If you are a business owner but are not aware of credit card processing loans, then you must be aware that it is highly difficult to get good financial capital loans today. From the way the loans are processed to the way they are repaid, everything can truly become a hassle if you plan on acquiring a business loan, simply because in the field of business, time is money, and all the time you are spending handling the loan repayment is the time that hasn’t been spent working and earning.
Every single month, when the need to repay installments arises, you may be forced to miss payment due to an unforeseen circumstance causing extra charges on your repayment. But that is just the best scenario, in the times when your business does not perform well, due to some random fluctuations in the business realm; your debt will just keep piling up. This can be a stressful experience and these kinds of loans fail in comparison to credit card processing loans that are offered by Merchant Cash Advance. In this article, we will compare the difference between normal bank loans and the Merchant Cash Advance loans which use your credit card processor as the means to repay your loan.
First, we will try to explain how bank loans are in comparison to Merchant Cash Advance loans.
Banks are the leaders of the commerce industry today, and they have been on top for more than a century now! The entire economic structure of today has been constructed by many central banks of the world. The reason why our currency does not have any value and hence is just a fiat currency is primarily the banks’ fault.
Banks have been responsible for almost all financial crisis of twenty-first century. The biggest one that occurred in 2008 happened because banks started giving out much more credit they could account for. This created millions of dollars of money that was completely out of the system. The crisis got thousands of people fired from their jobs, caused them to lose their homes, and it only filled the pockets of the top bank officials who had already predicted the crash and had already walked away with all the money.
These banks have become a thing of the past in today’s world and even though they give out credit cards themselves, they still don’t offer any loans that other privately owned companies do. Their loan processing is not timely, extremely bureaucratic, and quite tedious.
With Merchant Cash Advance, all of a small business owners dreams can be met because of their credit card processing loans.
Credit card processing loans
These types of loans are the loans which stage the complete processing of loans upon the networks of credit cards. You do not have to pay any installments and your repayment can occur through your credit card itself. This type of loans is mostly processed with the help of third party Independent Sales Organizations, which keep track of your transactions and make sure that the right portion of your money reaches the right party. It has many advantages over traditional methods of processing of loans, and they are:
- Faster: Credit card processing loans are much faster in their processing time than the other methods of loan processing. While the processing of the loan payments you will make through installments will still take hours of processing time. The transactions that automatically occur on credit cards happen instantaneously.
- Friendlier to business owners: One of the best things about loans that are processed through credit cards is that it is a lot friendlier to business owners than the bank loans ever can be. If you cannot make your installments repayment on time, you will have to pay the penalty charges. Something like this does not work in credit card processing loans since your repayment will only happen when you make sales, otherwise, it won’t take a dime off you.
- Safer: Credit cards are much safer than any other means of processing loans. Checks can bounce and cash is full of hassle. Credit card processing allows that all of your transactions are safer, and can never be stolen or bounced.
Now, let us take a look at Merchant Cash Advance and credit card processing loans.
Merchant Cash Advance
Merchant Cash Advance is a way through which many business owners can get working capital loans at a faster, safer, and much more transparent way than banks can offer. Merchant Cash Advance allows business owners who are in dire need for financial backing and the independent money lenders who help these businesses reach their goals to come together and conduct deals. And the complete credit card processing loans happen at an equal stage where both parties are able to keep their demands and only sign the contract when both of them are satisfied.
All you have to do is to reach out to the chosen Merchant Cash Advance seller and send them your proposal. Due to high success rates, you will be approached by the lender with initial offer and an invitation for a meeting. Once the contract is signed, you receive the complete amount of the loan in a lump-sum delivered through an Independent Sales Organization straight to your credit card.
Afterward, all transactions of repayment occur through credit cards, since MCA only provides this kind of loan with the repayment made possible by the pre-agreed upon portion of a business’s future credit card sales is sent directly to the lender every time a customer purchases goods and services from you. Without any hassle, as you conduct business as usual, you will begin making a contribution to repaying the loan from day one. The repayment will continue until the initial amount along with the charged interest is met.
So, credit card processing loans allow business owners to escape the ponderous nature of bank loans and pay their loans back hassle-free.