Getting a small business loan is hard, but it’s much tougher for owners who happen to be in minority groups. Industry analysts attribute this unfortunate trend to a few reasons, among them being the low average credit score for minority entrepreneurs. Moreover, minority communities, such as immigrants, often find it challenging to come up with collateral.

That said, conventional lending institutions are not your only option for funding. If a bank turns you away due to a low credit score or lack of collateral, don’t stress. Here are the two main reasons why a merchant cash advance is an even better alternative.

Quick and easy funding

For a minority-owned business, getting a loan approved is no walk in the park. First, you’ll have to meet a horde of requirements, including a stellar credit score, clean tax remittances, a convincing business plan, collateral, and so on. And even if you meet all these demands, you still have to wait for weeks before you get the money.

Applying for a business cash advance, on the other hand, is much easier. Independent financiers like First American Merchant are typically more accommodating to minority owners because, unlike traditional lenders, they consider applicants regardless of their business history or credit scores.

Consequently, the requirements for a cash advance are fewer and more flexible, which translate to a faster application and approval process.

A manageable payment system

The primary concern that merchants have when seeking funds is if their businesses will be able to pay the debt. No matter how small, there’s always the chance of things not working out. If your choice of funding is a loan, keep in mind that whether or not your endeavor is successful, you’ll still need to make monthly payments to the bank.

Experts advise startup founders to obtain capital from personal savings and other sources and start small; then as the business grows, apply for a cash advance. Why? Well, not only does an advance get you the funds you need quickly, but to pay back a provider, you’ll be giving them a small piece of every credit card sale you make. It’ll certainly reduce your profit margins, but you won’t have a hefty loan installment waiting to be remitted at the end of the month.