How To Obtain a Merchant Cash Advance
Have you ever been denied a business loan or other funding for your business? If this has happened to you, consider obtaining a merchant cash advance. It can be is a quick and easy method to obtain working capital for your business without facing a drawn-out funding-approval process. Even better, it not a loan, it’s an advance. It can be a Godsend if your firm is short of cash.
Merchant Cash Advances In a Few Words
Merchant cash advances, also known as MCAs, can provide new businesses and established small businesses with an appealing funding alternative, especially if they’ve been denied funding elsewhere. By using an MCA, businesses receive funding quickly as an upfront, lump-sum payment from the funding provider. They repay the advance using a percentage of the business’s future credit card sales.
Utility of MCAs
Merchant cash advances can provide a significant infusion of working capital to your business. For some, it can mean the maintenance of business operations outright. There are few, if any, restrictions on how you use the money. Here are a few ideas that illustrate their flexibility:
- Expand your business
- Pay for advertising
- Commence a new products line
- Opening new outlets
- Purchase or upgrade equipment
- Consolidate debt
An MCA can be much easier and faster than trying to get a bank loan. You may qualify even if your credit history is not stellar. As mentioned, MCAs are not loans; they are not reported to the credit bureaus, nor is any collateral required. You do not necessarily need to have established revenues yet, either, making them a great option for start-ups.
Paying off the advance is a piece of cake: The financing agent takes an agreed-upon percentage (often termed the “holdback rate”) of sales that will be paid automatically to the financing agent monthly by your credit card processor. Most businesses pay off their obligation in 18 months or less.
How To Obtain an MCA
Obtaining a merchant cash advance is considerably easier than applying for a bank loan. In many cases, you can fill out and submit the application entirely online. Once your application is made, you’ll likely be speaking with a representative of the financing agency. You will be able to ask questions and get more details about how MCAs work in your particular situation. Upon signing, your money generally arrives in less than a week’s time, sometimes with a day or two.
