Selling merchant cash advance loans to your business leads is a daunting task. Getting a large volume of Merchant cash advance leads is okay, but to turn these leads into a success requires a great strategy. It’s mostly about a good pitch! At times, poor strategies also take away your potential prospects. A brilliant marketing strategy is the reason businesses grow! A clear strategy defines your vision, goals, and what you want to achieve from your business loan leads and helps you market them accordingly.
Category: ACH Marketing
SBA or MCA – Which is the Better Funding Option for Small Businesses?
While gigantic companies and multinational corporations seek credit for special operations, small businesses, the ones who have just entered the corporate world, are short of finances and need capital to fund their day-to-day operations. In the starting phase of a business, there are so many things that are needed, such as inventory, hiring staff, technology, etc. Entrepreneurs know how difficult it is to manage the expenses and operate a business with low funds. Also, they need cash to make payroll, pay taxes, or avoid defaulting on existing debt obligations.
Every company, whether it is in construction or is a clothing merchant, in its starting phase needs financial support to grow and maintain their business. Usually, the companies seek funds from loan providers to meet their business operations. The flexibility granted by a loan or cash advance can mean the difference between thriving in a tough economy and joining the half of small businesses that fail during the first five years.
For this reason, business owners really need to know what would be the best funding option for them. The two major funding options for small businesses are SBA loans and Merchant Cash Advances or MCAs. SBA loans are loans to small businesses who are unable to get a business loan through normal lending channels, with reasonable terms. The program operates through private-sector lenders that provide business loans which are guaranteed by the SBA or the Small Business Administration. A merchant cash advance is a quick and easy business funding option without the need for collateral. The MCA loans require no formalities, no credit checks, and are provided by private lenders. There is no involvement from any bank or other traditional loan providers.
SBA vs. MCA – Picking the Better Option
Still, many people are confused on which is the better option. Let’s make a comparison between the two and see which will work best for you.
Based on financing amounts, SBA loans offer numerous benefits. For organizations that need a few million dollars quickly, an SBA can be their best option. The approval time is around one week, and disbursement takes up to six weeks. The organization’s lending standards favor manufacturers with equipment and property as collateral. Now, merchant cash advances can start from $10,000 and can go up to $51 million. With merchant cash advances, business owners can access funds within a week and even within 72 hours in certain cases.
The next important comparison criterion is what the minimum qualification to apply for a loan is. When applying for an SBA loan, the applicant must meet a lengthy list of terms and conditions and even additional ones that have been set by the originating bank. For instance, an applicant,
- Must base for-profit operations in the US
- Cannot request government help before using up personal assets
- Cannot be involved in certain financial, political, or religious activities
- Cannot be delinquent on taxes or any other debts to the federal government
However, merchant cash advances do not require collateral or a personal guarantee. In most cases, even if the entrepreneur has a bad credit report or past bankruptcies, then they may still qualify for merchant funding. There are no major requirements for qualifying for merchant cash advances.
- Few months operating history, which is sometimes optional
- Monthly gross credit card sales, the amount generally depends on your loan provider
- Documented gross monthly sales
- No formalities and no credit checks
See Also: Count the Benefits that Your MCA Leads Can Get from a Merchant Cash Advance Loan.
Merchant cash advances offer easy applications, fast processing, and repayments are even easier. The merchant funding companies recoup their funds by collecting a certain percentage of total credit card sales. So, we can say that merchant cash advance loans can be a little expensive as compared to traditional bank funding, but they are more flexible and forgiving with easy processing and even simpler repayments.
Count the Benefits that Your MCA Leads Can Get from a Merchant Cash Advance Loan.
Taking a business loan from a traditional bank involves tons of complexities. It’s just not easy! Poor credit history or no credit history makes it very difficult to get approved. But, that’s how traditional banks operate. So, why go the complex route when there is a much simpler way to get your business financed?
Merchant Cash Advance Loans are the quicker and easier way to get the funding you need!
So, whatever business goals you have—adding more stock to your inventory or hiring new staff, paying salary to your staff or buying a new piece of equipment—a Merchant Cash Advance is the right fund provider for your business. And on the top of that, the entire process of getting the loan is very easy! You don’t need to struggle with any drawn out application process or have to face any unnecessary delays. There are multiple benefits that your MCA leads can avail from a merchant cash advance loan.
Understand Merchant cash advance loans first
In simple terms, merchant cash advance loans are lump sum cash provided to your MCA leads against the future sales of their business. This is the only principle on which merchant cash advance loans operate. You need to commit a percentage of your future sales to the MCA lender. You can borrow this advance based on your current sales deposits, and then you’re absolutely free to invest the money the way you want for your business. And your MCA leads can avail this type of advance instantly and more conveniently than any other funding option.
So, sit back and count the benefits. There’s a lot that merchant cash advances promise.
Easy documentation
There is no arduous paperwork involved with a merchant cash advance loan. MCA providers operate on very simple criteria. Monthly credit card returns and the length of time in business. Say, the minimum credit required is $5000 and the time in business is nine months. Your MCA leads just need to process two months of bank statements, a copy of a mortgage or lease statement, and identification proof to streamline the whole application process.
