An ISO has many advantages in today’s business world. They can pull from their extensive network of businesses to find companies that can perform a number of services for other professionals within the ISO’s network. They can help businesses in a financial bind by offering monetary solutions that don’t have to be government-regulated. One of the best things they can do for new companies is to point them in the direction of financial organizations that lend direct. The merchant cash advance (MCA) industry is one of the most popular options out there, and here are a few reasons why.
Merchant cash advance companies have the advantage of offering lend direct options to customers because collateral is not required. This means that new businesses can still cover operational costs or financial emergencies without the stress of having to turn over ownership of their assets. MCAs are also ideal for companies that have low credit scores or a lack of established credit. Most lenders only need to see a score of about 400 before they will consider a company’s loan application. It’s also helpful for the debtor to submit a letter detailing the history of the business, and to provide some information on how the company plans to use the funds. This will let the MCA lender know that the applicant is financially responsible and isn’t using the loan as a long-term solution to handling debt.
Another reason MCA companies are able to lend direct is that they have a simple repayment plan that most companies find appealing. Instead of having to set aside a specific amount of money each month for repayment, the cash advance is paid back in a small amount each time the company completes a debit or credit sale. This makes it extremely to keep business finances organized and keeps companies from missing payments. Business owners also have the option of having a small percentage of the loan and interest rate taken from their bank accounts on a regular basis, until the amount of the loan is repaid.
MCA loans are also ideal because the approval time is quick. Many companies will get their loan application approved in the same business day, and some lenders can deposit the money into the company’s account in just a few hours. This is a benefit that most businesses can’t get from traditional loans, and can definitely come in handy in unexpected financial situations.
You can also provide business owners with a list of organizations that lend direct so that you can charge for your facilitation services. You will likely be in charge of communicating important messages between both parties to make sure that everyone agrees to the terms of the loan and knows how long the repayment process will be. You’ll also do the work of making sure the right lenders are paired with the right business based on the business’ needs and culture and the lender’s stipulations. Talk with your financial team today about the ways expanding your lend direct list can work for you.