Every Business Is Different…Some Need A Cash Advance
Sometimes, a business has an unplanned situation that occurs and requires immediate finance. When this happens, small business owners need to know how to get the money needed to handle the situation as it unfolds. In these circumstances we can provide you with a free rate & term quote, then you can decide how to proceed. Apply in minutes and get real results or learn more.
Definition Of Merchant Cash Advance
A merchant cash advance allows a business owner who accepts credit card payments or has other payment or receivables streams to obtain an advance of the funds regularly flowing through the business’ merchant account. A merchant cash advance (MCA) is not a loan, but rather an advance based upon the future revenues or credit card sales of a business. A small business can apply for a MCA and have an advance deposited into its account fairly quickly. We have helped companies secure emergency funds within 12 (business) hours.
Merchant cash advance providers evaluate risk and weight credit criteria differently than a traditional banker might. A MCA provider looks at the daily receivables or credit card receipts to determine if the business can pay back the advance in a timely manner. Basically, the small business is selling a portion of future revenues or credit card sales to acquire capital immediately.
Rates on a merchant cash advance are typically higher than other small business loan options. A MCA provider will often approve an advance for a business that might not qualify for a business loan but has a steady influx of credit card payments. Any business owner considering this option should make sure he or she understands the terms being offered so they can make an informed decision about potential ROI.