How Merchant Cash Advance Can Provide Easy Cash to Those Seeking Construction Finance for Their Construction Company
Everyone understands the boost that an extra infusion of cash provides to small businesses. It is not only about the boost, but such businesses need extra cash from time to time to manage their day to day activities. The Same applies to construction companies as well, since they operate in an industry that depends on economic patterns. The construction and building industry are highly unstable and unpredictable, which have forced conventional lenders to stop offering them loans. The unstable nature of the industry is mainly what holds them back from obtaining construction finance. This is not the case if we talk about Merchant Cash Advance (MCA). The MCA providers are here to keep these companies in business by providing extra cash in advance whenever they need.
When you are running a business, the most important thing for you is to make sure that your company is scaling and thriving. It is all up to you as you are the one who makes all the important decisions that decide you and your company’s future. Depending on the market, there will be times when you have lots of money coming in and there will be times when you have low amounts of working capital. This may restrict you from buying key machinery and equipment, or make necessary repairs, resulting in missing a lucrative opportunity. In today’s world, it has become difficult to find a good source of working capital that easily offers construction finance. Therefore, the best option to get rapid access to cash with minimal formalities is a merchant cash advance.
It goes without saying that a construction company can enjoy lots of benefits if it prefers Merchant Cash Advance to bolster its business. The application process is easy and simple – and requires less documentation. Conventional bank loan options comprise of long and strenuous application procedures and lots of documentation. This kills the essence of needing fast cash to get the job done as quickly as possible. When you apply for Merchant Cash Advance, all you need is a valid financial statement of your business, credit history, and expected credit transactions.
Read More: How to Apply for a Merchant Cash Advance
One of the greatest benefits of preferring MCA over conventional loans is that Merchant Cash Advance providers have high approval rates. Thus, MCA is a viable option for companies to get construction finance. On the other hand, traditional bank loans have high decline rates when small companies or companies operating in unstable industries apply. According to a recent study, nearly 60% of the loan applications made by small businesses were declined by a traditional lender when compared to established businesses. This is a surprising figure, but this is the truth. Construction companies have a smaller chance of getting their loan applications approved by a conventional lender. This is the primary reason why these companies should try out a merchant cash advance option without looking for other alternatives.
Why construction companies prefer cash advance for construction finance
What makes Merchant Cash Advance more excellent funding option is that the fast cash can be personalized by the provider to meet the client’s requirements. In contrast, conventional loan providers mostly decline such applicants or involve them in cumbersome paperwork and elaborate procedures. Thus, MCA is simple and easy to get, being used in a way in which you can get most of the tasks done that were previously on hold due to money constraints.
Banks and other conventional lenders follow stringent rules and regulations that are imposed by the government. This is why such applications are mostly declined or make the approval process time-consuming. Thus, more and more construction companies are now looking to opt for merchant cash advance lenders to get access to fast cash.
Bad credit or debt history?
Even though if a construction company has a bad debt or credit history, MCA lenders can provide construction finance. These construction companies easily qualify for an MCA if they meet other requirements set by the lender. Furthermore, when you apply, there is no need to provide any form of collateral in order to be eligible for a merchant cash advance. This is what differentiates MCA lenders from traditional lenders, as most construction companies are often locked out when it comes to bank loans due to not meeting requirements.
The need to obtain financing in the construction industry is greater than ever. Even though it has an unstable and unpredictable nature, the industry needs providers who can risk everything to save them from shutting down. This was the main concept behind the inception of merchant cash advance, which offers desired construction finance every company needs. As a construction company, you can source funds from MCA lenders as they understand the nature of the industry.
The repayment schedule is also sustainable and convenient that benefits both the business and the lender. Thus, MCA has gained immense traction in the construction industry recently. As it is believed, there is a mutually agreed percentage of the daily credit transactions that are deducted to repay the lump sum amount to the MCA provider. Hence, construction companies will repay higher amounts during days with high sales volumes whereas, during low credit sales volumes, the companies will have enough cash to carry out day to day activities.
Benefits of Merchant Cash Advance
There are several reasons for a builder to apply for a MCA. The development of Merchant Cash Advance has made it convenient for small or unstable businesses to expand and grow. This is because they can get the funds when they need it the most – there is no waiting. This is a flexible option which construction companies can easily benefit from to deal with immediate financial issues effectively. Getting construction finance have never been this easier!
Read More: 5 Great Ideas for Using the Money from a Merchant Cash Advance
Here the benefits of Merchant Cash Advance for construction companies:
- Simple and easy process to obtain funds
- Easy advance qualification process
- Minimum or no paperwork required
- High approval rates
- Rare chances of declined application
- The funds received via the cash advance can be utilized for different purposes
Merchant Cash Advance – the best option if you are in need of construction finance
The conventional lenders take weeks and months to complete a loan process before deciding whether to approve the application or not. When you choose to get funds through MCA, you do not have to worry about such hassles. Merchant Cash Advance involves minimum paperwork and there are very high chances for approval. Most of the MCA fast cash is provided to construction companies in a day or so. Therefore, if builders are in urgent need of money to get things done, they will not have to wait much if they choose a merchant cash advance from a trusted provider.
Your business can take a serious hit if you do not have funding options available when you need them most. Or, if you choose the wrong option that may take months to obtain approval. With sufficient cash in hand, you can increase profits and sales.
Things to consider before applying for Merchant Cash Advice to get construction finance
- Before applying for merchant cash advance, it is important for companies to plan how they will handle their expenses. You would want to increase income with the funds coming in as well as reduce running overhead costs. Thus, develop a plan that is achievable and can help you survive the slow season.
- As a construction business, offer your clients fall and winter services. This way, you will be operational throughout the year and will have a steady workforce. However, this depends on the type of equipment and machinery you have.
- The first things you should do is apply to cash advance solutions so that you can plan the next step. MCAs have been helping businesses to easily perform their day to day activities. If you need construction finance to purchase equipment, machinery, hire a workforce, or expand – do not wait. This is the best option at the moment to help your business flourish.
- You can also hire contractors or temporary workers to save extra money. You can get all the similar tasks done well without having the need to spend much. Many businesses have adopted this. For instance, hiring a VA for your company instead of employing a full-time receptionist. As a construction business, you might not need it.
- Do you want to lease or buy the equipment and machinery? In some instances, it is a better and more affordable option when you choose to lease it. This is because you might not need to use it every now and then. This is also an efficient way to control maintenance and repair needs. Thus, if required, take full advantage of leasing.
As a construction business owner, you should know the best way to manage your business’ expenses and finances. At this moment, if you are in need of extra cash, MCA is the right choice to make.
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