Today, many small business owners are considering merchant cash advances (MCAs). Surprisingly, many people don’t know about the benefits of MCAs. In order to increase awareness, the following article includes key information. Although MCAs come with flexible repayment terms, they have a few defining traits (Source: Federal Reserve).
High Likelihood of Approvals
MCAs offer fast and convenient access to funding. As a result, business owners are more likely to receive funding.
For example, the vast majority of applicants who applied received funding from MCAs (Source: Federal Reserve Bank of Cleveland). Businesses are very likely to not only get approved but also get the sum they need.
Spending Freedom with MCAs
In general, MCAs do not have spending limits. As a result, business owners can put funds toward decisions that are most profitable.
Additionally, business owners do not need to report what the money is spent on (Source: Journal of Business & Intellectual Property Law). Subsequently, they save time and can focus on their business.
Quick Access to Funding
MCAs not only operate online but also do not require lengthy paperwork. As a result, the loan approval process is fast. (Source: House of Representatives). Additionally, they provide instant approval.
MCA Present-Day Trends
A growing number of small business owners are using online lending options (Source: Federal Reserve Bank of Cleveland). Even after the pandemic, this number is expected to grow.
In summary, MCAs offer key benefits to business owners, including:
- Greater approval odds and withdrawal amounts despite credit scores
- Un-matched spending freedom without required reports
- Quick access to funds as a result of online processes
Although there are additional benefits, these are the most noteworthy for small businesses.
Now that MCAs are growing in popularity, many small business owners have questions. To this end, please feel free to reach out using our contact page. Our experienced support team can help.
Thank you for reading, and we wish you the best of luck throughout the pandemic.