Merchant Cash Advance: Easy to Find and Use, but Danger Does Lurk

It doesn’t take long for a financing secret to spread, particularly in a challenging economic environment. That may explain the recent increase merchant cash advance (MCA) business. This form of financing bucks the modus operandi of traditional lending in several unique ways. But choose an MCA vendor wisely. Here’s why.

MCA Qualification a Breeze
The first difference between a merchant cash advance and traditional loan is the qualification process. MCA vendors will take you on when many big bank lenders won’t. According to the Techspice blog, credit history has no bearing on whether or not you qualify for an MCA. Because you’re trading a portion of future sales, all you need to show is that your business is profitable. MCA vendors will do the rest.

MCA Versatility Confirmed
The MCA can be used for just about anything related to growing your business. And repayment is on a sliding scale that’s sensitive to the seasonal ebb and flow of your particular industry. AllBusiness reveals these features of the MCA that attract a wide range of companies:

• Repayment tracks the revenue trend of the merchant's business
• Promotes healthy cash flow within the business
• Payback is automatic based on a set percentage of sales

MCA Pitfalls Exist
Just like with any financial arrangement, you should take care as to who you align yourself with. There are unscrupulous MCA vendors out there who know how to take advantage of you. The Dallas News reminds you to take the time to filter out the notable merchant cash advance vendors to avoid costs that can reach 28 percent of every dollar.

Unsecured Business Loans: Leaving the US and Heading to China

The unsecured business loan is entering into a unique period of its development. This familiar form of business financing is leaving the country that made it famous and moving to the Orient. Perhaps because we’ve abused it for so long. Or perhaps because China has a financial infrastructure to handle its consequences. Whatever the reason, unsecured business loans are changing before our very eyes.

Goodbye, Red, White and Blue
BusinessWeek blogger John Tozzi explains an interesting conundrum. In his post ‘What’s the future of small business credit?’, he describes the movement of business from ‘brick and mortar’ to online--and the financing difficulties this trend creates. Big banks are far less apt to grant a $20,000 unsecured business loan for online add placements than for tangible pieces of equipment that can be liquidated if the business fails to make payments.

Hello, Country of the Rising Sun
Unsecured business loans may be disappearing in North America, but they’re just gaining a foothold in China. Citibank (China) has launched unsecured loan programs in Beijing. First launched in Shanghai in May 2008, this non-collateral loan offering has caught on and is spreading. And the best part of the program is that the APRs on these loans will stay steady even through a volatile market.

Unsecured Business Loans for Your Business
AllBusiness discusses unsecured business loans for those brave enough to seek them out. Lenders look at the credit history because the responsibility to repay the loan will fall on the owner. Carefully determine what the loan is for, how it will benefit the business and how you’ll repay the principal.