The easiest and fastest way to access the best source of commercial truck financing these days is via merchant cash advance (MCA) small business loans. This type of financing is based on the current cash flow of your business. A business owner must have a reliable system of conducting their business using credit or debit card transactions that has a prerequisite of payback flexibility. This will allow the merchant cash advance company to provide the commercial truck financing they need to meet their business expenses. This is one of the effective systems of business financing alternatives that is based on the influence of the borrower’s credit or debit card receivables in the future.
The moment a business owner requires quick access to business financing to cater to an instant need for their business, they can talk to merchant cash advance lenders for an immediate financial solution. In this system, the business owner is required to put his credit card business account to act as security and get the funds. The merchant cash advance serves as an alternative to the extensive approval procedure and stringent credit conditions that are required when it comes to obtaining a traditional business loan.
Technically, a merchant cash advance is not a loan as the majority of people think. Instead, it is an upfront payment that is based on the future credit/debit card sales. Any business owner who operates a small business can secure a merchant cash advance and the money transferred into their account within a short period. Therefore, this is one of the simplest and most straightforward ways of obtaining commercial truck financing to meet the financial needs that a small business owner might encounter as they run their trucking business.
How does MCA WORK?
It is evident that merchant cash advance is a convenient and efficient way of securing a commercial truck financing for your logistic business that is based on your credit card receivables. The primary criteria for securing a merchant cash advance is to make sure your business has at least a predictable sales volume of your credit card sales.
However, different merchant cash advance lenders will provide slightly varying terms on the advance given, but it will depend on how stable your credit card sales volume is. Alternatively, this is a process where a merchant cash lender agrees to purchase a secure sum volume of business credit card receivables in the future at a discount.
With a reliable merchant lender, a business owner is entitled to get commercial truck financing of up to 150000 dollars. The lender will then deduct a percentage of the future credit card sales. This will happen until the lender has accumulated the total sum of the future sales in a credit card that they had purchased.
While to obtaining a commercial truck financing, the majority of people try to conjure up with a big financial institution and trying to obtain relatively a significant amount of cash. However, this is more convenient for big companies but a bit more difficult for small business. For the business owners who can’t get approved by a traditional bank, there is another excellent alternative for business financing in the form of merchant cash advance (MCA). Various advantages are associated with this form of financing.
Benefits of taking a commercial truck financing from a merchant cash advance( MCA)
No Risk to Collateral or Credit
One must have strong collateral or some physical that can be fortified if the borrower fails to meet his repayment requirements. In most cases, the traditional lender will rely on the good credit rating of the borrower. For this reason, defaulting on a business loan can have severe ramifications for the business owner’s financial future.
However, a merchant cash advance (MCA) is pondered as a sales transaction whereby the lender will never ask for your credit report. Therefore, you can visit a merchant cash advance lender and secure your commercial truck financing to fund your logistics business. With an MCA, you have a guarantee that you are not risking any of your financial future.
Fast and simple application process
Note that a business loan from any financial institution will require a deluge of documentation, nut a merchant cash advance is a quick and convenient procedure. It is not only faster than securing a bank loan, but it is also less stressful. Your merchant cash advance lender will only look at the overview of the cash flow of your business to make sure that there is a realistic prospect of the advance amount to be paid back. Bear in mind that the exact requirement will vary between different merchant lenders.
You get the cash fast
Since there is no documentation required, you will get your financing from your nearest merchant cash advance lender faster than you would get from a traditional bank. This makes the merchant cash advance the best commercial truck financing alternative for small business. It is evident that small business tends to be more vulnerable unanticipated cash flow problems. Therefore, a merchant cash advance will give you adequate wriggle room to overcome all the temporary cash flow issues.
Obtaining a business loan requires a long underwriting procedure that might take weeks or even months on some occasions. On the other hand, a merchant cash advance is usually available with a few weeks after you submit your application.
Repaying your advance loan is easier
In most cases, the merchant cash advance will not be paid back until your business starts making some income. On top of that, the amount to paid back at every interval is proportional to your income. Note that this is different from a bank loan where you are required to make your monthly payment on time and in full amount. Even though the merchant cash advance lender will deduct the debt on a monthly basis, they take into account the amount of credit card sales that your business has made instead of demanding a fixed amount.
High rate of approval
It is evident that when you apply for your commercial truck financing at a merchant cash advance lender, you will be approved faster. This is because the merchant cash application is evaluated depending on how your business is performing and not your credit rating nor your financial history as an individual.
This implies that you will easily get approved for a merchant cash advance if your business is in good health and it performs well in the industry. For that reason, an MCA is one of the most flexible financing alternatives that can give your logistic business a lifeline when you are unable to get approval from other sources. Considering how tempestuous the commercial lending industry has been in the recent times, the merchant cash advance (MCA) has played a vital role in the growth of small business.
An alternative for every business
The good thing about the MCA is that they are suitable for all kinds of business comprising sole traders and partnership. As your logistics business is expanding in size and grows its client base, the demand for its working capital will as well go up in proportion to the expansion rate. For this reason, the merchant cash advance is a perfect means for small business to obtain cash influx that they require to expand and increase their income.
In a quest to keep up with the latest technology innovation that has eased the undertaking business deals, the majority of merchant cash advance lenders have interactive and user-friendly websites. On top of that, these lenders cover a large market area in the country when it comes to providing online commercial truck financing. It has a simple application process, and the businessman is entitled to get the business funding within a short period. The websites help them to connect with various independent sales organizations in vast areas because deals can be closed with just a click of the button.
Merchant cash advance lenders never struggle to offer the best services to small business who are searching for financing to solve their financial problems.
The lending industry is experiencing some transformations and borrowers are getting lenders with a higher rate of approval via simple loan application process and requirements. Currently, the majority of small business owners prefer alternative lending options to solve their financial obligations. On top of that, the online direct lenders are ready to offer the commercial truck financing to any small business owner who is in need. The merchant lenders have decided to incorporate the services of independent sales organizations to ensure they efficiently serve their clients. The majority of merchant lenders are satisfied with the role of independent sales organizations, and they are searching for efficient and reputable sales agents.