MCA providers are less concerned with your credit score and more interested in your credit card processing statements
MCAs are all about speed. Everything from application to money in your account is lightning fast. Approval can take less than 24 hours, and funds can be in your account in less than 3 days.
This speed comes because alternative lenders aren't held to the same intensive regulations, allowing them to expedite the underwriting process (decreasing prices for them and hopefully for you, too).
After all, this provides more insight into how much you'll be paying back each day. This allows startups, young businesses, and those with credit score issues to access small business financing.
However, a good credit score coupled with strong sales will score you a lower factor rate. This can substantially lower the total cost of your merchant cash advance.
However, to help you understand better, here is a look at the differences between payday loans and cash advances:
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Because there are so many different names for short-term loans found online, it can be difficult for consumers to know the differences between them. This is especially true when it comes to payday loans because of the various names used interchangeably to describe the same product.
Payday Loans
“Payday loans” is the most common term for referring to short-term personal loans that are typically due to be repaid using a consumer's next paycheck. They may also be known as payroll advances, payday advances, faxless payday loans, no credit check payday advances, and more.
These loans are most often available in small amounts up to $1,000 or $1,500, and have APRs ranging, on average, from 390% to 780%. Yes, you read that right. They are also considered to be unsecured loans because lenders do not require collateral. While online payday loans Massachusetts this may be beneficial because a valuable asset, such as a vehicle or home, will not be lost if you default on a loan, it also means that a lender can sue you in the event that you default on the loan.
Payday loans do not require applicants to undergo credit checks to be eligible. By doing so, even those with poor credit ratings can get fast cash when it is needed. This can cause issues for those who are in financial distress with low credit scores, who are still able to qualify for this type of loan.
