Today, small businesses have such a vast variety of choices when it comes to alternative business loans that it has become overwhelming. There is no choice; however, that will indeed cover several options at once. This loan option is called a MCA or Merchant Cash Advance. Here, what that entails, including the application process and the requirements will be covered. As can be seen, this article is short and there has been nothing left out. This means, no crazy makers are in this process.

Why MCA loans are the king of all alternative business loans:

MCA loans are built for the small business owner and the spirit of the entrepreneur. This means the borrower does not have to deal with the red tape that they would when acquiring a loan for a large corporation. So, Starbucks wouldn’t get a MCA but Mary’s Bake Shop or Tim’s Car Care would. Most small business entrepreneurs don’t have well-established equity in their business to seek a loan from a banking institution either. So, the MCA loan is the perfect solution for those who either can’t secure a banking loan or can’t access funds easily. Sometimes small businesses will find themselves out on a limb with no one to turn to because they are too fledgling for a bank loan. That’s where MCA loans come in and here is what to do.

Requirements and suggestions for a MCA alternative business loan

The requirements below are simple and if the borrower is organized with no extenuating circumstances, then theses steps should be all that is needed.

  1.   Take Stock: The primary thing the borrower needs to do is to take stock of their business and find out what it’s worth. A small business valuation may do the trick; valuing the equipment and any collateral they may have at least is strongly suggested.
  2.    Application: The application can be found online that is quick and easy for most MCA companies. Once a lending officer makes contact with the borrower, the necessary paperwork will be scrutinized.
  3.    Basic Requirements for a MCA Alternative Business Loan: MCA companies vary in terms of requirements but there is a range here that will allow borrowers to gauge their company alongside it.

The basic requirements are as follows:

  •    Be in business for 6 months to one year
  •    Have a monthly credit card income of $10,000
  •    Have a credit score of at least 600. The credit score does not have a lot to do with the acceptance of the loan. It only helps the borrower acquire a better interest rate and the repayment options will also expand.
  •    Have equipment or the ability to offer up an agreed upon percentage of profits to repay the loan

In closing, the MCA alternative business loan is the most widely sought after loan available today due to the flexibility they lend to the borrower. A borrower is then able to work in their business as opposed to on their business. This is a major relief for small business owners that would not have had the chance to expand or grow otherwise.