Direct cash lenders can provide a number of benefits for business owners, and it’s important for you to be aware of this as an ISO. You can offer business owners in your network the opportunity to connect with lenders who will offer cash in a short amount of time to take care of unexpected expenses. When you facilitate the process of making sure that business owners are paired with the lenders that can provide the best loan, you can charge for these services to bring more money into your ISO. One of the direct cash lenders that you may want to highlight the most is the merchant cash advance lender also known as MCA.
Merchant cash advances are quite appealing for several reasons. In addition to being able to get customers the cash they need in a few business days or even a matter of hours, these direct cash lenders also offer easy repayment options. The lender will require the business owner to repay the loan in small amounts each time the business makes a credit or debit card sale. Some companies may also request that the loan amount is taken in increments from their business bank account. This means that companies don’t have to set aside money each month for loan repayment, which helps businesses to stay on budget while still fulfilling their loan obligations. It always helps to do thorough research in order to choose the right one to fit your needs.
MCAs are also direct cash lenders that don’t require businesses to put items up for collateral. New businesses that need all their equipment and assets in order to get products to customers in a timely fashion or established businesses that have run into cash flow problems can benefit from a no-collateral loan. When a company can keep the machinery and equipment that produces their goods, this will produce more of a profit for the company and give the owner peace of mind.
Direct cash lenders like the merchant cash advance will also not require a high credit score from business owners. Most lenders will require that the credit score is at least 400, but most companies don’t have a problem achieving this. Even though this is a low score, businesses that have been operating for a while and have had ups and downs in profit due to the economy and a changing customer base, or new businesses that don’t have an established demographic or a long credit history can benefit from these credit regulations. The chances of approval are higher if the business sends the lender information about their company, financial goals, and details about how the money will be spent if the loan is approved.
When you are the liaison between the lender and the business owner, you can make sure that the business owner understands what is required of them by direct cash lenders. You can make sure that each party has a clear understanding of the contract and agrees to the repayment terms. There are cases in which you will be the only point of communication, so be sure to advertise this service in a way that is appealing to clients. Talk to your finance team about offering the right products from direct cash lenders today.