As a business owner, you have likely come up with countless ways to grow your company. Have you considered renovating your business? Do you wish to expand? Are you interested in introducing a new product line? Do you have an amazing advertising campaign in mind?
Here are some other important questions for us to ask. Has it been difficult affording these plans? Have you been turned down by your bank when applying for a business loan? If you have answered “yes” to any of the above questions, we’d like you to consider an alternative source of funding. Why not apply for a merchant cash advance?
Here are three reasons to opt for a merchant cash advance over a business loan:
1. You don’t need any collateral.
When you apply for a business loan, a bank will request some collateral. Do you have a property that you would be willing to put on the line in the event you default on the loan? A bank needs reassurance that it won’t lose out on the deal. With a merchant cash advance, however, no collateral is necessary! That’s because it’s not a loan. It’s simply an advance on your future credit and debit sales. It’s paid back through those sales so you will never be in default!
“Lenders aren’t willing to risk default on the money they let your business borrow without a promise of reimbursement,” explains Factor Finders, “Organize a collateral document that lists everything you can offer as collateral, including both business and personal assets. Price depreciation can also affect your collateral.”
2. Your credit history doesn’t come into play.
One of the first things a bank’s loan officer is going to do is check into your credit history. If you expect to be approved for a loan, a credit check is inevitable. Naturally, a bank needs to know that you’re trustworthy enough to pay back your loan. But, with a merchant cash advance, a credit check is unnecessary. You pay back the advance automatically through your credit and debit transactions. No matter how much or little you process, you’ll never be late with a payment!
“Virtually all lenders will consider your personal and/or business credit score when you apply for a business loan,” reports Liquidus Funding, “Banks examine these even more closely than would alternative lenders that typically have less stringent requirements.”
3. You don’t require a business plan.
When you borrow a bank’s money, it needs to know what you plan on doing with it. With a merchant cash advance, however, it’s your money. It is not borrowed. As a result, you can do with it what you please! A business owner who puts together a poor business plan – or doesn’t have one at all – won’t be approved by a bank. When it comes to applying for a merchant cash advance, a business plan isn’t even necessary.
“No bank will want to take a risk on a company that hasn’t planned out or thought through its approach or strategy,” says Factor Finders, “Business plans that aren’t specific and are poorly researched are not likely to be approved. This is easy to resolve, as undergoing more extensive research and planning better business strategies can turn your business into a better risk and give your company credibility as to what they will use the loan for.”
Contact Synergy Merchants’ to learn all about our unique merchant cash advance program. Call 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!