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Is your small business struggling to get a traditional bank loan? If yes, then Merchant Cash Advance could be the right alternative for you. You, as a business owner, can receive lump sum funds from a merchant cash advance provider upfront. And then repay the advance with a percentage of the business’s sales!
$2,500 to $500,000
3 to 36 months
1 to 7 days only
as low as 10%
A Merchant Cash Advance is an excellent alternative to traditional bank loans for small businesses. As a business owner, you can receive funds as a lump sum upfront from an MCA provider. You can subsequently repay the advance with a percentage of the business’s sales.
Please NOTE that a Merchant Cash Advance is only available for businesses that process credit or debit cards for payment. If your business doesn’t take payment through credit cards, MCA will not be available to you.
So, an MCA can be an excellent option for businesses that have high credit card sales volume, need funding quickly, and are having difficulty qualifying for a traditional loan.
Advantages of Merchant Cash Advance
Merchant Cash Advance is a great tool for small businesses that need access to capital quickly but don’t have too many options available. An MCA provider will provide an approved amount, and the business will repay the advance with a percentage of each day’s credit card sales. Interest rates on merchant cash advances are determined by a factor rate which is a multiplier of the principal advance.
The factor rate and subsequent APR is determined by the sales performance of the business applying for MCA. So, good revenue numbers can improve the chances of the applicant getting a lower factor rate. The credit requirements for merchant cash advances are very low. So, applicants with bad personal or business credit have a chance to make up for it with some impressive sales numbers.
If you need to access capital quickly, a merchant cash advance loan is a perfect tool for you. But you must be careful and ensure that it doesn’t put your business in cash flow jeopardy. Your business can use this type of financing to augment a short-term cash flow crunch. The ideal use for an MCA is to fund a short-term opportunity to generate additional ROI on a project.
To successfully leverage an MCA, you should borrow to augment some form of ROI-generating activity. You must be extremely mindful of the costs and understand them in relation to the ROI. If your business can manage to do that, a merchant cash advance could be a good option for you.
There are several merchant cash advance companies that you can approach for an MCA. Finance professionals at GConectPro can help you get approved for an MCA from the merchant cash advance company of your choice at the earliest!
with Global Connect Pro Financial