As a business owner, you know there is no shortage of business funding options. From lines of credits, MCAs, to bank loans, there are countless decisions to make. How can you make the right choice for your business capital?
Here’s what you need to know about differences between loans, lines of credits, and MCAs.
Business Lines of Credits
A business line of credit is similar to a credit card, with the exception that you can access cash and you have the option of lower APRs than other options. It is also revolving, so if you don’t use that line of credit one month it can carry over to the next month.
Best of all, you can withdraw funds up to a specific amount, which means you can take from your line of credit when you need it, instead of taking that amount out in a lump sum like you would with a loan. This can prevent you from spending more than you need to and pay for items like equipment, payroll, and projects.
Another business funding option is a Merchant Cash Advance. If you would rather keep your credit out of the hands of lenders, if you have a seasonal business, or if you sell your items online, an MCA could be the right option for you. In most cases, business owners who choose an MCA do so because of the aforementioned reasons. If you fall into one of those categories, then consider this option for your business.
Securing business capital can be overwhelming, but if you know what you want and the risks associated with each option, you can make the best decision possible for your business. At Legend Advance Funding, we offer flexible Merchant Cash Advances that work with your business. Make the most of your financing options by choosing a partner with experience. Give us a call to learn more about our business capital funding options.