One of the biggest hurdles for new businesses is finding suitable sources of financing. Online loans have appeared as an efficient solution to this problem that affects many businesses.
20% of companies fail to get past their first year of operations. Although the causes can be very diverse, there are at least two that have to do with capital. One is the mismanagement of resources and the other is the lack of financial structure.
On top of this, when companies are young, they have trouble finding financing, because they do not have a strong credit history. This causes financial institutions not to trust and decline loan applications.
The dilemma of financing sources for SMEs
Lack of capital can be a frustrating scenario for start-ups that fail to get off the ground and fuel their creativity. Some small businesses do well, but can’t get loans with no credit history.
As a way to counteract this problem, online loans are an option that, in addition to having a significantly easier application process, provides affordable financing for those companies that are starting up and do not yet have a well-established credit history.
These loans are based on other types of indicators, and the entities that offer them use special technology and software to determine the viability and reliability of the businesses that seek resources.
Merchant Cash Advance
One of these sources of financing for SMEs is the MCA, or business cash advance. This is a type of credit designed for companies that cannot access capital through traditional forms, such as bank loans or factoring, due to their lack of a solid credit history.
The Merchant Cash Advance is a type of loan in which a financial institution delivers a certain amount of money to the requesting company, in exchange for a percentage of future sales that it has, plus a fee established in advance.
In this way, MCAs are not based on the financial past of the company, but on its current and prospective performance, making them the ideal option for loans without a credit history.
In addition, its requirements are affordable and its online application process stands out for its simplicity and speed. Finally, both the payment terms and the amounts are flexible and depend on the performance of the business in its credit and debit card sales.
Get financing for your SME with Pymes Capital
For startups that are finding obstacles to get the financing they need to boost their activities, Pymes Capital has developed solutions tailored to their needs.
Pymes Capital allows the possibility of obtaining an online loan, just through an online form. Applicants must have their SAT credentials, those of your POS provider and 6 months of operations.
The resolution process is fast and efficient, allowing companies to quickly obtain financing tailored to their needs. Get to know Pymes Capital and discover how to help your business take off.