Merchant Cash Advance Leads 2022
If you operate a loan finance business and you offer cash advance loans to business owners, you will need the best merchant cash advance leads you can get. For your business to keep growing, you need to be financially prudent at all times and the only way to do this is to be strategic with your prospect scouting. In this article, we want to explain what merchant cash advance is all about, how it can help businesses and the benefits of using merchant cash advance leads 2022 if you are into the issuing of merchant cash advances to businesses.
What is Merchant Cash Advance?
Merchant cash advance is a type of financing required by businesses that accept debit or credit card payments from customers. Such businesses often have a small working capital and so, therefore, may experience cash constraints because a significant chunk of their income comes in trickles. So in order to stay afloat, they approach lenders for a cash advance.
The merchant cash advance is then issued by the lender to the business that applied for it in bulk. However, when it is time to pay it back, the customer of its business pays back the merchant cash advances from a set percentage of card payments made by their customers.
The payments are made using a card terminal. While a specified percentage of each payment goes to the business owner’s account, the remaining goes to the lender who issued the cash advances
How does a merchant cash advance work?
A merchant cash advance is the same as a loan. Once approved by the lender, the business owner can access the cash immediately. When it is time to repay the merchant cash advance (loan), the business owner repays the loan amount including the fees and a percentage of future revenue.
Merchant cash advance can be structured in two ways
- As a percentage of fixed withdrawal from a registered bank account
- As a percentage of sales
Let’s look at both types holistically.
As a percentage of sales from debit/credit card payments
Traditionally, merchant cash advance payments were made as a percentage of sales. This method works with the lender deducting a daily or weekly percentage of sales made during the period until the loan and all fees are repaid. For most lenders, the deduction is pegged at 10% of all payments but may rise to as high as 20% or more depending on the payment structure agreed between both parties.
In contrast to other types of loans issued to businesses, merchant cash advance loans are quite dynamic. They do not have a rigid repayment system so the plan for one lender may differ from another lender. Furthermore, this type of structure bases the cash advance repayment on sales and can take between 3 – 18 months for the full loan to be repaid. If sales do not come in, the loan will not be paid. So, therefore, the faster your credit or debit card sales, the faster the loan will be paid.
As a percentage of fixed withdrawals from the registered bank account
The second structure is as a percentage of fixed withdrawals. This alternative method is only charged when the borrower withdraws funds from the registered bank account. As you already know, the payments made by customers using their cards flow through the card terminal into a single bank account of the business owner.
So repayment of the merchant cash advance is not dependent on sales but rather on withdrawals made by the owner who took the loan in the first place. The repayment is triggered once a withdrawal is made from the account and may be daily or weekly depending on the owner’s preference. This type of structured repayment is based on estimating the monthly revenue of the borrower.
Lenders calculate the revenue flow of the applicant using historical data of all revenues received dating back several months or even years. After estimating the expected revenue flow, a calculation is done to determine how long it will take for the borrower to repay the amount he or she is applying for.
This type of structured repayment is unpopular with merchant services businesses and is best suited for small businesses that do not rely heavily on card payments for sales.
Benefits of Merchant Cash Advance
A cash advance loan can benefit merchant businesses that offer merchant services to customers in exchange for card payments. Here are some of the benefits of merchant cash advance leads 2022 to businesses.
Merchant Cash advance is quite flexible when the time comes to be repaid. Business owners are not put under too much strain since they will only repay the loan in percentages when they make sales. This allows such businesses to manage cash flow much better.
The eligibility for a merchant cash advance is not as strict as other types of business loans and approval is swift. For businesses under significant financial stress and in dire need of funds to manage operations, a merchant cash advance can serve as a lifeline. Some lenders approve applications within 24 hours of the borrower meeting their requirements.
A merchant cash advance is an unsecured loan which is good news for small businesses that do not have tangible collateral to put forward as security for the loan. It is less risky than secured loans which give the lender the full right to seize and take ownership of the property if the loan is not repaid.
The application process is much easier compared to other types of conventional business loans. While other loans may require a business plan, a guarantor and a host of other requirements, a merchant cash advance does not require any of such. This is one of the reasons why it takes less time for lenders to approve it. All the lender does is look at the applicant’s customer payment history via their bank-issued statement of account. They can do this online without asking for a copy from the applicant.
Little to no regard for credit score
Another reason why many small businesses prefer merchant cash advance is because lenders pay little to no regard for their credit scores. While a low credit score may disqualify businesses from accessing SBA loans and other types of business loans, this type of loan does not take credit rating that seriously. All that matters is the borrower’s sales volume and their ability to repay the loan from sales.
