We’ve been getting a lot of questions about online loans and whether they’re the right fit for your business or not
that’s what we’ll be talking about today on #TheMoneyFactor Welcome to episode 8 of TheMoneyFactor I’m Ian Varley CEO of Eagle Business Credit. We’ve got some great questions coming at us online at hashtag the money factor let’s go ahead and take the first one is an MCA loan right from my business so MCA loans mca merchant cash advance online lenders there’s a lot of different varieties of quick and easy to get loans online nowadays and they’re very useful but I would put them in the category of band-aid as to a solution it’s not a permanent fix if you need cash flow for your business it can be a temporary solution which is fine so if you’re looking for a quick and easy solution you just need to borrow a few thousand dollars to fix a certain issue bump in the road whatever it is then it could be a great solution it really depends on your circumstances but if your cash flow is really the underlying issue here and for example you could have a lot of it tied up in your receivables maybe you need a more permanent solution factoring is a great way to go we can bridge the gap between when you build your customers and when they pay 45 days later you’ll get money from us within 24 hours so that’s going to accelerate your cash flow so that’s a better solution than an MCA loan because it’s not alone it works with your company your customers repay the advances that we make you don’t have to make a loan payment each month with an MCA loan typically it’s more a daily or sometimes a weekly debit to your account and again if you have a bump in the road and you don’t have the money to meet that payment very quickly you can find yourself in a default position and paying a whole bunch of fees that you didn’t expect to pay so I would say if you’re looking at an MCA loan it can be the right solution but it really depends on your circumstances it depends what you’re looking to do and how your business is performing if you’ve got you know questions you want it like that you want to talk about give us a call it’s
easier to talk about it over the phone and we can give you a little bit of advice as to what we think sometimes it’s the right answer oftentimes it’s not when should I think twice about taking out an MCA alone when should you think twice yes if you’ve already got alone in place I would not suggest getting another one they are very easy to what’s called stack and we’ve seen several people come to eagle and sometimes with up to three four and I think we even saw one with five of these loans in place that’s five payments you’ve got to make on a daily or weekly basis so I would strongly suggest not taking out additional loans if you’ve already got one you’re just compounding the repayment amount that you have to make and you know sometimes people think if they can……
#TheMoneyFactor Episode 008 – Are online loans right for your business?
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