Is A Cash Advance Right For Your Business?
Many business owners have no idea how a Merchant Cash Advance (MCA) can provide them with FAST access to cash in order to meet their short-term need for capital! Do you want to take advantage of an opportunity to purchase inventory at a discount, need special marketing, or have some other short-term immediate needs?
A Merchant Cash Advance is technically not a loan, but rather a cash advance based upon the credit card sales of a business. Basically, a business “sells” a portion of future credit card sales to acquire capital immediately. It is a great option for a business that does a lot of credit card transactions, but might have less-than-perfect credit.
All businesses can apply for an MCA and have funds deposited into their accounts fairly quickly!
HOW A MERCHANT CASH ADVANCE WORKS
An agreement is made between the business owner and the MCA provider regarding the terms of the advance. Once an agreement is made, the advance is transferred to the business’ bank account in exchange for a future percentage of credit card receipts.
Each day, an agreed upon percentage of the daily credit card receipts are withheld to pay back the MCA. This is called a “holdback” and will continue until the advance is paid in full. Access to a business owner’s merchant account eliminates the collateral requirement required for a traditional business loan.
Because repayment is based upon a percentage of the daily balance in the merchant account, the more credit card transactions a business does, the faster they’re able to repay the advance. And, should transactions be lower on any given day, the draw from the merchant account will also be less. This means that during times of slow business, the business’ payback is relative to their incoming cash flow!!
Benefits of a Merchant Cash Advance:
- Easy Application
1 page Application, bank and credit card processing statements for the past 3 months, No Collateral Required!
- Fast Approvals
Funding in Less Than 48 Hours
- Credit is NOT an issue
- Loans up to $2,000,000
- Great Customer Service!