Dispelling Some of the Myths About Merchant Cash Advance Loan Leads

December 7, 2017

Merchant cash advance loan leads are a proven way to expand your lending business. MCA leads are one of the most efficient ways to find high quality borrowers that can potentially create for you a consistent revenue stream as you are paid back for every credit card transaction. Lending to a particular business is also no obligation – you choose which leads you want to pursue and which ones you might deem a bit too risky.

Regardless of all the positive aspects of merchant cash advance loan leads, there is still some speculation about this industry. Some people claim the leads aren’t quality, instead just a random name and number. Those who acknowledge that leads do have integrity might think that dozens of other companies have received the same info, thus saturating the lead. Still others believe that MCA lead generation is a volume process and not specialized at all.

These are just a few of the myths surrounding merchant cash advance loan leads – and that’s exactly what they are, myths. MCALeads Pro is in the business of generating high quality leads that are more likely to turn into conversions. Our process is dedicated to getting three entities what they desire:

  • The borrower receives the money they need to have a surplus of capital for their business. This could be used for expansion, adding employees, paying off loans, upgrading equipment, etc.
  • The lender is able to make an investment in a business and thus create a steady revenue stream as that business makes sales and repays the loan. Merchant cash advance is very much like buying an investment property, except MCA involves much less work.
  • The lead generation company such as MCALeads builds our industry reputation by providing only the best leads. In turn the borrower (who may not have had access to funds from traditional lending routes) and the lender (who is looking for alternative revenue streams) are connected.

Therefore merchant cash advance loan leads are a win/win for all parties involved. If you’re still skeptical about the many myths out there surrounding this industry, let’s debunk them now:

Businesses Only Use Merchant Cash Advances When Failing

One of the reasons that you might be skeptical in obtaining merchant cash advance loan leads is because there’s a cloud over the borrower. It’s easy to assume that businesses are only trying to generate capital because they are in dire circumstances. Outsiders might view a merchant cash advance as a last ditch effort to keep their business afloat. One often met with very poor success rates.

That’s not the case at all however. You should instead understand that merchant cash advances are nothing but an alternate way to secure funds. In fact merchant cash advances can be used in the opposite scenario of the business failing.  MCA could be used for expansion, bringing in new products, adding to the workforce – all things which will ensure the loan gets repaid. It doesn’t have to be ‘either or’ between banks and merchant cash advances either. In fact, smart companies will diversify their borrowing practices to take advantage of the best rates at the time.

Merchant Cash Advances are Loans

Another reason why you might be skeptical about obtaining merchant cash advance loan leads is because of that cringe worthy word ‘loan.’ There’s an understandably negative connotation behind things like ‘loan shark’ and ‘payday loan’. Another myth about merchant cash advances is that they are these traditional loans with unreasonably high interest rates.

Merchant cash advances are a bit different however. Instead of a monthly payment, MCA advances are paid back off of a percentage of credit card receipts. These transactions are automatic and deposited directly to the borrower’s account. You don’t have to worry about late payments, incomplete payments, etc. because when the business gets paid, you get paid. Borrowers prefer this because the money is guaranteed. With a surplus of clients you get a steady revenue stream.

MCA Loans are For People With Bad Credit

Another reason to seemingly debunk merchant cash advance leads is because the business can’t get a ‘normal’ bank loan. Sometimes poor credit does necessitate the need for a merchant cash advance loan, but it’s hardly the norm. To be honest, there are tons of hoops to jump through to obtain capital from a bank. This goes for those with above average credit too. Banks want to know every minute detail about why businesses need the money. This includes how they’re going to spend it, how they’re going to repay it, etc. The failure rate is actually above 65% (and closer to 80%) for businesses to obtain commercial lending. For many business owners merchant cash advances are just a more convenient way of borrowing.

Merchant Cash Advance Loan Leads Don’t Equate to Sales

One final skepticism of merchant cash advance loan leads is that they are nothing more than a name. While no lead is guaranteed to generate a sale, your odds are much better with viable leads. Leads take all the legwork out of marketing, cold calling, and all the other nuisances of obtaining a client list.  One of the very direct myths, if not lies, about merchant cash advance loan leads is that they do not lead to sales. THEY ABSOLUTELY DO.

If you’d like to learn more about the value of these merchant cash advance leads give MCALeads Pro a call today. We can get you on the fast track to success that you’ve never dreamed of.

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