Unsecured
business funding options for MOTO and telemarketing businesses- MCA
(Merchant Cash Advance)
Some
businesses find it easy to acquire loans from traditional lenders and
banks. But that is not always the case with small businesses and
startups as well as some businesses that are always considered as
high-risk bets. For all such situations, there is one type of funding
which works easily and that is merchant cash advance.
Telemarketing
businesses as well as MOTO or mail order telephone order businesses
and other similar ones come with a lot of inherent risks. These are
businesses that happen mostly without physical stores. Orders are
placed and most transactions occur online or through the phone.
Payments are also done via credit cards and sometimes there is a
card, not present cases that should be handled as well. Most funding
options do no cover all these conditions. So in such cases, a
merchant cash advance would be very convenient.
Online
transactions, in general, are convenient for both the customers and
the businesses involved. But there is the issue of the chance of
refund initiation before the order completion. So this would result
in a chargeback which would have to be taken care of by the merchant
account provider. This is one main reason why the merchant account
for high-risk businesses is different from conventional merchant
accounts. Whether the bank refuses the loan requisition at times of
need or whether the bank backs out in the middle it would, in the
end, be a big problem for the telemarketing or the MOTO business. So
cash advance from a high-risk merchant account provider would be a
reliable option in all such cases.
A
go-to options for merchants with bad credit
When
most of the payments are done online and when the chances of
chargebacks are high it is tough to maintain a good credit at all
times. But a bank loan can be taken only if the business has a good
credit score. And the size of the loan would also depend on the
actual credit score. Further, the loan terms and the decision of
short term or long term would all depend on the facilities offered by
the bank.
But
in the case of merchant cash advance, you would be able to get the
funds even if your business has a bad credit score. The bad credit OK
merchants are specialists in handling such cases and would thus have
no trouble in accepting fund requests from such businesses. So even
if you have chosen standard small business financing options
initially it would be a good idea to know about BCA (Business Cash
Advance) and MCA well in advance. So when the need arises you would
be able to go to the merchant cash advance lender and get your
expenses covered with ease.
Why
do you need extra funds?
A
single business loan would often not be sufficient to get your
business running successfully. Telemarketing businesses, as well as
MOTO businesses, have the need to strive and retain their position in
the growing competition. This means that you would have to keep
upgrading the existing systems. The existing teams might need
training sessions to be educated about the latest trends in
technology, there are hikes and incentives as part of the payroll as
well as the need for increasing the team size when required. All such
situations, as well as the process of expanding the business or
taking it global, would all need funds.
If
the standard loans cannot cover all of these then merchant cash
advance is your best bet. These are granted without any questions
asked. So unlike traditional loans, you would be able to get cash
advances bank loan alternatives that can be used for any purpose in
your business. Not all unsecured business loans and no collateral,
commercial loans are as simple as cash advances. The application
process itself involves very few steps and the approval rates are
high. So without too much documentation hassles, you would be able to
walk away with your cash advance in a short duration.
1st
position, 2nd
position and even the 4th
and 5th position would not be a problem anymore
Having
one loan itself is a big commitment. But having 2nd
position loans and higher positions would further complicate the
whole process. This is a situation that most small businesses find it
difficult to tackle. A high-risk merchant provider would be a
specialist in such cases of complicated funding. You would thus be
able to simplify the payments by combining all the positions to a
single repayment plan. This would help reduce the confusions and also
help plan your finances better. So make it a point to look for a
suitable merchant cash advance that can help you manage different
positions of the loan with ease.
Easy
financing packages
Look
for the financing increments that you would be able to avail from the
MCA (Merchant Cash Advance) provider. Revolving credit, credit card
factoring and various other alternatives are available to finance a
business’ sudden financial requirements. But merchant cash advances
do have the benefits that make them such a favorable option. One of
the most favorable aspects of a merchant cash advance is the
flexibility in loan amounts. Whether it is a small loan of say 10K
dollars that you need, perhaps to upgrade or purchase new equipment
for your office or whether it is a higher amount like 100K dollars or
more you would be able to obtain all the loan packages with the same
convenience. The processing time and the processing conditions would
remain the same. So no matter what the amount is that is chosen you
would still be able to effortlessly have your business backed up
while you shift your focus to more important things. There is no
collateral required even when you opt for a large loan amount and you
would still be able to choose a short or long term for the loan based
on your preferences. It is this flexibility that makes merchant cash
advances so attractive.
