Small business funding has always been a hot commodity in the field of finance. It has been a space that has traditionally been filled by banks. But that seems to be changing during the past couple of decades. If the small business owners are asked today if they would choose a non-banking alternative even with a slight advantage over the former, many of them will not say no.
This is because banks have not changed their policies of issuing loans in the past couple of decades while adapting with the rising innovation in the technology. While on the other hand, businesses have always been consistent in changing with the rapidly changing technology spheres. And so, it has become much harder for small business funding to be attained through banks today.
So, instead of going through the traditional route, more and more business owners have started to choose a better alternative which comes from the decentralized and superior method of exchanging commerce, known as the system of Merchant Cash Advance.
Read More: How to Get a Small Business Loan in 5 Steps
What is Merchant Cash Advance?
Merchant Cash Advance is the method of obtaining small business funding through a system that is independent of any centralized authoritative regime like that of banks. This is because it heavily relies on the funding power of separate independent lenders who can provide faster, easier, and much more transparent way of obtaining funding for small business owners. And all of this happens in a way that is completely hassle-free.
In terms of its working, merchant cash advance is fairly grounded, as the entire system works like an average business deal. The business owner approaches the independent lender after surveying through all the options present online and sends them a business proposal. The independent lender studies the proposal and then chooses to call the business owner for a meeting.
The business owner and the independent lender are then able to negotiate on the terms that they both agree with and sign the contract. The loan money is then transferred directly to the business owner’s account in a lump sum, and just in a couple of hours. In fact, the whole Merchant Cash Advance process is so fast-paced, that in its entirety, it can be completed in just twenty-four hours.
Yet, you might be wondering, if Merchant Cash Advance truly is the best option for small business funding?
How Merchant Cash Advance is the best method of business funding
Merchant Cash Advance is better than any other methods of obtaining business funding due to the following ways:
- It has a much faster process.
- There are no restrictions in its proceedings.
- No collateral is required.
- The repayment method is much easier and without any penalties.
- There is much more transparency in the MCA process.
- Your credit history is not a problem.
Due to the aforementioned reasons and much more, Merchant Cash Advance is a far superior method of attaining small business funding than banks or any other method.