With over 66% of small businesses facing financial challenges, most of them turn to loans and external funding sources to overcome issues. However, securing a loan requires a good credit score, which most cash-strapped businesses don’t have.
Applying for a business loan in Pennsylvania with a low credit score can be daunting for many. If your loan application gets rejected, your score will further decrease with nothing to show for it. To overcome these obstacles, private money lenders offer merchant cash advances, a hassle-free, modern financing solution—and the best part is, you don’t need a good credit score to get this loan.
Here’s all you need to know about securing merchant cash advances.
Merchant Cash Advances
A merchant cash advance (MCA) is a relatively new but preferred business funding option. It has less rigorous requirements than regular loans and you can pay it back using a small percentage of your monthly sales, along with a service fee. It’s ideal for small businesses looking for a quick funding solution with a revenue-based repayment structure.
Whether you’re taking cash advance loans or credit card cash advances, you don’t need good credit to secure them.
Benefits of MCAs for Businesses with Low Credit Scores
No Collaterals or Credit History
Unlike traditional business loans, you don’t need any collateral assets such as property, inventory, etc., or good credit history to qualify for funding. A private lender will only evaluate your sales and offer you a lump sum of funds. They generally check the average value of your card sales, so it’s best for businesses that accept card payments for sales.
Flexible Repayment Structure
You can choose your repayment plan from daily, weekly, or monthly payments. With other loans, you have to make fixed payments regardless of your financial situation. However, the repayment amount of cash advances depends on the revenue you earn.
Suppose you’ve chosen a weekly repayment structure, and your business had lower sales in a week. So your repayment amount will be lower too. This eliminates the strain on your finances and boosts your business growth.
Get Merchant Advance Loan in Pennsylvania from Whitestone Fund
Whitestone Fund is a trusted private lender in Pennsylvania. Due to our convenient payment terms and flexible conditions, we have the highest loan acceptance rate.
Whether you’re looking to acquire new assets or launch a new product, our merchant cash advances can keep you afloat. Besides Pennsylvania, we offer our loan services in New Jersey, Boston, and Orlando. You can also get small business loans from our private loan agents. Contact us to get started.
