At one time, your company was in a situation where money was needed. For small and medium businesses, prepaid in the company will help you meet your needs.
A bank loan may be an option for you in the beginning, but if you are refused, you will find how desperate to get money for a business that is still developing. You can check various online sites to get more information about business cash advance loans.
In fact, getting a Merchant Prepayment (MCA) can give you more benefits than a traditional bank loan. There are two reasons why small business owners should get an MCA for a bank loan.
Reason 1 – Faster funding
Bank loans can take months to get money. In addition, it is very unlikely that the loan will be approved, not to mention all the required documents.
However, with a prepaid loan, the waiting process takes less than a week. If your application is approved, the money will be transferred to your credit card within 48 hours.
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This is one of the reasons why you prefer a down payment rather than a bank loan. MCA providers understand business when urgent resources are needed. Fast funding is also needed. That's why they don't make you wait too long before giving you money.
Reason 2 – payment process is risk-free
The MCA payment procedure is done through credit card processing. The amount is based on your daily credit card sales. The supplier pays an agreed percentage of your company's sales each month until the down payment is paid.
Unlike banks, no collateral, interest, and personal guarantees are needed. MCA providers will not take legal action against your company if the payment process takes too long.
The payment amount is very flexible and does not guarantee a risk for you. This type of corporate finance applies to every type of business. Regardless of whether you have a restaurant, dental clinic, clothing store, hardware store, or small and medium-sized company, you can use advance payment from the dealer.
In addition, you don't have to have a good credit rating to use a deposit. Your homeowner's one-year lease guarantee and the submission of all your credit card transaction records are just two simple requirements needed to receive an advance for credit card sales.