What is a Merchant Cash Advance?
A merchant cash advance (MCA), or a “business cash advance,” is not technically a loan—rather, it is a cash advance based on the credit card sales of a company. It is a form of alternative finance that is attractive in that businesses incur no debt in the process and have access to working capital quickly.
Though it is unorthodox, MCA’s have several upsides. The best part of an MCA is that it is readily available—a business can get funded in as little as 72 hours. MCA’s allow businesses to have access to the funds they need to cover expenses and pursue new investments. Sound right for your business?
If you’ve been in business for at least one month and have a minimum of $5,000 in credit sales, you can qualify for an MCA loan.
Advantages of MCA Financing
- Fast approval and funding
- No application or credit check fees
- No collateral required
- No check writing – payments made through automatic withdrawals
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We know how to get your business funded. If you’re not sure which funding product is best, we’ll walk you through the options.
Types of Merchant Cash Advances
ACH Merchant Cash Advance
While it sounds variant from the process we have just described, ACH Merchant Cash Advances are merely a specific type of MCA. Through this process, a business gets an advanced payment of a pre-determined amount, and the pay back will be done through Automated Clearing House (ACH). This method allows a finance company to withdraw fixed amounts directly from a bank account, and it is the most popular type of MCA.
Credit Card Merchant Cash Advance
Through the Credit Card MCA process, a business gets an advanced payment of a pre-determined amount and then pays the lender a percentage its daily credit card sales in return. The credit card processing company sends the percentage directly to the financing company.
Lockbox Agreement Merchant Cash Advance
The final type of MCA is a Lockbox Agreement. In a Lockbox agreement, daily credit/debit card sales are deposited into a lockbox account. The finance company will then take out their percentages from the account directly and the remaining amount will be sent to the business via electronic transfer.
How Do Merchant Cash Advance Companies Grow Businesses?
Merchant cash advance companies grow businesses by advancing a sum of money with generous terms of repayment. This allows your business to take care of needed expenses, finish payments on overhead costs and strike new business deals. Many MCA companies will not charge proposal fees, processing fees, application fees, or any type of hidden fees.
MCA’s differ greatly from small business loans. Loans can take weeks to get finalized or even longer depending on underwriting. MCAs are fast and get you the money your business needs for staffing, inventory, repairs or whatever else your business needs. Whether you run a small outfit, a large company or are just a startup, we can hook you up with a stronger cash flow.
Use Merchant Cash Advance Financing to Grow Your Business
- Purchase new equipment
- Tackle maintenance and repairs
- Branch out into new markets
- Cover payroll and hire new employees
- Keep inventory stocked
- Cover unexpected expenses
- Expand marketing efforts
MCA Companies Approve Small Businesses
It is typically very difficult for small businesses to access cash from banks. That’s where we come in. We have many strong partnerships with MCA companies that understand the inner workings of small businesses. MCA finance companies understand the potential that small businesses hold and that, often times, the only thing standing between a small business and expansion is an absence of working capital.
Nearly any industry/organization can qualify for an MCA. If your business has poor credit, don’t worry. We can still get your partnered with a finance company. The real deciding factor is how much your company is billing a month—that will determine the size of your advancement.
Slow paying clients can be tough on a business. A MCA will allow you to keep your credit terms with your customers while receiving the money you need to pay for business expenses.
We understand that when a business needs money, they don’t have time to wait. That’s why we move fast. When you call us, we transfer you immediately to a MCA company and start on the approval process that day.
Our Financial Marketplace Works Hard For Your Business
Your business will never have to take the time to search for a MCA company. We have the answer for you right here. We take the time to learn the ins and outs of your business. We want to know everything! We will make sure that a MCA is the right for your business. If it isn’t, we have many other financial options that may be available to your business. If we do feel that an MCA is the right path, we will partner you with the best MCA company that understands your industry and niche. We will work hard to get you lowest rates and term flexibility. If you would like to try another option, come back to us. The possibilities are endless.
Business Cash Advances are Incomparable
Banks can be harsh. They look deep into your credit score, assets, and financial history. Banks also like to see companies who have been in business for a long period of time. We know that your small business is more than just numbers, that’s why we partner with dedicated business cash advance companies to get you funded. Companies can even get funded with as little as four months of business. The MCA application is fast. Instead of waiting weeks to get approved from a bank, a merchant cash advance company will be able to approve you in 3-5 days.
