What to choose between MCA online loans vs. credit cards?

Currently, there is a wide variety of financial products to access. For those looking for a convenient source of financing, choosing between MCA online loans and using credit cards has become a difficult choice.

Finding a suitable financing source and managing it well can make the difference in ensuring the success of a project or the growth of a company. To facilitate the decision, these are the main characteristics of each of the options.

Credit cards

Business credit cards are financial products made specifically for the needs of organizations, to avoid the involvement of personal resources. They are designed to expedite payments to suppliers, the purchase of raw materials or the payment of services when changing the location of operations.

One of its main characteristics is that it allows personal expenses to be separated from business expenses, so as not to generate discrepancies and misuse of resources. In addition to that, they offer much more detailed budgets and account statements than a typical card, to facilitate more efficient control of cash flow and better accounting management.

Online Loans (Cash Advance)

This alternative, also called MCA, provides an applicant company with the amount of money it needs, quickly, so that it can be used for any business need. It is one of the most flexible and innovative sources of financing that exists and can be requested completely digitally.

Simply enter the financial institution’s website, fill out a form, and in a few hours the applicant receives a response with a personalized loan proposal, according to the characteristics of your company, without unnecessary paperwork.

When granting the cash advance, you pay a small upfront fee equal to the interest. The rest of the advance is paid through a percentage of the company’s sales. In this way, it allows you to avoid debt and constantly adapts to the business’s payment capacity.

Cash Advance vs. Credit cards

This is a detailed comparison of the main characteristics of both sources of financing:

In this sense, online loans stand out for the speed of their approval, their convenient granting criteria and their low interests. For this reason, they are an especially convenient option for different SMEs that are looking for simple, fast and convenient financing.

Get your MCA advance with Pymes Capital

A reliable and responsibly managed source of financing can be the solution to kick-start a venture or to inject the capital necessary to improve its competitiveness.

If you want an MCA to drive unimpeded growth for your business, learn more about Pymes Capital solutions and discover how easy it can be to get a cash advance completely online.