Differences Between A Small Business Loan And A Merchant Cash Advance Funded In 4 Days

Dec 15, 15 Differences Between A Small Business Loan And A Merchant Cash Advance Funded In 4 Days

Most small businesses understand the need for capital to help grow their business, take care of unexpected problems and get more inventory. However, they may not know which financing options will work best for them or which offers more benefits to them. Two primary options include the small business loan (SBA) and the merchant cash advance (MCA), which can be funded in 4 days. Both options can get you the money you need, but each works best for a particular set of people.

Small Business Loans

Small business loans are offered by a bank or other financial institution and are guaranteed by the Small Business Administration. They are guaranteed by the government in case you default, but there are still many things to consider. The process itself will take a lot of extra time and paperwork. It can take up to three months to get your money, which may not work for immediate repairs and inventory needs.

You will also get a small portion of your full amount instead of getting it all at once. While this can be helpful for some businesses who need the money to pay small bills or get inventory, it won’t work for large repair projects or expanding the company. You will also have various fees attached to the loan, such as the annual servicing fee and guarantee fees, which can be difficult to understand and annoying to pay.

MCA’s

MCA’s, on the other hand, aren’t loans at all, but rather advances of money against future money you get. This option can give you more capital, and you repay it through credit and debit card sales. This offers various benefits to many companies who rely heavily on credit card sales because you can free up your checking/savings money to use for everyday needs and still pay it back.

You are typically approved in as little as one day and will usually receive your money in about 10 business days. You won’t be waiting for months to even get approved, meaning you can use the money immediately. You will also get all the money in one large sum, allowing you to use it to expand the business or pay off a lot of unwanted debts.

Because you don’t have a fixed payment plan, you can pay less when you make less money through credit sales, paying more when you get more credit sales.

A merchant cash advance funded in 4 days could be the answer you are looking for, especially if you haven’t been in business very long. Contact Biz4Loans today at (888) 943-1497 to learn more and request a quote!

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