Merchant Cash Advances Vs. Business Loans – The Better Option
If you are a business owner and your business is in a phase where it is losing money and you need money immediately to keep your business afloat, a loan may be the answer to your problems.
There are two types of loans that small scale businesses can get. They vary from each other on certain parameters. If you know the difference between the two types, then you probably know what’s best for your business.
The types of business loans are:
1. Merchant cash advances
2. Business loans
Just like bank loans, merchant cash advances provide a lump sum of money when you need business capital. Some differences between merchant cash advance programs and business loans are listed below.
1. Less paperwork – The process of getting a merchant cash advance is quick and easy compared to bank loans for because it involves less paperwork. You get cash in less than a week.
2. Higher approval rate – Most business startups that don’t qualify for traditional bank loans can get approved for merchant cash advance programs.
Merchant Cash Advance Programs
3. No collateral – Unlike in business loans, you do not need to put up assets like your home for collateral for a merchant cash advance.
4. Flexibility – You can use money provided to you by merchant cash advance programs any way you want. That’s not the case with business loans.
5. No fixed payback schedule – With merchant cash advance programs, you repay the cash advance according to your sales. If the business is down, your repayment slows. When you get a business loan, you have to repay it in a specific period of time regardless of how your business is going.
These are the major differences between a merchant cash advance and a business loan. If you want advice on how to go about getting one of these advances, give us a call today.
Tips to Get Small Business Loans with Bad Credit
A common myth is that you can’t obtain small business loans with bad credit. That’s simply not true. The Small Business Administration (SBA) directly addresses the problem of bad credit on their website due to the severity of the problem.
Bad credit is a plaguing factor for many small business owners who find it difficult to obtain traditional bank loans compared to large business owners because of a financial crisis that occurred a few years back. There are many tips on how to get small business loans with bad credit.
Small Business Loans
In today’s world, there are alternative funding programs and solutions for small business owners to obtain a small loan or credit. The basis of this depends on various factors other than your business’ credit score.
The usefulness of unsecured finances provides one with all available options for small business loans. Bad credit does not necessarily imply any credit for all kinds of small businesses. The money you get from a loan can be used for almost anything. Examples of expenses unsecured loans can be used for include business credit cards, accounts receivable financing and a seasonal business line of credit. Such alternative financing systems prove that there is so much more to your very own business than your credit score.
Do you need to get small loans right away? You can get funded with small loans and credit on the same day itself, provided the process is initiated early in the morning. Many same day approval merchant loans are processed on the East Coast with a few scattered across the country. For instance, if you need a same day approval merchant loan from a company on the West Coast, you cannot delay your process until 9 am Pacific Standard Time, the process has to be initiated early based on Eastern Standard Time for funding merchant loans. These very same day merchant loans are provided by considering other factors than a business’ credit score, like how long your business has been around and the amount of revenue generated. You need to keep your documents together to get a same day approval merchant loan.
Same Day Approval Merchant Loans
There is also the option of next day funding merchant loans, where you can get loans the very next day after your make a request to these alternative financing companies. Next day funding merchant loans make it easier for business owners to carry out their businesses efficiently and with the required material resources.
These alternative funding companies are generally trustworthy. They guarantee you the amount of the loan required to be available within 24 hours when it’s a same day approval merchant loan or within a maximum of 35 to 40 hours with next day funding merchant loans.
Taking on small business loans with bad credit is not an issue at all! Let us help you flourish! We can help you get same day approval merchant loans or next day funding merchant loans.