Less Risk of Default
Business owners who take up this financial facility are at least at risk of defaulting on the loan by accident because repayment is triggered in percentages as they receive payments for services rendered. They hardly ever incur late payment fees due to forgetfulness
Last but not least is transparency. The borrower knows how much of his sales will be deducted even before he gets the cash advance and how much the total cost will be at the end of the loan term. There are no hidden additions or spikes in interest due to an interest rate hike.
Who can apply for a merchant cash advance?
This type of financial facility is not suitable for all businesses. Instead, it is designed for a business that
- Receive payments for goods and services through card terminals
- Cannot afford to repay loans in bulk amounts
- Earn income in trickles
The lender’s ability to access the business’s credit history takes that burden off the owner to prove that their business is capable of repaying the loan. With access to sufficient information, the lender is able to make a logical conclusion.
Merchant cash advance is also useful for businesses with poor credit ratings and does not have valuable assets to put forward for a secured loan. It is also useful to cover daily or weekly expenses before sales kick in.
Merchant cash advance leads 2022
If you are a business lender and merchant cash advance is one of the financial facilities you offer to businesses, you definitely need merchant cash advance leads. You need leads for two major reasons.
Merchant cash advance loans are not as popular
Merchant cash advance loans are not as popular as other types of business loans so even businesses that qualify for the loan don’t even know about it. This makes it harder for them to approach the right source for a loan they qualify for. However, with merchant cash advance leads you can track prospects even before they require the loan.
The field is very competitive
There are so many online lenders offering cash advances to merchant businesses so this niche is quite competitive in the industry. If you want to remain ahead of your competitors you need merchant cash advance leads to identify and market your product to them before your rivals.
Benefits of using merchant cash advance leads
Here are some of the benefits of using merchant cash advance leads 2022 to bolster your business.
Increased Market Presence
Merchant cash advance leads will improve your market presence because it will make your brand more visible; but how so?
The leads help you identify business owners that require this type of business loan that you already offer. With the right information, you can cold pitch your product to them. Doing this will make your brand more visible in the financial marketplace. The more visible your brand becomes, the more prospects will be willing to find a business with you.
Land New Clients
As you may already know, merchant cash advance customers rarely walk away once they trust the lender they are working with. If you have great rates that reduce loan liability many borrowers will be willing to apply for cash advances. Merchant cash advance leads help you track these borrowers so you can market your cash advance facility and all the great rates that your business has to offer.
The ultimate benefit of using cash advance leads is that it helps your business increase your revenue stream by landing new clients. By using advanced applications to track online users using their history, purchases and other metrics you are sure to increase your revenue significantly. Many lenders rely on merchant cash advance leads 2022 to enjoy high ROIs year on year and you can do the same.
Suffice it to say that merchant cash advance leads can boost your business far beyond your wildest dreams. By tracking prospects using advanced technology and pitching your product to them you stand to gain new clients faster than the use of any other business strategy that may deliver unstable results.
MCA leads to boost your brand
If you are a financial lender who lends to small merchant businesses online, you can trust MasterMCA to provide you with quality leads that will help you track prospects that are already looking for brands like yours to borrow from. The companies we’ve worked with have continued to enjoy massive ROI using their trusted API.
Don’t wait for potential customers to come to you for merchant cash advances when you can go to them and pitch an attractive offer before your competitors do. At MasterMCA, our job is to help you generate quality leads waiting to be exploited. We do the hard part while the easy part is left to your sales team.
- give you quick access to live transfer and quality merchant cash advance leads exclusive to your business alone
- offer quality API and customized integration software to make your work easier
- integrate database automation, build datasets and track conversions
Our job is the lead you can target while yours is to do the selling and close the leads successfully. So wait no further, contact us today at MasterMCA and let us boost your revenue significantly.
Merchant Cash Advance Leads FAQs
What is Merchant Cash Advance Leads 2022?
This is a business owner or business owners involved in merchant services. They are borrowers who are looking to apply for merchant cash advance loans from lenders.
What differentiates a merchant cash advance borrower from other types of borrowers?
These types of borrowers receive payments from customers solely via credit or debit card payments.
What can merchant cash advance leads do for my business?
It can help you track potential customers looking for cash advance loans for their businesses.
Are Leads expensive to acquire
Leads are inexpensive when you consider the amount of revenue your business stands to gain if utilized properly.
Is there a cap on the number of leads I can get?
No, there isn’t a cap on the number of leads you can get. Our platform generates quality leads continuously.
How does MasterMCA generate merchant cash advance leads 2022?
We generate our leads using advanced APIs and algorithms. All our leads are quality so your sales team will not find it hard to convert them.