MCA or Traditional Business Funding.
Comparing Merchant Cash Advances to Traditional Business Lending
MCA or Merchant Cash Advance are gradually becoming more mainstream as several small and medium businesses that are not being able to secure a bank loan are turning to alternative funding sources. This is because; a merchant cash advance can be availed by a business quickly and that too with minimal paperworks. Hence, as banks continue to be very tight with their loans; merchant cash advance is becoming extremely appealing to small business owners over time.
How MCA works?
To illustrate in layman’s terms, Merchant Cash Advance, or an MCA provides purchases a pre-defined amount of a business’s future credit card receivables in one lump sum in return for the receivables, which is paid back to the lending organization over a certain period of time, which is usually calculated as a daily percentage of the customer’s debit/credit card totals. This is the key benefit that distinguishes MCA from conventional loans.
In other words, Merchant Cash Advance is not loaning a business any money, rather it is a simple process of buying a portion of the customer’s future business revenue.
Advantages of MCA Borrowings Over Bank Loans
The primary advantage of MCA over bank loans is that Merchant Cash Advance, in general, does not require any collateral, and liens (although this is always subjected to certain conditions). Apart from this, the other ranges of benefits that small businesses receive from choosing this kind of funding are:
No rigid monthly payments
No upfront fees
No UCC-1 (Uniform Commercial Code-1) at the time of funding
No collaterals (subjected to certain conditions)
No limits on how you spend the fund
Minimal approval time for disbursement of the fund
Therefore, the greatest advantage of MCA is that the amount, which the business pays, is based on the sum total of the credit card transactions that the borrower receives every day. As there are no set fees that must be paid every month, so small businesses taking merchant cash advance still have an access to a greater portion of their own revenues. This implies, if your sale drops for a specific month, your MCA payment will also become low to reflect that change.
Why use a Merchant Cash Advance CRM?
While all CRM may work for any business, Merchant Cash Advance CRM is specially designed for MCA businesses, as it not only helps in easy collaboration with the funders but it also helps MCA business in the following ways, which include:
Find a central repository for merchant contact information, related documents and underwriting information
Escalate the power of communication by integrated with DocuSign, Email, and Fax application templates for merchants and funders
Track deals from underwriting to funded stages
Syndicate and track approval numbers, management fees and commissions
Increase agent’s productivity by using quick lead capture form, easy edits, 360-degree merchant profile view and one-click deal conversion
Multiple fund submission and tracking
Takeaway
Therefore as a small business owner, if you find that you have the opportunity of expanding your business, but you do not have the time for traditional funding to come through, it is the perfect time to consider Merchant Cash Advance to get the finance you need, especially just when you need them.
Original Blog Post here:
https://www.convergehub.com/blog/use-merchant-cash-advance-crm-mca-business
The Key Benefits of Using a Merchant Cash Advance
It all begins with an idea.
The Benefits of Utilizing a Merchant Cash Advance (MCA) for Small to Medium-Sized Businesses
When it comes to financing for small and medium-sized businesses (SMBs), traditional loans can be difficult to obtain, often requiring perfect credit scores and long application processes. Thankfully, Merchant Cash Advances (MCAs) offer an alternative, providing quick and easy access to working capital when businesses need it most. In this blog post, we’ll explore the key benefits of utilizing an MCA and why www.jhbusinessfunding.com should be your number one choice for securing an MCA.
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a type of funding where a lender provides a lump sum payment to a business in exchange for a portion of its future credit card sales or daily bank deposits. Instead of adhering to the strict approval criteria required by traditional loans, MCA lenders focus on the volume of sales your business generates, making this an attractive option for many SMBs.
The Key Benefits of Using a Merchant Cash Advance
1. Fast Access to Capital
One of the biggest advantages of an MCA is the speed at which you can receive funds. With traditional bank loans, businesses can be stuck waiting weeks or even months for approval. In contrast, businesses using www.jhbusinessfunding.com can secure up to $1 million in just 24 to 48 hours. This is especially beneficial for businesses facing an urgent need for cash, whether it’s to cover unexpected expenses, stock inventory, or take advantage of a growth opportunity.
2. No Need for Perfect Credit
Unlike traditional lenders, who often require excellent credit histories and detailed financial statements, an MCA is based on your business’s daily credit card sales or bank deposits. This means that businesses with less-than-perfect credit scores still have a chance of securing funding. If you have a steady stream of sales, you may be able to obtain the capital you need without worrying about your credit history.
3. Flexible Repayment Terms
Repayment for an MCA is typically based on a percentage of your daily sales, which means that your payments will fluctuate based on your business’s revenue. During slower months, your payments will be lower, and during busier months, you’ll pay more. This offers flexibility, allowing businesses to manage their cash flow more effectively compared to a fixed-term loan with rigid payment schedules.
4. No Collateral Required
Unlike traditional loans that may require assets like property or equipment as collateral, an MCA doesn’t require any business assets as security. This reduces the risk for business owners, especially those who may not have significant collateral to offer. Instead, the lender relies on the business’s sales history, which means that your day-to-day operations remain unaffected.
5. Simple and Quick Application Process
The application process for an MCA is straightforward and typically requires minimal paperwork. Most MCA providers, like www.jhbusinessfunding.com, only need information about your business’s sales, bank statements, and sometimes your industry type to approve you. There’s no need to worry about complex application forms or waiting for days to hear back from a bank.
6. Helps with Business Growth
Whether you want to expand your business, launch a new product, or handle seasonal inventory needs, an MCA provides the funds needed to fuel growth. Because the approval process is faster and simpler than traditional funding methods, businesses can act quickly on opportunities that may otherwise be missed.
Why Choose www.jhbusinessfunding.com for Your MCA Needs?
At www.jhbusinessfunding.com, we specialize in providing quick and reliable Merchant Cash Advances that are tailored to your business’s needs. We understand that every business is unique, which is why we offer personalized service with flexible funding options. Whether you need $10,000 or up to $1 million, we can provide the capital you need within 24 to 48 hours.
Our streamlined application process ensures that you spend less time on paperwork and more time focusing on growing your business. Plus, with our industry expertise and commitment to customer service, you can trust us to provide the best financing solution for your business.
Conclusion
Merchant Cash Advances are an excellent option for small and medium-sized businesses that need quick access to capital without the hassles of traditional loans. From fast funding to flexible repayment terms, MCAs offer several benefits that can help businesses meet their financial needs and grow. When looking for an MCA provider, look no further than www.jhbusinessfunding.com — your number one choice for reliable, fast, and convenient Merchant Cash Advances.
Let us help you unlock the potential of your business with the funding you deserve. Apply today and see how we can support your business’s growth!
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