Why Doesn’t Everyone Use a Merchant Cash Advance Instead of a Business Loan
Merchant cash advances have been around for a number of years now and still the vast majority of business owners that are seeking working capital are still going through the banks to get it. They do this even though nearly 90% of them are not going to get funded. Why do they do this?
Banks are trusted
Many banks have been around for decades and have spent millions of dollars advertising their trustworthiness. So it comes as no surprise that we continue to go back to the banks for our funding needs, even though we know that we have a dwindling chance of getting approved for any kind of a loan.
Banks have the lowest interest rates
This is true. Banks do have merchant cash advances beat when it comes to costs. But let’s be honest here; the reason a bank loan costs less is because they will only lend to people that they consider a low risk. The way things are looking nowadays, hardly anyone is considered a low risk any more.
The fact of the matter is if you can get a bank loan, this may be your better choice if cost is your primary concern. However, if you need money in a hurry; a cash advance may be the better option.
A business cash advance has a much higher approval rate
If you’ve ever had had credit issues in the past, or if you are in the type of business that a bank might consider to be high risk; getting a bank loan can be extremely difficult.
A when considering a funding request; a cash advance provider puts a lot more emphasis on your business’s earning potential rather than on your credit history. If your business has a consistent cash-flow and accepts credit cards as a form of payment; then chances are pretty good that you will get funded.
If you would like to learn more about the cost; use the form on the right to get a free quote or to see if you qualify for a merchant cash advance.
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