Merchant Cash Advance: A Quick Funding Option for Growing Businesses

by AllFi Solutions Financing

Are you a small business owner who needs to raise capital quickly? A merchant cash advance (MCA) can be a good deal. MCA is not typically a loan. It’s a form of financing that allows your firm to sell a portion of your future sales in exchange for getting an immediate payment. In short, it’s an advance payment against your company’s future income.

In this article, we’ll understand how merchant cash advances work and determine if a merchant cash advance is right for your business.

How Merchant Cash Advances Work?

This is a fast and easy way to get a business cash advance with no need for collateral. With an MCA, a funding company gives you an upfront sum of cash in exchange for a percentage of your daily credit card sales. The finance companies review your credit card sales, bank statements, commercial sales, and other information to determine the funding amount. These reports help them evaluate sales performance to get an idea of your future sales potential.

The cash advance company repayments can be done either by deducting a percentage of your credit or debit card sales or by directly withdrawing funds from your bank account. The percentage or retrieval rate you pay may range from 5 to 20 percent of your daily sales. In fixed daily withdrawal agreement, your cash advance company withdraws a daily or weekly payments based on the estimate of your monthly revenue.

What are the Benefits of Using a Merchant Cash Advance?

Wondered what makes a merchant cash advance an appealing source of funding for growing businesses? This funding option comes with several attractive features as discussed below:

Quick Funding - MCA has a potential for quick approval and funding. This is certainly a plus point if you need money instantly to cover any unexpected business expense.
No Strong Credit is Required - When it comes to credit score, MCA lenders are more flexible. Your chances of getting qualified to depend more on your credit card sales consistency, years of establishment, and much more.
Flexible Repayments - Since payments are based on a fixed percentage of your sales, repayments are proportionate to what your business is bringing in.
Easy Application Process - You can fill the application and upload the supporting document directly online to ease the applying process.
No Collateral is Needed - Unlike others, you don’t have to put any business or personal assets on the line to obtain merchant cash advances.

Want to cover your payroll or sudden business expense? Get the merchant cash advance service in Brooklyn today!