Even though traditional banks have more reasonable interest rates than the non-bank lending industry, there are some advantages and situations where non-bank lending is a perfect choice for small businesses. Here are some of the benefits found in securing a small business loan from the merchant cash advance sector.

Streamlined loan application process

Once you approach the merchant cash advance lender requesting for funds, they will only need information that is related to their lending conditions. Note that many of the non-lending companies are only interested in the cash flow your business or property has daily which is what they will base the loan on. If you opt to secure your business funding from a merchant cash advance lender, you have a guarantee that you will not encounter the similar problems and the extensive list of details required from banking institutions.


With the introduction of technology, almost everything is being done online, and the online application has not been left out. Note that the majority of lenders are offering the whole setup without handing over any paperwork to obtain a loan. If you are a first-time loan applicant, then you have been missing a lot, and you will be distressed to use an offline extensive and tiresome loan application process that lenders will then process through a manual system.

No regular auditing required

Note that all non-bank lenders are specialized in a type of business they lend to. Given that these merchant cash advance lenders deal with these businesses on a daily basis, there is no need for an external audit to be carried out every quarter. This leads to a significant reduction in cost for borrowers.

Diversifying your lender’s risk

In most cases, once you take a small business loan from a traditional bank, they will have to place a security over your entire business even if you have provided your assets as collateral.  In this case, the bank holds your properties while your business assets are tied up preventing you from requesting additional funding against the company.

Bear in mind that obtaining business funding from the non-bank lending industry will alleviate these shortcomings. This is because they offer the flexibility to discuss the type of security and the deterrence of holding your assets. In some scenarios, obtaining a loan from a non-bank source might be costly. Nevertheless, you can allot and diversify your risks against personal resource that might be utilized to raise cash when needed.

Flexible credit limits

Note that non-bank lenders tend to enjoy a close relationship with the way their customers perform. Many of the non-bank lenders are used to review their accounts on a daily basis. As a result, they will immediately grant your request once you ask for a loan increase. The majority of lenders tend to be very flexible with the clients who are easy to deal with and who take their time in following the whole process.

Single point of contact

Once you begin working with a non-bank lender, there is always a sales agent, followed by a relationship manager. Because of this simplicity, you will be only working with one point of contact for your day to day monitoring and inquiries. Bear in mind that you will be free to talk to the client manager or even request to speak to the director in case you feel that you not satisfied with the response.