How Does it Compare to a Bank Loan and is it Better For You?
The current economic crisis is bringing about a great change in the preferences for business financing sources. Merchant cash advance providers have risen to the occasion in the economic crunch to help struggling businesses while traditional banks are either closing themselves down or refusing loans.
However, the economic slowdown is not the only reason merchant cash advance providers are thriving today. They are offering services that are much more business-friendly than regular banks with get financial help with an advance stringent loan regulations.
Immediate cash availability
The approval cycle for getting an advance from a merchant cash advance provider is quite short. It takes 24-48 hours for the advance to be approved. If the borrowing party has done business with the provider before, the cash is transferred into the business account within 2 days.
If the business goes to a bank, the loan approval cycle itself takes months. This is an impossible wait for a business that is already crippled with low finances. A merchant advance provides the immediate boost needed for the business to recover and resume operations. Bank loans are too archaic to be useful, especially if you need the cash within a short period.