Speedy approval
The approval process depends on how your business is performing in the market presently. There is nothing to evaluate from credit reports. The basic need is the stability of your business and the monthly income of the past few months. That’s why the approval rate of a merchant cash advance loan is really high as compared to other commercial loans.
SEE ALSO: Targeting the Right Market: The Key to Optimal Revenue in the MCA Business Loan Industry
Instant access to cash
The fast approval of your business loan application gives you instant access to the cash for your business needs. Normally, it just takes a week’s time to get the cash in hand. So, the entire process consumes less time and lets your MCA leads plan their business ahead.
Easy and relaxed repayments
When it comes to repayment, the amount varies because it depends on the monthly sales volume your MCA leads generate. In simple terms, higher sales mean higher deposits and lower sales mean lower deposits, which is quite different from a fixed monthly installment when it comes to commercial loans.
Thinking of an ACH Marketing Campaign? Know Why ACH Holds the Future of Payments
According to a 2015 Perceptions Study: Research and analysis of supplier activity in the areas of invoicing, payment and remittance, and credit collections, it was found that 83% of the respondents receive payments from their customers by paper checks, while 73% receive them through ACH (Automated Clearing House), and 52% receive them through credit cards. When the respondents further questioned them as to which method they would prefer for making payments the most, 63% of them chose ACH, 25% preferred paper checks, and 9% decided to go with credit card payments. The study certainly makes us feel that there’s huge potential for ACH to be the dominant payment gateway in the near future.
Continue reading Thinking of an ACH Marketing Campaign? Know Why ACH Holds the Future of Payments
Not Sure How You Can Sell MCA Loans With a UCC Leads List? Know How Direct Mailing Can Help You Out
As you focus on targeting UCC leads in order to sell your merchant cash advance loan, you’re faced with many challenges, especially when you know you don’t have access to the addresses of potential leads. You’re in a dilemma over how to market and advertise your merchant cash advance loan to people who might be genuinely interested in getting one.
In case you’ve just made up your mind for direct marketing, you’re still on the right track, provided you know the benefits associated with direct marketing. Here’s a refresher to some of the benefits that have kept marketers motivated time and again:
Have You Been Refraining from Direct Mail ACH Marketing? Well, You Might Want to Reconsider It!
Most people know that an ACH Advance, also known as a Revenue Advance, is a merchant cash advance transaction that is repaid via direct daily ACH bank debits and not from a merchant’s bank account. And as ACH leads are those that use ACH funding, marketers use ACH leads lists to target businesses who are genuinely interested in getting a loan. But, as merchant cash advance lenders, you often face the dilemma of deciding which approach to go with for your ACH marketing.
Planning a MCA Marketing Campaign? Sell the Benefits When You Sell the Loan
You know that when you have to embark on a MCA marketing campaign, you need to have your strategies, road map, resources, and time and money all planned out. You have probably tried it before and have had different experiences every time in the past. Now, let’s assume you already have a highly targeted list of MCA leads, but do you know how you can make the most out of the opportunity? Well, all you have to do is educate your prospects on the benefits of merchant cash advance loans when you approach them via email or phone. Make sure your sales personnel is well informed about the industry and that they can answer all possible questions posed by your MCA leads.
Continue reading Planning a MCA Marketing Campaign? Sell the Benefits When You Sell the Loan
Need a Boost in Your MCA Business? Get an ACH Leads List
We all know that ACH (Automated Clearing House) is the electronic funds transfer network that processes debit and credit transactions in batches. It is widely used by businesses and is a very convenient option for business owners to receive payments from customers and also to send funding to their customers, such as for Merchant Cash Advances. The businesses that send funding to their customers are the ones who would benefit from ACH Leads. Building clients in the merchant cash industry is not an easy task. If you have a merchant cash advance business, then this means you need to reach the right people at the right time. For this purpose, ACH records have proven to be very helpful.
Continue reading Need a Boost in Your MCA Business? Get an ACH Leads List
How Do ACH Lead Lists Fit into a Merchant Cash Advance Business?
Today, startups and small businesses that need immediate capital have a billion dollar industry eager to fund them: MCA providers. Although the industry is just a decade old, it has shown significant growth in the last few years. While there were only a handful of funding providers following the recession, there are thousands of them now in the US alone.
Continue reading How Do ACH Lead Lists Fit into a Merchant Cash Advance Business?
Feel the Difference in Your ACH Marketing with ACH Leads
In the current scenario, while traditional banks are no longer catering to the funding demands of small businesses, alternative ways for funding have emerged in the market. After the recession, companies lost their credit ratings, and they were not eligible to be approved for loans. However, they still needed funding to sustain their business or for business expansions. At that point, it was the right time for Merchant Cash Advance lenders to step in. Now, it is easy for small businesses to apply for loans, even with low credit ratings and only one year in business. The alternative lending business has quickly become a popular mode of funding for business owners.
Continue reading Feel the Difference in Your ACH Marketing with ACH Leads