In this competitive era, businesses are consistently hunting for leads and facing many challenges. Lead generation still continues to be the most challenging and critical problem for businesses. Indeed, most business owners will agree to the fact that generating MCA leads is arguably one of the biggest challenges in the merchant cash advance business. And during this current economic climate, when the traditional banks appear to have been avoiding the activity of lending funds to small businesses yet it has also opened up a host of opportunities for alternative lenders like merchant cash advance to replete the gap.
You invest a lot of time, money, and resources in generating leads for your business. And then you invest in huge marketing strategies. But what does all that effort bring? Are the results satisfying or fulfilling your business expectations? If you can’t say YES, then it means your lead hunting procedure is just not promising. It’s not wise to experiment with things that can put your business at risk. In fact, a much better idea is to buy quality business loan leads from a lead service provider. Buying good, quality leads helps you execute your marketing tactics more effectively and brings you a great ROI, rather than just wasting time on fruitless prospects.
Instant cash is a need of many businesses. An MCA lender or a business in need of funds can understand this. Business owners are aware of the arduous traditional bank loan procedures for any fund related requirement. A plethora of paperwork, poor credit history, high interest rates, delays in approval, and loan sanction procedures, are just a few of the things that businesses have to go through for a loan! This makes it a bad idea to even think about bank loans! On the other hand, lays a convenient, immediate, and fast business funding solution with Merchant Cash Advance loans. An MCA is a new boom in the financial lead generation industry. It’s a perfect funding solution for your business. Be it any unplanned business expenses or your business expansion plans, merchant cash advance business loans serve all purposes.
Finding prospective clients and marketing a business is not an easy task. And it is even more difficult when you have little experience or knowledge of it. However, it is one of the most important tasks that you need to perform to accomplish your set objectives. Some businesses, such as clothing stores or food production companies, know what their target market is and can strategize their advertising campaigns accordingly. But, for a business like merchant cash advances, building clientele is no child’s play, and generating fresh business leads will need professional help.
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.
You‘ve got a warm merchant cash advance mailing list. Well, that’s the first achievement. Now, how do you convert them into HOT leads? It’s a bit more challenging to find effective marketing tactics and strategies to convert them into successful leads. In fact, there are several opportunities for MCA loan providers to look for businesses that are desperately in the need of funds to sustain in the market. A list of MCA leads can get you the small businesses that are in the need of an immediate loan. But, how do you ensure that you’re targeting these leads in the right manner?
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
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.
Hospitality operators, new or established, are well aware of how finding finances to start up or grow their business has become tough over the past years. The people who are working in the hospitality industry agree that bank lending isn’t the same as it used to be. Getting loans from traditional banks is quite complex nowadays with so many formalities, comprehensive credit checks, and much more, which are difficult to meet, especially for the startups. One form of hospitality financing that is gaining popularity is the Merchant Cash Advance or MCA.
Whether you’re planning to start a new business or thinking of expanding an existing one, a quick supply of cash is needed to keep up with the pace. Traditional bank loans come with a number of terms and conditions which are sometimes difficult to meet. Moreover, seeing the recent economic downfall, banks have even ceased funding businesses with a not so great credit history. This is especially problematic for startup businesses. With all these hoops to jump through, it can cause a delay in your cash flow which can directly affect your business operations. In such a scenario, a Merchant Cash Advance, or MCA, can be your solution.
Merchant Cash Advances – The Basics
A merchant cash advance is a quick and easy alternative to business funding without the need for collateral. For entrepreneurs who have bad credit and cannot fulfill the loan criteria of a traditional bank, merchant cash advances are the ideal solution. Unlike a traditional bank loan, MCA loans are easy to apply for and are processed quickly. In return, the MCA providers recoup their funds by deducting a fixed percentage of total credit sales, each month. It is perfect for businesses with a high concentration of credit card receivables.
Easy loan requirements, quick processing, and no formalities, are making merchant cash advances the preferred choice over traditional bank loans.
Here are Four Reasons Why MCA’s are Taking Over Traditional Bank Loans
No Credit or Collateral
A merchant cash advance is a safe approach to funding a business. Unlike traditional business loans that can affect a business’s credit rating if there is an issue in repayments, a merchant cash advance is a sales transaction and thus stays off your credit report. This is an important reason why merchants consider MCA loans over traditional loans.
Easy Loan Requests, Fast Processing, and Repayments
A merchant cash advance is an easy, straightforward loan process from start to finish. This business loan is often described as immediate cash because there is very little paperwork. Traditional banks analyze a number of things, including financial statements, business plans, and tax returns, while merchant cash advances follow simple criteria considering only two things: monthly credit card sales and the length of time in business. You do not need another reason to opt MCA loans for financing your business.
High Approval Rate
A merchant cash advance depends on actual business performance instead of credit to assess the applicants who have requested a loan. This practical approach allows any stable business to qualify for an MCA. Typically, the loan amount depends on the business’ average monthly revenue in the previous year.
Fair-Minded Repayment Methods
A leading MCA provider claimed that, “We get paid only when your business gets paid.” And, that statement is very true. While a traditional bank loan requires a fixed monthly payment, merchant cash advance repayments are a percentage amount of total credit sales, which can fluctuate based on sales volume. When sales are more, the MCA retrieves a higher monthly sum and in lean times, the MCA recoups its funds accordingly. In this way, merchant cash advances collect their share proportionally rather than draining the business’ funds.
When a business owner needs a safe, quick cash infusion, an MCA is the best alternative. Moreover, merchant cash advances offer a business the flexibility to negotiate the ups and downs of today’s dynamic economy.
As you all are aware, building clients in the merchant cash advance industry is no child’s play.
Fortunately, UCC leads lists exist and can prove quite helpful. UCC leads lists are mainly the records containing information, such as name and contact details of those businesses who have received a merchant cash advance previously and are expected to seek one again. When looking for merchant cash advance leads, having UCC records will help you reach your target audience in a more productive way.