When you need working capital in New York, NY , for your business, a traditional small business loan may not be the answer. Merchant cash advance funding, or MCA funding, could be a better solution for you. Should you consider using MCA funding to meet your needs for capital for your business? Here is a look at some of the benefits.
Get Working Capital Faster
When you need capital for your business, you need it fast, not weeks in the future while you wait for a lender to process your application. With a merchant cash advance, you can get the money you need from a syndication investment group much faster than you can from a traditional small business loan provider. You won’t need to put your business on the line or risk losing clients while you wait for the money you need to come in and help you meet your operational costs.
Forgo the Bank Qualification System
Small business loans can involve extensive credit and background checks and may require collateral before you can close on the offer. With MCA lending, you can avoid most of the traditional qualification process, since your loan is made against future transactions. The lenders simply get a percentage of all of your receipts until the loan amount is repaid, so there is no need to comb through your financial history and that of your business while you wait for working capital that you need to keep your company moving forward.
Simplify the Repayment Process
With a traditional business loan, you need to make monthly payments on a set schedule that involves actively scheduling transaction. With a MCA, a portion of your sales goes directly to the lenders until your loan obligation is satisfied. You don’t have to worry about forgetting a due date, and you don’t have to worry that you won’t have the money to make a payment, since the payments are based on sales you actually make. This makes repayment less complicated and much easier to manage in your budget.