There are countless reasons that a small business owner may need capital. A new restaurant needs funds for inventory or salaries, a dentist or doctor needs to buy a piece of equipment, or a home builder needs new tools. There are hundreds of reasons, but they are all looking for the same thing: funding. Luckily, a hot trend in the financial services industry is Merchant Cash Advances.
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.
Merchant cash advance companies have some very important days in the year: Small Business Saturday, Black Friday, and Cyber Monday. These days hold relevance, not just because they support small business, but also because they coordinate with their success.
What we are trying to imply is that it may seem easy for lenders to say that they are highly coordinated, but the truth is that the mechanism is what helps them to get paid, irrespective of the performance of their retail holidays. A regular loan has to be cleared regardless; it has nothing to do with the volume of sales.
Even though alternative modes of funding have flooded the market, businesses are still opting for credit cash advances. Since, funds are always needed by business owners, it’s time that you mention the differences between a credit card cash advance and a MCA when you market your loan to UCC leads.
During lean times, one of the biggest decisions business owners need to make is where to get additional capital from and how to obtain it.
Marketing a business loan, such as merchant cash advance, is a bit challenging. With so many providers having emerged in the recent years, the competition is soaring high. But, in order to choose the right course of action for your business, you need to ask two questions: Should you buy leads for your business?
If yes, you need to take care of two important things:
1. Are you going to take the job of follow-ups and nurturing them?
2. Can you afford to finance it?
All merchant cash advance providers understand that MCA leads won’t be interested in taking a loan from them unless they are convinced about the benefits. And, the way providers educate them makes all the difference in the sale.
Cash is the most essential requirement of every small or mid-sized business enterprise. It is used for making payments to employees, suppliers, inventory maintenance, and a number of other functions for business growth. As a result of recession, the credit market has tightened its rules, and in other words, most banks are incapable of providing businesses with cash advances. So, what should businesses do to fulfil this requirement? Go for a Merchant Cash Advance!
You know well that all businesses with recent UCC filings need a lot of capital to launch their venture. Or when a business is expanding, it needs a quick supply of cash to keep up with the pace. Traditional loans, or bank loans, come with a lot of terms and conditions and can be pretty difficult to get. In such a scenario, a revenue based loan could be of much help. And, if utilized wisely, it could help businesses achieve their desired growth. Since cash is an important aspect of running a business, without it, a business might end up in a growth stalemate.
A merchant cash advance is a very convenient option for all cash-strapped business owners. Typically, these loans are more expensive than the traditional business loans taken from a bank, but one should beware of “too good to be true” financial solutions. Before you decide to target UCC leads for this, you should get yourself acquainted with every aspect of an MCA so that you do not end up in a financial disaster.
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:
Each year we witness new and prospecting merchant cash advance businesses, run mainly by small business owners and entrepreneurs. All these people who are new in the MCA industry get to see the real world: a world beyond virtual life and social media. What fascinates these newcomers is the fact that they can connect with prospecting clients by means of mailing them a small write up about themselves. But no technique “guarantees” success. Some small easy-to-make mistakes can ruin it all. Now the question is, even if you have a merchant cash advance mailing list, how should the direct mailing campaign be designed so that it reduces or avoids the probability of making these mistakes? Here are some of the mistakes easily made that are quite avoidable: