A good loan company, from the perspective of a business owner, is the one that provides the best deals in loans while maintaining a fast-paced service and quality and transparency inside it. And therefore, it is almost certain to say that banks do not qualify in this aspect in today’s world anyway. This is because banks have observed, what is called the stagnation of adaption to changes. In simple terms, banks, even when they have been the biggest financing institutions for the past three centuries are unlikely to survive through this one if they do not adapt to the rapidly changing world. And so far, they have miserably failed in this aspect and are in not considered a good loan company amongst small business owners.

Read More: How to Get a Small Business Loan in 5 Steps

This can also be attributed to the following reasons:

  •    The bureaucracy of banks that drag on a tedious process that only wastes the time of business owners, who especially do not appreciate time wasting.
  •    The banks impose a lot of restrictions on the business owners while attaining a loan.
  •    The banks also incorporate the bias of credit history while judging the business loan seekers.
  •    The banks also prefer to use a secured line of credit by issuing collateral on the business owners.

Due to all of the aforementioned reasons, business owners are forced to look at the other way. While there are quite a few ways to attaining business capital, only a few can even withstand the monopoly and funding of the banks. But luckily for us, there is Merchant Cash Advance as a good loan company. Let’s understand it further by examining its processes.

Read More: Merchant Cash Loans: Understanding their Need and Benefits

The process of Merchant Cash Advance

Merchant Cash Advance is a new innovative method of exchanging commerce which happens in a smart decentralized system which is controlled by business owners, independent lenders, and independent sales organizations. Each three of these partners act in their particular roles in the process of Merchant Cash Advance.

The business owner is the debtor who attains the loans from the independent lender. While the independent sales organization acts as a medium through which their financial exchanges and the repayment of the loan happens. The process works in a simple business like way. The business owner approaches the independent lender through his/her business proposal. And should the lender accept it, they both are called for a meeting.

Inside the meeting, the business owner is able to negotiate on his terms without any restrictions and afterward, he/she receives the entire loan amount in a lump sum. This is where merchant Cash Advance truly becomes a good loan company because it uses a great method of repayment that is much better than that of banks’.

A small portion of the business owner’s future credit card sales is automatically deducted and transferred to the independent lender through the help of the independent sales organization. This process repeats itself until the loan is settled.

And so, Merchant Cash Advance is a faster, much more convenient, transparent and it is a brilliant loan company used to obtain funding for small business owners.