Merchant cash funding has garnered the attention of thousands of business owners who have wanted to expand their businesses in the past couple of years. The surge in usage of this unorthodox method of obtaining finance is because of the failure banks have demonstrated in fulfilling the financial needs of today’s business owners.
Banks have chosen to stick with their bureaucratic and tedious system that judges people on the basis of their credit history restrict them in unnecessary ways and binds them from negotiating in a tyrannical centralized system. Merchant cash funding, on the other hand, functions with a decentralized system and allows business owners to attain funding without any restrictions or meaningless bias.
Yet the question that arises is if Merchant Cash Advance truly is better than every other method of obtaining finance such as Credit unions, crowdfunding, and angel finance as well. Let’s take a look at these methods individually and compare them with Merchant Cash Advance.
Credit unions are financial institutions that have been here for as long as banks have. They work on a true democratic system which treats all its members equally and shares all their profits among each other. They have no bias in their working and will treat your needs as their own. You can expect to attain good benefits but the only reason why they are not as good as merchant cash funding is that they are closed groups. Becoming a member is only possible if you can get a formal invitation by a current member.
Crowdfunding allows patrons to put their funding proposal on display and let thousands, even millions of people donate to the cause. This is truly an incredible system and works in a decentralized way. The only problem with crowdfunding is the waiting time, which can last from weeks to months, even years. So clearly, merchant cash funding is much better than crowdfunding in that regard.
Angel finance is just like it sounds; it is a way for big corporations and business owners to finance small ones because they are interested in their ventures. Biggest examples of this would be Elon Musk purchasing Neuralink or Facebook purchasing Oculus Rift. Due to a small pool of angel financiers and a large torrent of business owners looking for them limits its perspective. Also, merchant cash funding is better because you don’t have to follow the rules of your financer forever.
Merchant Cash Advance
How Merchant Cash Advance is superior to all other methods of obtaining finance can be answered with following reasons:
- It follows a decentralized system, making the business owner an equal partner.
- It imposes no restrictions and asks for no collateral.
- A business owner can negotiate on his/her terms.
- The process is fast-paced and repayment is completely hassle-free.
These are the ways why merchant cash funding is much better than any other means of finance. Another added advantage of Merchant Cash Advance is the fact that it is incredibly flexible and open to changes with technology.