Are you an Independent Sales Organization looking for a better way of expanding your business while exploring more options of working with business owners and financial institutions? Traditional Independent Sales Organizations normally work closely with business owners to take care of their transactions by providing them with credit cards which are normally tied-up with partner banks. Independent Sales Organizations normally have many contacts with financial institutions like banks, with businessmen they work with, and also with many independent lenders and other Independent Sales Organizations. Independent Sales organizations do not adhere to strict guidelines of government authorized institutions but are still recognized by them. They still enjoy all the benefits that authorized institutions like banks do such as security on the money, but at the same time, they also enjoy the freedom to make their own guidelines and regulations.
Up until recently, Independent Sales Organizations have only worked with businessmen to provide them with credit cards and take care of all of their credit card transactions. But with the rise of Merchant Cash Advance, a new way for Independent Sales Organizations to work with their businessmen has slowly surfaced by providing business men support, and by acquiring working capital for them through the use of their already established system.
In this article, we will look at what Merchant Cash Advance is, how Independent Sales Organizations work with Merchant Cash Advance, and finally we will understand what the benefits of selling MCA are. So shall we begin?
What is Merchant Cash Advance?
Merchant Cash Advance is a way through which businessmen who are in dire need of working capital sell a portion of their future credit card sales to independent lenders in exchange for a large capital sum in advance. The way it works is that a businessman approaches an independent lender on his/her own and applies to his/her proposal that contains his/her business details, background, credit history, and finally the projected credit card sales that the business owner intends to earn in the foreseeable future. Due to the high chances of success with Merchant Cash Advance, it is highly likely that the proposal of the business owner is accepted. Once it is accepted, the business owner and the lender have a meeting for negotiations. Everything in the entire process is transparent and only when both parties are completely satisfied with what’s on the table, is the contract signed between them.
Soon, after the signing of the contract is done, the entire working capital is transferred to the businessman’s account. The whole process can take place in just as little as twenty-four hours! But the best part about Merchant Cash Advance is the ease of payment which happens through a small pre-agreed upon a portion of every future credit card transaction of the businessman that goes directly to the lender. That means every time a customer purchases goods or services from the business owner, a small fraction of that is transferred to the lender. This process then repeats itself until the complete debt is paid along with interest.
Merchant Cash Advance involves three parties: The business owner who is the prospective debtor, the independent lender who provides the working capital of MCA, and finally an inter-mediator, the post of which is taken by Independent Sales Organizations. In ordr to understand what the benefits of selling MCA are, we are going to first understand how Independent Sales Organizations work in Merchant Cash Advance:
How do Independent Sales Organizations work with MCA?
Independent Sales Organizations, as mentioned earlier, are financial firms who work independently without any government regulation. Because of that, they are exempt from adhering to any regulations and guidelines that government recognized institutions like banks adhere to. They can simply form their own regulations and implement them however they want.
These Independent Sales Organizations tend to have vast networks of contacts with other financial institutions, business owners, and independent lenders. It is because of these massive networks that Independent Sales Organizations are helpful in Merchant Cash Advance. Here are the reasons how they work with the process of MCA.
- Establish Credibility: The first thing that Independent Sales Organizations do in Merchant Cash Advance is that they establish credibility in the eyes of both the business owner and the independent lender. Since they have massive networks; they provide the initial connection between the lender and the debtor and are the only source of establishing credibility between the two.
- Promote communication: Since Independent Sales Organizations have relations with both the business owner and the independent lender due to their previous ventures together, essentially, they become mediators between both of the parties. Many times, Independent Sales Organizations are the only way through which the lender and the debtor communicate with each other.
- Carry all transactions: The benefits of selling MCA that an Independent Sales Organization can expect can be found in providing all transactions that take place between the lender and the debtor. Right from the very first working capital lump-sum transfer to the following credit card purchase portion transactions, all are handled by the Independent Sales Organizations. They make sure that the lender and the debtor get their share of the money while taking a cut for themselves in the process.
Benefits of selling MCA
But of course, recently, even this has changed and now Independent Sales Organizations have started selling Merchant Cash Advance to the business owners themselves. This essentially enables them to increase their profits and make the business owners happy. The benefits of selling MCA by Independent Sales Organizations are many and can be enjoyed fully by simply taking the chance and starting out right away. It can be a very lucrative venture, and there is no limit to how much money one can make as long as the ISO continues to bring customers to the direct lenders, increasing commission rates, and overall profits. People in need of working capital for their business are in abundance across the United States making the process of selling MCA a highly rewarding venture especially for ISO’s since they can take advantage of the many contacts that they have in the business world. What are you waiting for? Start selling MCA today!