The Merchant Cash Advance is a type of financing that is positioning itself among the best business loan options, and it offers features that make it ideal for small and medium-sized businesses.
Financing for SMEs is always helpful for companies, of which it is estimated that 75.15% use it mainly to acquire inputs and 17.66% for debt payments, according to the Business Demographics Study (EDN 2021 ).
These two elements are key for businesses to stay afloat, which is why it is important for them to have the necessary resources as soon as possible, and MCA online loans are ideal in this regard.
What is Merchant Cash Advance?
The MCA is not the traditional type of loan to companies, but consists of cash advances that are granted quickly to the requesting companies, this makes it the optimal product to acquire equipment, raw materials and settle debts with suppliers.
MCA cash advances are paid with an established percentage of the sales made by the borrowing business, with which the payment terms are flexible and the debt does not become heavy, since selling translates into a win-win, both for the lender and the borrower.
These cash advances are given with a fee, which can be given in full as an advance, or applied within the aforementioned applicable percentage on sales made.
How to choose with which entity to request this financing for SMEs?
Now that you know what MCA financing is, see what aspects you should look at to choose the best option.
Simplicity in the application process
Look for the entity that offers you immediate contact channels, for example one where you can make the request from its website, anywhere, at any time.
Affordable requirements
Sometimes start-ups struggle to meet the requirements of financial institutions, because they may be very new, they do not sell as much and they cannot demonstrate their good performance. For the same reason, it is advisable to look for a lender that does not set excessive requirements, comparable to those of a bank.
Quick response
Many times, time is short for businesses, even more so if they are on the verge of a financial crisis, and there are financings that take almost a month to resolve, something that ends up being detrimental to the requesting companies.
Then look for the shortest resolution times.
Low rate
One of the biggest stigmas that the MCA has is that it is expensive financing, however, there are entities that offer this credit product with very low interest rates, such as Pymes Capital. Get to know her more thoroughly.
Online financing from Pymes Capital
This entity offers the most competitive cash advances on the market, fulfilling everything you should look for in a fintech MCA lender.
Its requirements do not involve a solid credit history, only registration with the SAT, having a Point of Sale Terminal (POS) and having a minimum of 6 months of operations; decision criteria focus solely on business performance; The request is very easy to make, from their website, without requiring paperwork, and the resolution time is one day maximum!
Don’t worry about interest, only an advance fee of only 18% is requested (against interest rates that reach much higher percentages than other alternatives, such as bank loans).
Without a doubt, the best option. So if you want resources for your business, your ally is Pymes Capital.