Merchant Cash USA Announces Direct Lending for Small Business Owners

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Merchant Cash USA announces it will not be working with Independent Sales Organizations (ISOs) and their agents, and instead will be a direct lender of cash advances to small businesses across the U.S.

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Merchant Cash USA announces it will not be working with Independent Sales Organizations (ISOs) and their agents, and instead will be a direct lender of cash advances to small businesses across the U.S.

ISOs are lead generation companies that use agents to connect funding sources with business owners, thus securing a cash advance for these companies. The agent will typically include numerous fees with using this service. Direct lending cuts out the middleman, which can possibly save a small business thousands of dollars. Direct lending means that Merchant Cash USA is the primary source provider of requested capital. Meaning there are no hidden fees involved in contracts, and cheaper interest rates can typically be offered to those that qualify. Advances are dispersed not based on a personal income credit score but by strength of one’s business.

During the economic recession, traditional banks approval of small business loans rapidly declined to a rate of less than 25 percent. The merchant cash advance industry was introduced during that time frame as alternative funding source for businesses, but has traditionally held a negative reputation since its inception. Mainly because certain operators would tack on hidden fees, concealed clauses, and high interest rates in contracts. Small business owners that were desperate for capital and denied loans from banks many times turned to these organizations because there were no other options. However, eight years later competition in the industry has led to a major drop in interest rates, while most of the detrimental operators have been shut down.

Today, some major merchant cash advance organizations work with ISOs to match their clientele with funding sources, but many times this can include various registration and monthly processing fees that can potentially equal thousands of dollars. If that same business owner needs multiple cash advances from numerous funders, the ISO agent could potentially charge them those same high fees each time they need to get a cash advance. Those who choose direct lending can avoid these fees entirely and come back for a better rate each time they may need an advance.

Merchant Cash USA wants to become a direct lender of capital to avoid any confusion with improper disclosure of terms, and give the small business owner the most capital for the lowest rate. Bringing better value to the business owner will always be the number one priority. By cutting out ISO agents and working directly in house, the organization is hoping to steer the industry into an even more profitable and positive direction with the small business owner.

About Merchant Cash USA
Merchant Cash USA was founded in 2015 to help businesses grow by obtaining the cash flow they need. The organization's mission is to offer small to medium size business owners cash advances without the hassle of big bank requirements. Visit merchcash.com to find out more of follow us on social media. Facebook and Google Plus: Merchant Cash USA and Twitter: @merchcash.

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Kirsten Johnson
@Merchcash
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Merchant Cash Usa
since: 03/2015
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