Large banks are usually the first choice when a small business owner needs a loan. To get approved a business must present a strong financial picture in addition to a strong credit score and collateral, if the banks deems it necessary. Many small business owners and merchants may not meet the requirements for a bank loan but a merchant cash advance provides a better alternative. Here are three cases where a merchant cash advance is the best option.
1. FUNDS ARE NEEDED IMMEDIATELY
Unexpected costs will arise as a small business owner and if you need to replace equipment or pay a vendor, securing a loan from a bank may prolong the process. A merchant cash advance can supply funds in a few hours or days instead of a few weeks or months like a traditional bank.
2. COLLATERAL IS NOT AN OPTION
Large banks may require collateral to secure a loan but this may further damage a fragile financial scenario. A merchant cash advance will not require collateral and allows a business owner to continue operations with payment based on a percentage of sales.
3. IMPERFECT CREDIT
When a major bank reviews loan requests, a primary factor in approval is the business owner’s credit score. While a business may be successful and pay vendors and employees on time, their credit score may not meet the requirements for a bank loan. A merchant cash advance has less restrictive requirements and provide funds to business owners with less than perfect credit scores.
A merchant cash advance is often the best solution for small businesses and companies such as Timestar Lenders are ready to help.