5 Reasons To Get A Merchant Cash Advance That Have Nothing To Do With Credit
Merchant cash advances were once stigmatized with terrible names. They were called “legalized loan sharking” and assumed to be the decision of people who were unable to qualify for a bank loan due to bad finance decisions. However, as years pass, people begin to realize the true value of good opportunities. These include merchant cash advances. With stigma lessened, people who want to get business funding are opting for cash advances, even if they have good credit. Here are five reasons why it's happening...
Reason #1: Speed is an issue.
Business moves at a breakneck pace. This is excellent for people who love the quick way that businesses can evolve. Unfortunately, traditional loans don't move at such a quick pace. In fact, they tend to move at a crawl. In order to keep up with business needs, you need fast cash options. For many borrowers, merchant cash advances are such an option.
Reason #2: It's just less red tape.
If anyone appreciates a good amount of convenience, it's business owners who are constantly on the go. They don't have time to dig out all the little papers they have to prove their successful. As a result, the quick convenience of a cash advance offers speedy funding without too much of a hassle. It's obvious why this is a good thing for business owners.
Reason #3: Banks aren't always friendly to some industries.
Banks are infamous for being discriminating...and we're not just talking about with credit scores. If a bank doesn't like your client base or your product, they won't lend. Meanwhile, cash advances are a lot more open to different industries and borrowers. Alternative lending is getting increasingly popular for this reason alone.
Reason #4: Sometimes, the amount you borrow is a big factor.
If you need to borrow less than a bank loan's minimum, we have bad news for you. Banks will assume you to borrow their minimum and saddle you with extra debt. It's not fair, and some entrepreneurs are just saying that enough is enough. Ergo, cash advances are a better option.
Reason #5: You get to control your cash.
A little known fact is that most bank loans don't just mean “free cash.” Rather, banks have the right to control what you spend your money on. Since cash advances aren't technically a loan, alt lenders don't have that right. You are the one who gets to decide what your company does and doesn't need. With a bank loan, spending it on unapproved things can cause you to get into serious trouble. Why take a loan if you can't control what you use it for?
Obviously, getting a cash advance is a great idea in many situations – even if you have what it takes to qualify for a bank loan. If you want to get more information, give Red Payments a call.