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.

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