Why Would I Ever Use a High Interest Short Term Cash Advance Business Loan?
People frequently ask me, “Why would I take out a short-term, high-interest loan of this kind when I could go to the bank and get a long-term, low-interest loan?” In response, I say, “Good question!”
For a variety of reasons, contractors in particular frequently find it very helpful to keep us close at hand. Sometimes it may be months before a bank or insurance company pays out on a job, in which case we can give them the working capital they require to cover costs for labor and other expenses. When the job is profitable, they pay us, and everyone is content. Additionally, because they have only made a few months’ worth of payments, the interest they actually paid was quite low.
However, we don’t only support contractors. Any owner of a business may apply. I once worked on funding for a restoration contractor who said to me: “If I had $100,000, I could make $1,000,000 in a single storm season.” While there are many reasons why we lend money, this is unquestionably the best one. Money itself can be an effective tool for generating income. The interest becomes irrelevant if you can increase your company’s profits by a factor of two, three, or more because you will have paid back the loan’s interest many times over.
The ability to have the money in your account in 1 to 3 days makes a merchant cash advance loan a great tool for business owners of all types, whether they are contractors or run another kind of enterprise. The best business opportunities frequently arise on the spur of the moment, and if you are unable to take action then, you will miss the chance entirely and lose out on a tremendous return on investment because you were unable to secure the working capital quickly enough to make the investment.
When the bank declines, which they typically do, we can assist you in growing your company. Not to mention, dealing with them is a nightmare. Tax returns, profit & loss statements, business plans, etc., are required of you… and you as a business owner have better things to do than compile documentation for a bank over the course of 60 to 90 days, if you are even approved at all.
Additionally, they frequently want to control how you use the money, and even if you have perfect credit, there are still plenty of reasons they could reject your application. In actuality, banks reject more than 80% of loan requests from businesses.
We only require 6 months of bank statements and a straightforward 1-page application, and we approve 90% of our applications after our agents pre-screen them. Your credit won’t be harmed because we only check it 2% of the time, and we can typically deposit the money in your account within 1 to 3 days.
That should help you or any other business owner understand how Mom & Pop Business Funding can be a great tool to keep in your toolbox for doing business and making money.
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By keeping Mom & Pop Business Funding on speed dial, general contractors, roofers, restoration contractors, and other business owners can easily access liquid cash to use for any purpose.
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