A Merchant Cash Advance is a type of obtaining a small business loan from non-bank lenders. Since this type of advance is taken from non-bank organization and individuals, it has restriction free, transparent and quick transactions. Smart business owners can have quick access to the loan amounts within hours of transfer.
A smart business owner in need of small loan amount to enhance his sales can opt for Merchant cash advance from a non-bank lender. MCA has a number of key benefits which allow flexible repayment and stress-free conduction of business matters. MCA can help a Smart business owner in the following ways:
Why do you need it?
High-interest rates are a cause of immense stress for the loaners. Apart from friction in collecting the loan as well as the interest amount, high-interest loans are practically less feasible than no-interest loans. Having a loan with zero-interest rate to pay on it is a dream of every business owner. Unlike all other forms of advances which have high-interest rates, MCA has a no-interest rate applied to it. It means that you will be responsible for returning the exact amount which you took advance for earlier. Smart business owners always opt for interest-free loans such as MCA for progression of their business.
Most forms of loans and advances have definite repayment deadlines which fall on the weekly or monthly basis. In many instances, the creditor fails to collect the withholding because of lack of sales, reduced income or any other factor. Such situations are highly risky and make the creditor liable to legal actions against him. However, there is no such case with MCA. With MCA you receive a credit/debit card. A pre-determined and agreed-upon percentage of sales made through this card is withheld from you on daily basis. This means that no sales lead to no or low withholdings on low-income days. The daily collection of withholding is also a factor or relief for the creditor.
Advance- not a loan:
Smart business owners know how complex loans can be at times. From the application process to the withdrawal of sums, each step on the way of taking a loan is a series of complexities which add up to the already existing stress of the business owner. MCA is a form of an advance. It is strictly not a loan. Therefore, MCA has a much simpler process of application, withdrawal, and withholding as compared to loans. MCA is based on the future credit debit or debit funds obtained from sales. Because of this reason, smart business owners can effectively focus on their business rather than focusing on the loan application process.
Flexible payment options:
Unlike major loan options which have strict repayment options on the monthly or yearly basis, MCA offers highly flexible options. It doesn’t bound the creditor for the collection of specific amounts of credit for repayment of advance. This option enables smart business owners to repay according to their sales.