Merchant Cash Advance is an excellent way to get access to capital quickly. It's easy to qualify and approval is fast, so you can start using the funds to grow your business right away. Plus, you only pay for what you use, making it a cost-effective way to get access to cash.
Merchant Cash Advances (MCAs) have become an increasingly popular option for small businesses looking for alternative financing. As a type of short-term business loan, an MCA provides the business with a lump sum of cash in exchange for a percentage of the business's future credit card and/or debit card sales. This type of financing can be especially useful for businesses that have difficulty obtaining traditional bank loans due to their size, credit history, or lack of collateral.
At first glance, an MCA may seem like an ideal solution for small businesses looking for a quick injection of cash without the long-term commitment of a traditional loan. However, it is important to understand the full scope of an MCA before deciding if it is the right option for your business. In this blog, we will discuss the key features of an MCA, its advantages and disadvantages, and the criteria for qualifying for this type of financing.
A Merchant Cash Advance (MCA) is a short-term business loan that provides a lump sum of cash to a business in exchange for a percentage of their future credit card and/or debit card sales. The MCA provider will typically advance the business a certain amount of money (up to $500,000) based on their estimated future sales. The business then pays back the advance plus fees over time, usually within 12 months, as a percentage of their daily credit card and/or debit card sales. This type of financing is often referred to as “factor-based” financing because the advance is based on the estimated future sales of the business.
One of the main advantages of an MCA is that it provides businesses with quick access to cash. This can be especially beneficial for businesses that need to make an immediate purchase or need cash to cover short-term expenses. Additionally, an MCA does not require collateral, which can make it an attractive option for businesses that may not have the assets to secure a traditional loan.
MCAs also have more flexible repayment terms than traditional business loans. Because the repayment amount is based on the daily credit card and/or debit card sales of the business, the repayment amount can fluctuate. This can be beneficial for businesses that experience seasonal fluctuations in sales and need the flexibility to adjust their repayment amounts accordingly.
Finally, MCAs are typically easier to qualify for than traditional business loans. Most MCA providers do not require a credit check or collateral, which can make them an attractive option for businesses that may not qualify for a traditional loan.
US Capital Source makes the application process seamless and available to every Business owner.
Submit all the necessary information to a number of potential lenders in one place! We eliminate the need to fill out multiple applications and allow you to compare loan options from different lenders. Reduce the risk of errors and time to secure a loan, as all the necessary information is collected in one application.
By submitting all the required information in one place, businesses can speed up the loan application process and receive a loan decision much faster so you can start to grow your business, more quickly.