Bank Business Loan vs. Business Cash Advance
There are many ways in which one could finance his/her small business. One of the most popular ways is through a bank small business loan, but this may be simply because many small business owners are not aware of the benefits of our business cash advances.
When closely compared to traditional bank business loans, our business cash advances may provide more business owners with more benefits.
Requirements
Banks will usually require applicants to have a credit score of 700 or higher in order to qualify for a business loan. In addition to this requirement, some banks may require borrowers to offer collateral as security for the loan and may even require that a borrower has owned his/her business for at least one year.
Banks may also want to see personal financial statements that list all the borrower's assets, liabilities, monthly payments, and personal tax returns of up to three previous years.
Merchant Resources International: We only have a few requirements for qualification to receive a merchant cash advance. Applicants must provide us with the four most recent months of their businesses' credit card statements and a copy of the business' lease with at least one year remaining.
Borrowers must also process a minimum of $2,500 in monthly credit card sales and have no unresolved bankruptcies.
Application
Banks: There is lots of paperwork and preparation involved in applying for a business loan through a bank. You must present a proposal explaining how the loan will be used, the amount that you need, and the history and nature of your business.
During the application process of a bank loan, you will need to set up in-person meetings with loan officers, and this can take a very long period of time.
Merchant Resources International: Applying for a business cash advance is very simple. Our application is very short and can be completed in a matter of minutes. After completing an application and supplying us with the necessary documentation, our specialists will review your information, and can approve a business cash advance in as little as 48 hours.
Funding
Banks: Once a bank has approved a loan, it may take up to several months until the loan is actually funded.
Merchant Resources International: After approving a loan, Merchant Resources International can have money funded into the bank account of your choice in as little as seven days.
Repayment
Banks: In order to repay most bank loans, you will have to make fixed monthly payments. That is, every month, on a specified day, you will have a particular amount of money due to the bank. If you are late on payment on any given month, you may be subject to late fees and/or interest rates.
Merchant Resources International: We do not require borrowers to make fixed monthly payments. Instead, a small percentage of your business' daily credit card sales is deducted for your repayment. With this payments process, business owners never have to schedule a business cash advance payment, or pay a late or interest fee.
