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Small Business Loans vs. Cash Advances
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Working capital is necessary for new or growing businesses. Unless you have an inheritance or a large chunk of savings, you will probably need to seek out avenues to obtain this working capital for your growing business. It is important to focus on ways to obtain funding for your business right away.

Getting a small business loan may help with starting your business, buying your business, and purchasing equipment. A loan is borrowed money that needs to be paid back with interest. This means that getting a small business loan will end up costing you money in the end because you will have to pay back more than you have taken out.

The Loan Application Process

In order to obtain a small business loan, there is an application process. This can be a lengthy and sometimes time-consuming process. If applying for a small business loan, be prepared to provide two to three years of tax records, a list of collateral that you own, a business plan, and many other required documents. Be forewarned that many banks and traditional lending institutions may charge a credit application fee, as well as require a perfect credit rating.

Statistics show that nearly 92% of business owners are refused loans from traditional lending institutions, such as banks, due to lack of collateral, insufficient time in business, and less-than-perfect credit.

Those who are fortunate enough to meet the strict requirements that are necessary to obtain a small business loan, should also be prepared to wait several weeks to a month before being able to have access to the funding.

The Pros and Cons of Loans

There are many pros and cons to getting a small business loan. On one hand, you will have the money that you need to start up your business, which can lead to financial success. On the other hand, once you have the loan, you are responsible for paying it back, even if your business does not do well. While it might be nice to get the money that you have always wanted, keep in mind that you'll be in charge of paying this money back in full.

Additionally, there are monthly payments to make, regardless of whether or not your business is succeeding. If you fail to make these payments on time, there will most likely be late fees tacked on to your balance.

The Benefit of Cash Advances

For those who don't feel that traditional small business loans are right for them, there are other solutions. Many who fail to meet the rigid requirements set by banks find working capital options in cash advance companies. These companies provide small businesses with working capital to enable them to further their growing businesses. One specific cash advance company, MerchanCreditAdvance, offers many benefits for clients who seek out their services.

With a cash advance from MCA, clients can have quick access to the working capital that they need. Approval is given within 24 to 48 hours. Once approved, the cash is deposited in the merchant's checking account within 10 to 14 business days!

Additionally with MCA, there are no set interest rates as with traditional loans. MCA provides funding by utilizing merchants' future credit card sales. This enables clients to avoid the hassles of fixed payments, fixed collection time frames, and late charges. This is because all of the payments made to MCA are completely automatic!

To learn more about how MerchantCreditAdvance can benefit you and your business, call 800-503-1146 today!

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