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.

merchant account cash advance

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.

How Can the Hospitality Industry Benefit From Merchant Cash Advances?

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.

Continue reading How Can the Hospitality Industry Benefit From Merchant Cash Advances?

Why MCA’s are Taking Over Traditional Bank Loans

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.

SEE ALSO: How Pay Per Call Marketing Will Attract Business Loan Leads for You

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.

Got a UCC Leads List? Three Effective Ways to Encourage Your UCC Leads to Get Merchant Cash Advance Loans

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.

Continue reading Got a UCC Leads List? Three Effective Ways to Encourage Your UCC Leads to Get Merchant Cash Advance Loans

Learn How Pitching MCA Leads Appropriately Brings Success

Merchant cash advance loans are the new industry trend. They are fostering encouragement to small business owners who are seeking more capital for their businesses. Getting a large volume of Merchant cash advance leads is okay, but to make these leads successful, you must have a great strategy. It’s about a good pitch! At times, poor marketing strategies let leads and your profit slip through your fingers. Using merchant cash advance live transfers services from us can be an easy way to access potential clients that are ready to learn about your services.
How Pitching MCA Leads

While there is a good market for merchant cash advances leads, the potential leads are difficult to find. In the conquest of getting the right leads, business owners spend lots of money on various ways of finding the best prospects. But, they are usually disappointed when most of their activities do not yield the expected results. To address this problem, you really need to understand that only receiving merchant cash advance leads from a good lead provider is enough. You need to pitch those leads in an inventive way to be a real success. This is what delivers the goal and objectives of your business, so your targeted ROI is achieved.

Businesses grow with effective leads, but you need to handle these leads effectively. Pitching effectively is a must. It doesn’t matter how good your product is if your prospects/leads are unaware of it. All of your sweat, blood, and tears have come down to this: how effectively can you paint a picture of a better world in your prospect’s/lead’s mind?

So, you need to be extremely careful while pitching these potential leads. Let’s learn how by dividing a call into sections and learning what the right way of doing this is and how it works well for your business. All you need to do is apply these tips to your business, and you’ll be ready to take a merchant cash advance live transfer lead on.

When Opening a Call

Identify yourself first before asking who you’re speaking to. A call opening is just not to introduce yourself to the lead, but also to help take control of the call right from the beginning.

Educate your Prospects

Pre-qualification is a must! This is an important part of the call. This is where you see if someone is even worthy of your pitch. It’s good to write down a few possible questions in advance and keep them handy while on the call.

Pitching for your Business

After you have evaluated the prospect, you enter into the phase where you go ahead and build value to your product or service.

Do your Pitch More Efficiently

Before you go forward in the call, it is important to have a brief mental run down of any objections you think they might make. Below each objection, put a comeback strategy.

SEE ALSO: Buying UCC Leads to Market Your Loan? Explain How a MCA Is Better than a Credit Cash Advance

Call Closing

When closing, it is important to give a choice of products or services, instead of a plain yes or no option. Whenever you ask your MCA live transfer leads if they’d want to buy product A or product B, they are definitely more likely to choose one.

Approaching Your MCA Leads! Justify these 7 Questions and Gain the Trust of Your Customers

Working in the merchant cash advance industry, getting leads, and encouraging the customers to buy MCA loans requires planned strategies, resources, time, and an understanding of the customer’s needs. As you are already in the merchant cash advance business, you have probably tried it before and probably have had different experiences in the past. Thankfully, getting an MCA leads list is easier now. These lists will provide you with the important information about your leads, such as contact numbers, addresses, etc.

Continue reading Approaching Your MCA Leads! Justify these 7 Questions and Gain the Trust of Your Customers

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

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.

Selling Loans to ACH leads? Know the characteristics of a good ACH mailing list

One of the biggest decisions that business owners face is how and where to receive additional capital during troubled times. Businesses need a reliable capital source, and this is where MCA loans fit in. This type of working capital loan has grown wildly popular due to the very flexible requirements for approval. If you’re selling loans to ACH leads, it can really benefit you. Through this list, you can reach the right people at the right time. This ACH mailing list is an asset to you, as your target audience is only a direct mail away. For an MCA provider, these leads are effective, as they bridge the gap between the lender and borrower.

High Quality Leads

There are plenty of opportunities for the merchant cash advance providers to look for prospects who are in the need of funds to sustain in the market. But how can they ensure they’re targeting the right people?

Executing the right technique to reach people really brings fulfillment to the efforts you put in. And this is how the successful leads are generated and success stories are created. To receive such outcomes, you need to know the characteristics of a good ACH mailing list. You need to be sure that you’re adding value to your customers’ lives before bombarding them with your messages. So, try building a fruitful and long lasting relationship with your new contacts.

A good ACH mailing list has certain features. Get to know this right here, from us, and build a strategy that delivers sheer success to the campaigns you launch!


It’s good practice to ensure the authenticity of the list prior to executing any strategy further. This will surely improve the deliverability by ensuring your contacts will receive your mail.

Keep the focus clear

A key to success with a good ACH mail list is having a firm grasp on your target audience. These parameters should align directly with your marketplace position. Once you’ve identified the specific types of people who are most likely to derive value from your expertise, you can work with your mail list. Be specific. Really specific. The more detailed demographic information you can provide (e.g., region, state, city, title, company, interest, etc.), the better quality list you’ll get.

Target audience

That’s the key! Identify your target group and plan your strategy accordingly.

SEE ALSO: How Do ACH Lead Lists Fit into a Merchant Cash Advance Business?

DO A/B tests

A/B testing is a good habit to establish. It will always help you learn more about your recipients. When you are planning your campaign for your newly purchased list, consider dividing it into two or three equal splits. Test your subject line. Test the call to action. Test the color and whatever else you can think of that might help you better connect with this group the next time around.

Targeting the Right Market: The Key to Optimal Revenue in the MCA Business Loan Industry

Well, you put in a lot of efforts when it comes to lead generation for your merchant cash advance business. And of course, rigorous planning and strategies are drawn for marketing your business loan as well. But do you always achieve your desired revenue goals from your MCA leads? You may want to achieve better revenue for your business, so you must have better tactics for your business loan marketing agenda. Sounds like quite a goal-oriented business approach! But, ensuring that all the key factors are in place, which determine the optimal ROI for your MCA business, is the only great satisfying way to start.

Continue reading Targeting the Right Market: The Key to Optimal Revenue in the MCA Business Loan Industry

Selling a Loan to ACH Lists? Know Why it’s Important to Educate Your Prospects on ACH Transactions.

The economic downturn has still managed to leave scars on many business owners. It has caused many of them to encounter cash shortfalls that have jeopardized their businesses. To continue to function, businesses need a reliable capital source, and this is where MCA loan providers fit in. There are plenty of opportunities for merchant cash advance providers to look for the businesses who are desperately in the need of funds to sustain in the market. But how can they ensure that they’re targeting the right people? Well, in order to find that out, MCA providers can buy relevant lists from a lead generation company and market their services to business owners. Businesses can buy ACH leads and streamline their ACH marketing.

Continue reading Selling a Loan to ACH Lists? Know Why it’s Important to Educate Your Prospects on ACH Transactions.