Here’s a fundamental truth of any organization: you need cash to help grow your business. Whether you’re a start-up, a sole proprietorship, or a limited liability corporation, getting a small business loan will be one of your top priorities. Unfortunately for many new and small businesses getting the cash needed to grow can be difficult and costly.
It used to be that the only way to gain access to cash were to go to banks which had their own difficult and long process, time you nor your business has. Luckily in this new economy other options for small business funding have popped up.
Personal Asset Lending allows you to use assets like cars, equipment, and jewelry to get working capital for your business. Loans against art and other valuables can also be used as collateral.
Most small businesses do not have extra assets or equipment just laying around. In cases like that a merchant cash advance can be a beneficial and flexible option to obtain working capital needed to grow.
A merchant cash advance, more commonly referred to as an MCA is simply a purchase of future credit card sales.
A typical bank loan requires fixed monthly payments and doesn’t take into account the fluctuation of seasonal sales. If things are slow a business can struggle to make the payments at detriment to the growth the loan was originally supposed to foster. A MCA is based on percentages of sales allowing leeway during a time when sales are low.
Merchant Cash Advances are also easier to come by than a bank loan. The application process is much shorter and a business can have their money in as little as twenty four hours.