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Business Cash Advance

Is A Merchant Cash Advance (MCA) Right for My Business?

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If your company is looking for financing for your business operations, you will have many options. Traditional banks, SBA loans, equipment loans, crowd funding, invoice factoring, hard money lenders and much more. One of the most underutilized vehicles of financing is a business cash advance (BCA), also known as a merchant cash advance (MCA).

With so many different funders with various rates and terms, how do you know which choice is the right one? Read on and we will help you with understanding the definition and process of an MCA.

What exactly is a merchant cash advance:

An MCA provides business owners an advance of the monthly sales revenue regularly moving through the business account. A BCA is not a loan, but rather an advance based upon the future revenues or credit card sales of a business.

In a typical situation, a contract between the lender and the business varies on specific terms like the advance amount, rate, holdback percentage, term, and total payback amount. Once these terms have been agreed to, the funds are transferred immediately into the companies business account, with the agreement that the business promises to pay a percentage of future receivables back.

The total payback is based on either a holdback percentage of the daily processing batches or a portion of the available daily balance in the businesses account.

BCA funders judge risk swiftly by using a different set of underwriting guidelines than a traditional bank has to go through. MCA funders are interested in the history of daily receivables and credit card receipts, previous payment history and whether the business can pay back the advance promptly. This is done instead of using credit and collateral as primary decision points.

Advantages of a BCA

  1. Higher approval rates:

Business cash advances are frequently recognized for their high approval rates. Whether you have bad credit or are in a high-risk industry, it’s not going to prevent you from getting a BCA. Your credit score could be as low as 500 and, as long as your receivables align and your statements are acceptable, you could still be eligible for an advance.

  1. Collateral not required:

There’s no collateral associated with an MCA advance like there is with a typical bank loan. It’s more of a sales transaction, and nothing is reported to the credit companies. The funder is the one taking all of the risks.

  1. Flexible use of funds:

Traditional lenders have restrictions on how you can use the funds they lend, with a MCA you can use the funds any way you want. Whether it be marketing, expansion, advertising, buying equipment, paying workers, purchasing real estate, leases, or anything in between. The funds can be used for any business purpose or expense that you may have.

  1. Manageable payback:

The easy payback process is the most positive attribute for an MCA. Since the advance is revenue-based, you only have to pay back the advance in small portions either with your nightly credit card batches or small daily increments in relation to the volume of sales total.

5 tips for determining the best cash advance funder

  1. Compare rates and terms:

Since MCA funders are essentially giving you money in return for future sales, the rates are higher than traditional lenders. There is no collateral required, but they want the risk needs to be meriting. As a result, there are higher rates and fees. The rates can vary depending on a few factors, so be sure to do your research!

  1. Analyze industry experience:

Industry knowledge can be a big factor in being satisfied with your advance. Make sure the lender you’re considering has worked with other businesses in your industry or at least with comparable business revenue models.

  1. Ask for reviews and search reputation:

MCA providers may have a well-designed website and enticing content, but does the company live up to its claims? Communication is key, and you’ll be speaking with your lender a lot during your repayment process, which will be an easier experience if you are comfortable with your lender.

Research online and browse lender reviews. Ask for tips from a business owner who has used MCA’s before for their own company. Customer service is gold and can create an easy and more enjoyable funding experience.

  1. Read the fine print:

It’s crucial that you read the entire contract carefully and consider all terms before endorsing any contract with a funder.

MCA providers are technically not actual lenders, so merchants have little aid from government regulatory commissions should the relationship go astray. Be sure to review the entire contract for your own legal protection.

  1. Trust your instincts:

Think about whether an individual lender seems right for your business. Is there a genuine interest in your business, or does it feel like you are just another client?

Why Pick Lendini?:

With Lendini, business owners receive the capital they need without lengthy delays or excessive paperwork. Lendini offers pre-approvals in under three hours and next day funding of approved advances in as few as 24 hours. Our staff provides unparalleled customer service and treats each business owner with the respect they deserve.

 

 

Our purpose at Lendini is to release the potential of each small business by equipping them with appropriate and timely access to working capital. We use information, technology, and personal expertise to maximize the potential in every business we fund.

Who is Lendini and How Does it Work?

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We Are Lendini!:
Lendini prides itself in having the fastest to fund technology possible with funding made so simple, it is almost magic! Funding for your business becomes fast, easy and, most importantly, completely secure. Long gone is the wasted time spent on bank paperwork, waiting for bank approvals and sitting on hold, because Lendini pre-approves in as few as 3 hours (within normal business hours). We also offer next day funding of approved advances, once all required documents and contracts are received and submitted.

