(PRWEB) November 21, 2011
A credit report is a usual part of applying for a business loan, just as it is when asking for any form of credit, but what if you're running a start-up, or your business financials don't look all that great on paper? Are you out of the running for a small business loan? Not with Merchant CashinAdvance.com. In an effort to support the growth of small and medium-sized businesses, the cash advance service for merchants has eliminated the use of credit reports from their application and funding decisions.
How can this be? Company spokesperson Rebecca Randells explains, "Our funds aren't conventional loans, but a true cash advance. We provide funds - generally within 48 hours of your application - and the money is literally a cash advance against your company's credit card transactions. Loan repayments are made automatically, via a minimum percentage of each transaction processed. Since your company's credit is not an issue, only its performance, we've decided not to require credit checks."
In an age where mega-corporations rule the world, and smaller businesses are fighting to keep afloat, this may seem like a deal that's too good to be true. Not so, says Randells. "Our service is based on your company's performance. Obviously we're not giving away free money. You'll have to provide records of your existing credit card transaction volume." She continues, "New businesses, especially, don't always have credit histories that speak to their stability. Credit card transactions, however, show exactly how that business is doing. This is why we are no longer looking at credit reports."
The decision to eliminate credit checks was actually made several months ago, and pilot-tested with a small group of applicants. The results, Randells said, were favorable. "Since we arrange automatic payments, we didn't see much difference between those clients whose credit we looked at, and those we didn't." The new no-credit-check policy rolled out company-wide at the beginning of November, but Randells said she doesn't expect much of an increase in applications until after the holidays.
"Most businesses are too caught up in getting through the holiday season to worry about loan applications," she explained. "Even if they don't have to worry about their credit."
For more information, visit the company's website at http://www.merchantcashinadvance.com or call (877) 871-6097.