How do merchant cash advances work?
So, let’s paint an ideal picture here, you are a business and your sales are mostly on debit or credit cards. Now, a merchant cash advance – not technically being a loan – is simply an amount of cash given to you by a financing company in exchange for a certain percentage of your sales, in addition to a simple fee. It is a hassle-free way for short-term financing for no collateral, even if you have a bad credit score.
On one hand, MCAs are great when you require a fast-small business loan, suitable for a multitude of business purposes with fairly easy approval rates especially when your credit score is not so good. But on the other, Merchant Cash Advances do come with a higher fee, less freedom to change merchants, and a regular charge on your credit card receipts.
Also, if you have a limited business history, bad credit score, and/or most of your sales are transacted on credit/debit cards, a Merchant Cash Advance is a fitting solution to your financial shortcomings.
From innovative online alternative lending to SBA and Business term loans, Capital for Business provides you easy financial fixes to realize your dreams. Our Merchant Cash Advance funding option gives you the flexibility to work around your business’ organic cash flow. If you have been processing credit cards for a minimum of 60 days and process at least $5,000 in credit card sales per month, you can easily utilize our Merchant Cash Advance service and have access to business capital which is just as fast as it is conveniently efficient.