At Lending Source Financial, we understand that running a business can be expensive, especially when you're faced with unexpected costs. That's why we offer a variety of financing options to help you get the funds you need to keep your business running smoothly.
Merchant cash advance (MCA) loans and invoice factoring loans are two of the most popular financing options for small businesses. In this article, we'll explore what these loans are, how they work, and how they can benefit your business.
Merchant Cash Advance (MCA) Loans
Merchant cash advance (MCA) loans are a type of financing that's based on your future credit card sales. Essentially, you're selling a portion of your future sales in exchange for a lump sum of cash upfront. MCA loans are popular among small businesses because they're quick and easy to obtain, and they don't require collateral.
How It Works
To qualify for an MCA loan, you'll need to have a steady stream of credit card sales. The lender will typically look at your monthly credit card sales and offer you a lump sum based on that amount. The repayment terms for MCA loans are flexible and are typically based on a percentage of your daily credit card sales. This means that your payments will adjust based on your sales volume, so you won't be stuck with a fixed monthly payment that you can't afford.
One of the biggest benefits of MCA loans is that they're quick and easy to obtain. The application process is usually straightforward, and you can typically get approved within a few days. Additionally, MCA loans don't require collateral, which means you won't have to put up any of your assets as security for the loan.
Invoice Factoring Loans
Invoice factoring loans, also known as accounts receivable financing, are another popular financing option for small businesses. With invoice factoring loans, you're essentially selling your outstanding invoices to a lender in exchange for a lump sum of cash upfront. This can be an effective way to improve your cash flow and get the funds you need to cover your expenses.
How It Works
To qualify for an invoice factoring loan, you'll need to have outstanding invoices from creditworthy customers. The lender will typically look at your invoices and offer you a percentage of the total amount, usually between 70% and 90%. Once the lender has paid you the lump sum upfront, they'll take over the responsibility of collecting the payments from your customers. The repayment terms for invoice factoring loans are flexible and are typically based on the payment terms of your invoices.
One of the biggest benefits of invoice factoring loans is that they can help improve your cash flow. By selling your outstanding invoices, you'll get the funds you need to cover your expenses without having to wait for your customers to pay. Additionally, invoice factoring loans don't require collateral, which means you won't have to put up any of your assets as security for the loan.
Choose Lending Source Financial for Your Financing Needs
Merchant Cash Advance (MCA) Loans and Invoice Factoring
At Lending Source Financial, we offer a variety of financing options to help you get the funds you need to keep your business running smoothly. Whether you're looking for an MCA loan or an invoice factoring loan, we have the expertise and experience to help you find the right financing solution for your business.
Our team of experts will work with you to understand your unique needs and help you navigate the financing process. We pride ourselves on providing personalized service and support to our clients, and we're committed to helping you achieve your business goals.
If you're in need of financing for your small business, contact Lending Source Financial today to learn more about our financing options and how we can help you succeed.