Merchant Cash Advance
Merchant Cash Advance
Business opportunities through flexible funding.
Merchant Cash Advance
Funding Amount
$5,000 to $2,000,000
Payment Terms
Between 3 to 24 months
Funding Time
Same day 24 hours
What is a Merchant Cash Advance?
A merchant cash advance is a type of financing that provides small business owners with a lump sum of cash in exchange for a percentage of their future credit card sales. This type of financing is also sometimes referred to as a merchant loan. One of the advantages of an MCA is that it’s easy to get approved for, and the turnaround time is quick.
How does a Merchant Cash Advance Work?
To apply for an MCA, you need to meet minimum qualifications, including being in business for at least three months, having a minimum monthly revenue of $10,000, and providing bank statements for at least three months. If you meet these qualifications, you can apply for an MCA, and once approved, you will receive a lump sum of cash. Repayment is made by automatically deducting a percentage of your daily credit card sales until the advance and fees are fully repaid. Repayment terms can be flexible and range from as little as 90 days to as long as 18 months.
Minimum Qualifications
Time In Business
3 months (minimum)
Monthly Revenue
$10,000 (minimum)
Bank Statements
3 months (minimum)
What are the Benefits of a Merchant Cash Advance?
One of the main benefits of an MCA is that it provides quick funding, often within a few days, which can be helpful for businesses that need funding fast. Additionally, MCAs are easy to qualify for since they are based on a business’s credit card sales, rather than their credit score. Repayment terms are flexible and based on a percentage of daily credit card sales, making them ideal for businesses with fluctuating cash flow. Furthermore, MCAs typically do not require collateral, making them accessible for businesses that don’t have assets to put up as collateral for a loan. Lastly, MCAs can be used for any purpose, including working capital, inventory, or expansion.
How is a merchant cash advance repaid?
As previously mentioned, repayment for an MCA is made by automatically deducting a small percentage of a business’s daily credit card sales until the advance and fees are fully repaid. This repayment method is known as a “holdback” or “split funding” and is based on the merchant’s credit card sales volume. Repayment amounts can fluctuate based on a business’s sales volume, and some providers may have a minimum daily repayment amount, regardless of sales volume.
Who Qualifies for a Merchant Cash Advance?
If you need quick access to working capital and most of your sales are paid through credit cards, then a merchant cash advance can be a good option to finance short-term needs. It’s also a great option for companies that don’t qualify for traditional business loans, such as those with little or no collateral, bad credit scores, and limited business history. MCA providers make it easier for small business owners to apply and get approved.
Conclusion
A merchant cash advance can be a quick and flexible way for small business owners to access working capital. By providing quick funding, easy qualifications, and flexible repayment terms, MCAs are becoming a popular financing option for businesses. If you’re a small business owner in need of funding, consider exploring the benefits of a merchant cash advance.