MCA Loan vs. Other Financing Options: Key Differences

MCA online loans have become a great alternative to traditional financing so that SMEs can get the financing they need. This innovative option may be the option that best suits your business.

In Mexico there are still many small and medium-sized companies that cannot get the business credit they need. Specifically, having to meet too many requirements appears to be the reason why 39% of companies do not seek credit or a loan.

What are MCA loans?

Online MCA loans, also known as Merchant Cash Advances, can be a great option for those looking for financing.

This model consists of granting capital to a company in exchange for a percentage of the sales made by it plus an established fee, until the total debt is covered. The application is completed through a form, online.

This translates into flexible payments and terms, and a way to have financing without obstacles and without needing to be in a specific scenario, such as initial stage, high potential or many invoices to collect.

The payments of a cash advance vary in their periodicity, depending on the income of your company. In this sense, the percentage of what you pay will be adapted to the performance of your sales, allowing you to pay off the debt more quickly if sales are high.

In case your sales are not going through a good time, the payments will be adapted to your needs and will allow you to pay with peace of mind according to your abilities.

Differences with other sources of financing

This method is especially convenient for SMEs seeking financing because it offers some advantages over other means:

Approval rate

Compared to other sources of financing like bank loans or factoring, MCA loans have very high approval rates. For this reason, they allow more SMEs to access the capital they are looking for.

Approval time

These types of online loans, thanks to their simple application process and online processing, have very short approval times. In general, while bank loans can take 21 days to be approved, with an online loan you can find out in just one day if you obtained it.

Decision criteria

Other sources of financing take into consideration such as personal history, available assets or open invoices when evaluating an applicant. For their part, MCA loans only take into consideration the performance of the business, making your approval easier.

Cost

Finally, these types of loans stand out for having very low costs, just 18% of the fee in advance. Compared to bank loans with interest rates between 25% and 45%.

In this sense, compared to other forms of business credit, the online loan is very convenient in terms of costs.

The option of Pymes Capital

By facilitating financing, Pymes Capital makes MCA financing available to you for your business. With a high approval rate, median approval time of 1 day, low up-front fee percentage, and decision criteria based on business performance.

It is a friendly option for companies looking to grow. Get your financing at Pymes Capital and take your business to the next level.