When it comes to securing financing, small businesses have a multitude of options. But among the sea of lending institutions, two names often rise to the top: Capital Express and Premium Merchant Funding. While both offer funding solutions to help small businesses stay afloat, there’s been a noticeable shift towards Capital Express. But why is this the case? What makes small businesses choose Capital Express over its competitor?
In this blog post, we will dive deep into the key reasons why Capital Express has become the go-to choice for many small businesses. Through a detailed comparison, we will highlight the advantages Capital Express offers over Premium Merchant Funding and explain why more and more businesses are opting for this innovative financing option.
1. The Business Financing Landscape: Who is Capital Express?
Capital Express is not just another business lender. It’s a trusted partner for businesses seeking flexibility, transparency, and personalized support. Known for its commitment to customer service, Capital Express offers a wide range of financing options, including revenue-based funding and unsecured business loans, making it a versatile solution for many small business needs.
Key Offerings of Capital Express:
Revenue-Based Funding: This option allows businesses to repay based on a percentage of their revenue, ensuring that payments stay manageable, especially during slower periods.
Unsecured Business Loans: Capital Express doesn’t require collateral, which means businesses can access funds without risking their assets.
Customer-Focused Support: With a dedicated team of experts, Capital Express ensures personalized service, guiding businesses through the loan process from start to finish.
2. The Appeal of Premium Merchant Funding
Premium Merchant Funding is another popular choice for small businesses looking for fast capital. This company offers merchant cash advances (MCA), a type of financing where businesses receive a lump sum of cash in exchange for a portion of their future credit card sales. While it may seem like an appealing option for quick funding, Premium Merchant Funding doesn’t quite offer the same level of flexibility or transparency that Capital Express does.
Key Offerings of Premium Merchant Funding:
Merchant Cash Advances (MCA): Quick cash based on future sales.
Fast, Minimal Documentation: The application process is streamlined, but it’s mostly a one-size-fits-all model.
Daily Repayments: Payments are deducted daily, which can make cash flow management difficult.
3. Flexibility in Repayment: Why It Matters
One of the primary reasons small businesses are turning to Capital Express is the flexibility in repayment terms. Many small business owners are wary of daily repayments, as they can strain cash flow. Capital Express offers tailored repayment plans, particularly with revenue-based funding.
Table: Comparison of Repayment Options
Feature
Capital Express
Premium Merchant Funding
Repayment Structure
Flexible, tied to revenue performance
Daily deductions from sales
Length of Repayment Period
Flexible (up to 24 months or more)
Short-term (often 6-12 months)
Impact on Cash Flow
Less strain on cash flow due to flexibility
Can create cash flow strain
With Capital Express, businesses pay a percentage of their monthly revenue, which aligns with their earnings, ensuring repayments don’t overwhelm the company. This flexibility helps businesses maintain healthy cash flow, especially in uncertain times.
4. Transparent Terms vs. Hidden Fees
Transparency is critical when it comes to business loans. Capital Express is committed to clear and upfront communication about all fees and interest rates. This contrasts with Premium Merchant Funding, which, although it may seem straightforward, often includes hidden fees and unclear terms, particularly with the MCA model.
Why Transparency Matters
Clear Terms:Capital Express offers clear terms, ensuring that business owners know exactly what they’re signing up for.
Hidden Fees in MCAs: With Premium Merchant Funding, business owners might not fully understand how much they are paying back due to the complex structure of MCAs.
5. Faster Approvals: How Speed Impacts Small Businesses
Time is money, especially for small businesses. Capital Express understands this and offers quick approval times, often within 24 hours. While Premium Merchant Funding also offers quick approvals, the lack of a tailored process can sometimes result in businesses being approved for amounts that don’t fully meet their needs.
Capital Express Approvals:
Quick Process: Businesses can expect approval within one business day.
Tailored Assessment: Capital Express evaluates each business individually, ensuring that the loan offered fits their specific needs.
In comparison, Premium Merchant Funding relies on an automated process for approvals, which may not always result in the best terms for the business.
6. Customer Service: More Than Just Funding
Small businesses need a lender that doesn’t just offer money, but also reliable support throughout the process. Capital Express shines in this area, with personalized customer service that helps businesses every step of the way. In contrast, Premium Merchant Funding has received mixed reviews when it comes to post-loan support.
Why Customer Service Matters
Capital Express: Offers direct contact with loan advisors, ensuring businesses understand every aspect of their loan.
Premium Merchant Funding: Customers often report delayed responses and difficulties in reaching their representatives for assistance.
For business owners seeking more than just a loan, Capital Express provides the kind of support that fosters long-term growth and success.
7. Loan Variety: More Than Just One Option
While Premium Merchant Funding primarily offers merchant cash advances, Capital Express provides a broader range of financing options that cater to diverse business needs. These options include revenue-based funding, working capital loans, and equipment financing, allowing businesses to choose a loan that best suits their goals.
Table: Loan Options Comparison
Loan Type
Capital Express
Premium Merchant Funding
Revenue-Based Funding
Yes
No
Working Capital Loans
Yes
No
Merchant Cash Advances (MCA)
Yes
Yes
Equipment Financing
Yes
No
With Capital Express, businesses can select from a variety of loan types, ensuring they’re receiving the best financing option for their specific needs.
8. How Capital Express Supports Business Growth
Capital Express is more than just a funding provider—it’s a true business partner. From offering personalized repayment plans to providing access to small business loan brokers who can help navigate complex decisions, Capital Express is invested in the long-term success of its clients.
In contrast, Premium Merchant Funding is often focused on short-term, emergency financing solutions without much regard for how businesses will manage their future.
9. Which Lender is Right for You?
If you’re a small business owner, you’re probably wondering which lender is the best fit for your needs. Here’s a quick comparison to help you decide:
Feature
Capital Express
Premium Merchant Funding
Repayment Flexibility
Highly flexible, tied to revenue
Fixed daily payments
Loan Options
Revenue-based, working capital, etc.
Merchant cash advance only
Customer Service
Personalized, hands-on support
Limited, automated support
Approval Process
Fast, tailored assessments
Quick but automated
If you’re looking for long-term growth, flexibility, and transparency, Capital Express is your ideal choice. However, if you need fast, short-term funding and can handle daily repayments, Premium Merchant Funding might be a good option for you.
FAQs
Q1: What is revenue-based funding? Revenue-based funding is a financing option where repayments are based on a percentage of your business’s monthly revenue. This ensures that repayments stay manageable during lean months.
Q2: How does Capital Express differ from Premium Merchant Funding? Capital Express offers a wider variety of financing options, including revenue-based funding and working capital loans, while Premium Merchant Funding primarily focuses on merchant cash advances.
Q3: Can I get a business loan if I have poor credit? Yes! Capital Express offers financing options such as unsecured business loans that don’t require collateral and are available even to those with less-than-perfect credit.
In conclusion, Capital Express provides flexible, transparent, and customer-focused financing solutions for small businesses, making it the preferred choice over Premium Merchant Funding for long-term success. Whether you need revenue-based funding, small business loans, or expert advice from a business loan broker, Capital Express is committed to your business’s growth and financial health.
