Get Cash Advance Business Loans Right Away
Getting a business cash advance is simple and easy for most small businesses, and even those with low credit scores. While this does not apply to bank loans, these are the requirements of private lenders, and private lenders are among the top funders right now.
Most business owners looking for financing and unaware of current financial sector requirements and developments visit their local bank. This is the way people think you get a loan, through the bank. However, banks aren’t too keen on financing small businesses, and as a result, an entirely new industry has sprung up to meet the demand.
Private lenders often fill the gap between businesses and banks. There is the very large segment of small businesses that are stuck in the middle, that do not qualify for bank loans and yet require financing. Private lenders fill this gap by providing many of them with the much-needed business cash advance in the US.
Services provided by private lenders.
Financing provided by private lenders is generally referred to as MCA or merchant cash advance loans. These types of loans are short-term loans that have a maximum duration of 12 months. Payment options are easy and flexible, and small business owners can work with the financier to establish the method that best suits their needs.
The application process to apply for a business cash advance is simple and quick, and the private funder usually requires basic information, much less than banks. The basic information required by private lenders to provide an MCA is listed here.
1. How old is the business
2. The monthly gross sales of the business
3. How much do they require?
4. Purpose of funds, i.e. working capital, business expansion, inventory purchase, equipment purchase, etc.
5. Whether the business owner has other loans and is bankrupt.
These are some of the basic types of questions that a small business owner applying for an MCA must answer. The big difference between an MCA application and bank loans is the fact that banks require detailed information related to financial statements. Private lenders basically need a broad view of the basic realities of the business applying for the loan. Unlike banks, all decisions are not based on the statements of the small business.
While banks and private lenders may have a different way of looking at things, private lenders make sure to ensure that the basic realities of small business are what they should be. Banks rely heavily on financial statements when reaching a conclusion related to the financing of a business.
Features of the MCA loan application process
Although you may be asked about your credit score even when you go to apply for private financing. Credit score is not a determining factor for an MCA. These loans are unsecured loans and as a result, no collateral or collateral is required either.
When credit scores, collateral, and values don’t hold small businesses back, the chance of getting financing is much higher. These are the basic weak areas of most small businesses, hindering their ability to obtain financing in general. When these weak areas are eliminated between a small business owner and the financing they seek, the process becomes much easier for them.
Warranty is something that most small business owners find it difficult to show. Typically, only with a private lender can a small business owner expect to receive a bad credit business cash advance.
Another great feature is the fact that small business owners can also receive the financing they need very quickly. The fastest a business owner can receive money in his business account is 48-72 hours from the time he submits a completed application. At the latest, this period of time would be a week or two. Banks, on the other hand, are not in a rush to provide business financing, and a realistic time frame would be a couple of months to receive the money.