Most of the small businesses usually face financial challenges while undertaking equipment financing. This can be alleviated by the merchant cash advance providers who provide MCA loans meant to fulfill a business’ equipment needs. Direct lenders appreciate the link that Individual Sales Organizations (ISOs) create between them and small businesses that are in need of these kinds of loans. Taking into consideration the cost involved in getting equipment and profitability that can be accorded by this, they are willing and pretty much able to aid such companies through ISOs.
Like is the case for any business wishing to secure a Merchant Cash Advance (MCA), they would wish for ISOs to link to them to potential small businesses who utilize credit transaction. The small businesses that ISOs source for should also at least have a 1-year experience in business besides making at least $10,000 on a monthly basis in terms of revenue. Direct lenders offer high-risk equipment financing loans, and their only gauge of the suitability of a given company is through their revenue from credit or debit sales.
They usually offer attractive commission rates for ISOs that they deal with and these are based on the total interest that would be accrued from a given MCA loan. Most of their commission rates start from at least 10% of the interest charged on the MCA and this could be revised when the deals are sweeter. Most of them would wish to reach to as many small businesses as possible which are seeking for equipment financing companies through the link created by ISOs.
The additional requirements for a small business seeking to apply for MCA loans to most of the direct lenders include the provision of a financial statement of the small businesses, an estimation of their credit sales in the near future as well as a copy of their past credit sales. Most do not seek for collateral as is the case for MCA providers and a small business with bad credit can also apply for their loans even allowing an equipment financing bad credit option.
The response time to the clients that ISOs link direct lenders with is usually quite prompt. Upon receiving the necessary MCA loan applications, the processing and approval is done in just hours. A small business can expect to get their loan in as short as a day or in about three days. The repayments are based on the daily credit sales, and they usually deduct about 10% of the daily revenue. The repayment period could vary from three months to close to a year.
This kind of financing could pose quite a challenge to many small businesses; direct lenders would wish to improve the situation with their prompt MCA loans. Direct lenders believe that ISOs create the necessary channel that could link them to most of these small businesses. Individual sales organizations should not hesitate in taking advantage of the benefit of working with direct lenders who offer equipment financing to the needy small businesses.