Although a business loan from the bank has its advantages, they do not compare to the speed and simplicity of a merchant cash advance.
The advantages of a business loan from the bank
There is one very clear advantage to getting a loan from the bank; and that advantage is price. In business, price matters. It is the number one motivation behind selecting one product over another. Another motivating factor is brand recognition; banks have a clear advantage when it comes to brand recognition.
Another advantage that a bank loan has is the amount of time allowed to pay it back. Although not all business owners think of this as an advantage; spreading your payments over the course of a few years makes the monthly payment much less.
The advantages of a merchant cash advance
There are a number of advantages that a merchant cash advance has over a business loan;
It is much easier to get approved. Getting a business loan in today's economy is hard. Especially of you have bad credit or lack sufficient collateral. In fact, merchant loans have a 90% approval rate. Even businesses that have been turned down by the bank may still qualify for a cash advance.
Collateral is not required. These are often referred to as an unsecured loan precisely for that reason. Even if you don't own property or other assets; you still qualify. If you do own property; you don't have to worry about anybody taking it away from you because you were unable to pay back your debt.
You are funded in days; not weeks. Many business owners find themselves in a situation where they need money fast. That is the last thing a bank wants to hear. With a merchant cash advance in it not uncommon for you to get cash deposited into your account in 3 or 4 days.
The application process is fast and simple. The typical application is 2 pages and you are approved in about 24 hours. As a business owner, you have enough things to do than to labor over an intrusive application process.
Flexible payback structure. Because you use a percentage of your daily credit card sales to pay back your cash advance; you pay back less on slow days and more when things pick up. This flexible payment structure creates an organic cash-flow that works with the flow of your business and takes the strain off your business's finances.
There are no restrictions on how you spend your money. Many financial institutions want a clearly defined outline on how you will spend their money. A merchant cash advance has no such restrictions. You are free to spend the money as you see fit.
Whether you are currently looking for funding or not; it is a good idea to keep all of your options open. Use the following link to learn more about how a merchant cash advance can help your business.
About the Author:
Chris Ronk writes articles about business loans and merchant cash advances for http://www.easymerchantcashadvance.com
