Businesses are turning away from traditional lenders to get the working capital they need. As banks tighten their credit and collateral qualifications for borrowers, business owners are using MCAs for their working capital needs.
1. MCAs are very accessible
Merchant cash advances (MCAs) do not require in-depth credit checks or arbitrary loan board decisions. MCAs can be arranged quickly so businesses can get the financing they need.
2. Working capital without debt
Unlike traditional loans, MCAs do not place debt on the books. This means businesses can preserve their credit ratings when they get approved.
3. Flexible repayment
Businesses are used to loans and the monthly installments to repay the balance. Unfortunately, those monthly payments can place a big strain on finances, especially when revenue cycles are uneven. By contrast, merchant cash advances offer much more flexibility. Instead of rigid monthly installments, MCAs are repaid from a small percentage of credit card receipts. Businesses can repay the balance without placing a strain on finances.
4. Reusable and versatile financing
Traditional loans are typically single-purpose and single use. Funds are designated for a specific purpose and once the loans are used, businesses have to go through the process all over again to get additional capital. MCAs offer financing per business location, and if companies need additional financing, another merchant cash advance can be structured quickly and efficiently.
MCAs also provide discretionary capital. While traditional loans have a single purpose, the capital from a merchant cash advance can be used for anything a business needs, such as purchasing inventory, marketing, hiring staff, paying down existing obligations, and more.
5. Available to almost every business
Any business that accepts credit card payment at the point of sale can apply for a merchant cash advance. Retailers, distributors, service companies, and businesses across all industries use MCAs as a flexible and versatile alternative to traditional debt-based loans.
Web Finance Direct provides MCAs to businesses nationwide. If your business needs an infusion of working capital without the red tape and restrictions of traditional loans, contact our offices today.