
Even while merchant cash advances are considered the last business funding option, they have their advantages, which include:
- These loans are quick to get. You can secure a merchant cash advance in a short time, say one week. And the best of all is that there’s no paperwork required to obtain it. When applying, your provider will have a look at your credit receipts to determine whether you are eligible or not.
- Your home will not act as security. Because merchant cash advances are not secured, you don’t need to have a collateral to qualify for it. In other words, you won’t forfeit any of your assets when you default on payment.
That said, merchant cash advances are still a perfect borrowing alternative. You can check around and see some advantages that come with different providers.
Even though a merchant cash advance comes with certain risks, it is still a good alternative when you want to fund your business.
The point is to do research and jot down some considerations before you can opt for the merchant cash advances. And like I mentioned, different providers will have different terms, so make sure you do your homework well.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loan solutions.
He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing
business funding for hard working business owners across the country.