Small business loan applications are denied by traditional and commercial banks for various reasons such as bad credit, lack of repaying capacity or for not providing supporting documents for the loan application. A Merchant Cash Advance approvals are high as the application is simple, requires fewer documentations and are not based on credit rating.
Many traditional loans are out of reach for small business owners due to lack of assets. Business Funding through a Merchant Cash Advance is a sales transaction and not a loan. Due to this, the advance does not require any collateral, unlike traditional bank business loans which require collateral to back up the loan amount.
The repayment of the merchant cash advance is easy as the portion of the sales agreed to be repaid on a daily or biweekly basis is collected by the merchant cash provider on behalf of the lender and the borrower is free from making a note of payment or missing the payment.