Lendini offers unparalleled funding solutions customized specifically for your business. We work with you to prepare the right economic package, whether that is a Business Cash Advance or a Merchant Cash Advance.

We are not a bank. We do not provide loans. We offer cash advances. A cash advance is a payment to a business in exchange for an agreed upon percentage of future receivables. Lendini offers two types of advances, a Business Cash Advance and a Merchant Cash Advance. Lendini’s funding range is from $1,000 to $250,000.

What We Offer:

Business Cash Advances:
A Business Cash Advance (BCA) is an advance where the merchant receives a lump-sum payment in exchange for an agreed upon share of the business’ future accounts receivable. A certain percentage, known as a “factor rate” is added to the advance amount to determine the total payback. Payments are withdrawn daily, from the business checking account, Monday through Friday until satisfied.

Merchant Cash Advances:
A Merchant Cash Advance (MCA), also know as a “credit card split”, is an advance where a merchant receives a lump-sum payment in exchange for the sale of future credit card receivables. A certain percentage, or “factor rate” is added to the sum advanced to determine the total payback. Every time a merchant processes its credit card receipts, a process known as “batching”, Lendini receives a percentage of each batch until the advance is satisfied. The use of pre-approved credit card processors is required for this product. Lendini will provide further information and assistance to merchants interested in using this product.

Where and Who We Fund:
At this time, we are able to offer our services in all 50 states to companies that may be otherwise unable to secure funding through conventional methods or when the traditional banking process is too slow to meet your pressing needs. With Lendini, there is no need for you to apply to multiple companies, we fund businesses of any size in nearly every industry. We have worked with owners that have been in business for as little as three months as well as those engaged in industries other providers avoid including, but not limited to, restaurants, entertainment, general contracting, landscaping, therapeutic, retail, hair/nail salons and resorts.

We Value You and Your Time:
We understand how valuable your time is as a business owner, so we at Lendini take great pride in our speed and customer service. Lendini is constantly striving to reduce the funding process time and minimize the effort required of business owners by eliminating repetition and implementing superior customer service. We can offer $1,000 to $250,000 in as little as 24 hours! Our funding products help you maintain a positive cash flow so that you can conduct business as usual. Funding from Lendini may be used for any business purpose you choose.

Lendini is comprised of a team of seasoned finance professionals that work with honor and responsibility. Our staff provides unparalleled customer service and treats each business owner with the respect they deserve. We value the uniqueness of each business and pledge to put our merchants’ needs first. Furthermore, we are always working to improve our method to best suit the demands of our clients and partners.

Funding in 4 Easy Steps:


1. Submit Application
2. Information Review
3. Approval or Denial
4. Final Review

Our stats:

$81,000,000

Million Advanced to Small Businesses

2,700+

Small Business Funded

Begin our 5-minute application now at https://lendini.com/ or call 1 (844) 700 – 5363 to speak directly with a representative.

Online Lending Applications on the Rise

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Inherent in the word tradition is the ongoing pull to do things the way they've always been done. Think holidays and family vacations. They are prescribed ways of thinking and acting based on a long history. If you're launching a small business, however, tradition may get in the way of innovation. Small business loans are no exception.

Traditional loans are still alive and viable. Just recently Wells Fargo committed to offering $1 billion in traditional loans to small businesses in the U.S. by 2018. Also, the SBA is making traditional small business loans easier to obtain by guaranteeing a portion of those loans, making them more attractive to financial institutions. These are great steps forward in support of small businesses growth. However, borrowers still need to meet many qualifications to be eligible, like having excellent credit, offering collateral or meeting size requirements. And borrowers still need to apply and wait–sometimes weeks–for approval.

 

Statistics = Validation

Across the board, online lenders are reporting increases in lending requests. In 2013, overall nonbank lenders loaned about $3 billion to small business owners, and requests for loans are rising steadily, according to an article in Bloomberg Businessweek. Companies like Amazon, PayPal and Square are growing their merchant cash advance programs, a validation that big companies are entering the small business finance arena.

Leaders of online and non-bank lenders say their adroitness in the funding arena make non-bank funding so popular. A lender's ability to make quick decisions and the streamlined paper trail during the application process are positives customers appreciate. Services like the ones Lendini offers help small business owners increase their cash flow without having to wait weeks, like they would through a traditional bank loan.

 

Be ready for cutting edge opportunities as they come. Be innovative. Call 844-700-5363 or complete the online application for a free quote.