One of the biggest mistakes people who use our services make is thinking of business cash advance lenders like a traditional bank. While it is true that traditional banks lend small businesses money, the way MCA lenders operate could not be more different. It is best to think of alternative lending as a business partner who is investing in your business to help it grow. This might sound counter intuitive because we have been all programmed to think of the big traditional banks as the “safe bet” and the only lending institutions with “legitimacy.”
Nothing could be further from the truth!
Maybe 25 years ago this was true or 50 years ago, but the days of the friendly banker that knew your business personally and might have been your kids football coach are over. Mostly because those bankers are now extremely limited in their ability to approve ANYTHING. They know that unless you have 800+ credit score and phenomenal business records with many years banking with them, you are what they call in the business an “auto-decline.” Regardless, they have you fill out the paper work and go through the hard work to put together all the documents they ask for and all you get is a big fat NO at the end of it. With a business cash advance, you know you will qualify for 75 – 100% of your gross revenue proven by your previous 3 months of business bank statements. Not only that, you get a decision within hours and the funding in your account just as quickly. Sounds more like an INVESTOR in your business than a bank right? They want you to have the money fast so you can increase your revenue with it asap.
Before they lend to you, a GOOD business cash advance company will understand your business and what you plan to do with the money, so that they are invested in your success. Unlike a private investor, they won’t require a percentage of ownership, just a non-amortized manageable for the advance that is always structured with your company’s financial health in mind. At the end of the day, your financial success and the merchant cash advance lender go hand in hand. It is because of this that I recommend alternative business financing my consulting clients. The lending model is perfect for small businesses who are doing well but need a cash infusion to get to the next level. I hope you got something out of my article, it’s my pleasure to write them!