Guide to Merchant Cash Advance

Guide to Merchant Cash Advance:

Businesses that are thriving have the necessary cash flow necessary for growth and success. However, when the going gets tough, your business can take advantage of cash advance loads for your doors to stay open. Merchant cash advances are among the most beneficial and popular options for funding that are available for business owners today. Here is a complete guide to a merchant cash advance.

What are Merchant Cash Advances?

Merchant cash advances or MCAs provide upfront cash to businesses and take payments from credit card receipts regularly, typically on a daily basis, depending on the amount that was agreed upon. If your business has been up and running for over a year, it is very likely that you got at least one call over the phone that offers you a merchant cash advance.

Benefits of Merchant Cash Advances

• Get cash immediately

Among the main positive factors that make small and online business owners consider applying for merchant cash advances is that they help them get the money they need right away. The truth is that some capital or cash can be given to the business in just a matter of hours after submission of the online application. It is a good thing for business owners who cannot afford to wait for a long processing time typical of larger lenders and most banks.

• No fixed amount for repayment every month

Repayment can be made easier after some time. It might be favorable for the business, especially when there are slow sales at first since payments depend on sales percentage instead of fixed monthly amount.

A pro-tip here is that how much your advance or loan is depends mainly on the previous credit card sales. Always do your homework then be sure to show both your prior and current sales for you to know your loan terms properly.

• Little to no required paperwork

Since things are mostly done online, you don’t need to fill out lengthy paperwork that you need to scan, fax, or mail. It can reduce your wait time while increasing your turnaround time.

• Higher rates of approval

It is wonderful news for those stressed small business owners who might have been rejected for traditional bank and lender loans.  High rates of approval from companies that offer merchant cash advances only mean more chances of getting your much-needed capital.

• No need for collateral

The transaction’s approval is according to the past credit card sales of the business. If you have strong sales, you have higher chances to be approved for a merchant cash advance.

• You don’t need perfect credit

With the low dips and high swings of the economy, small business owners can largely feel the effects of this lack of stability. These effects may include low sales, dwindling markets, and bad credit, the worst of them all. Companies offering merchant cash advances provide a lump sum of cash in exchange for sales that will be made in the future. This allows them to approve such advances with little consideration or basis of poor credit scores.