Your Travel Business With Convenient Merchant Cash Advance
agencies and tour operators are aware that, their business is
anything but easy. While you have to do all it takes to keep
prospective customers happy and provide them with best services, you
also have banks that refuse to help, especially during a severe cash
crunch. To top is all, some Merchant Cash Account (MCA) providers
also are hesitant considering the risk involved with high level of
chargeback, and dealing with vendors from overseas. If you have
previous bad credit, that only adds to your woes.
can a tour agency or tour operator get a business financing?
are times when a travel agency is in need of business funding. Like
when they are considering high volume ticket bookings or
contemplating extending their business. They could also require extra
funds to hire new staff, or office renovations as well.
loans are often not an option, because of their lengthy procedure and
a high chance of rejection. In such a situation a Merchant Cash
Advance is one thing that comes handy.
about Merchant Cash Advance
is simply because business cash advance (BCA) that a tour agency can
take against their future credit and debit card payments. It works
best for them since, they will need the money while making high
volume bookings, but can easily pay it back when the customers make
agencies are one place, people often prefer to use credit and so the
revenue collection especially during peak seasons is usually high.
And so these credit cards revenue collection can be easily used as a
payback for the cash advance.
is Merchant Cash Advance a better option for tour operators?
procedure is short and cash dispersal can be quick
an unsecured business loans, no collateral or personal assets are at
tour operator can make advance bulk ticket bookings using a MCA loan
and easily pay it back when customers make their payments
revenue collection depends upon how much business is received by
credit card payment. So in a good month, a travel agency can pay
back more. And they can get the mush required respite during slack
MCA providers consider giving a high-risk business a fair chance
rate of interest is decided depending upon a travel agent’s
previous history and payback capacity
loan term can be decided according to the convenience of the travel
agency and short term or long term procedure can be worked out.
the right MCA provider
working problem of a travel agency or a tour operator is that the
nature of the business is such that chargebacks are a big problem.
Customers tend to make travel bookings much in advance, and as the
dates draw closer occasionally changed circumstances get them to
cancel their bookings resulting in chargebacks. This terms their
business as ‘high risk’
have to meet the demands of customers who would like flexibility in
payment options. Also dealing with overseas vendors, one has to deal
with different currencies, federation rules and much more.
a tour agency has had a previous history of bad credit, getting a
bank loan is out of question; also some MCA providers might be
hesitant to indulge in working with high-risk business with previous
are constantly in need of working capital to make bookings and may
occasionally need MCA loans in 2nd,
ideal MCA provider for a travel agency or tour operator must meet
payment options: A
MCA provider must provide a physical terminal as well as a virtual
terminal for accepting electronic payments as well.
It is important to find a MCA provider who allows drafting checks
through your merchant account. This helps in case there are more
ticket bookings on commission.
fees: Ensure you are not dealing with a provider who has an
exorbitant set-up fee. There are many providers who have options of
no set-up fees.
via mobile apps:
As yet another payment option for customers, a good MCA provider
will have the facility of accepting payments via mobile apps. This
gives the customers flexibility to make payments using their iPhone
or Android phones.
Incase of a high number of bookings or when having expensive
bookings, yet another facility that customers expect is to have
recurring billings. Finding a MCA provider who has this option
available is an added advantage.
made MCA loans:
A MCA must consider the nature of the travel agency or tour
operator, and how big it is, its previous loan history, and payback
capacity and create a tailor made loan option. They must also decide
upon a workable rate of interest to facilitate the tour agency.
the order may seem tall, there are some great MCA companies that meet
these factors and more. The important point, being making the right