A Merchant Cash Advance (MCA) offers a business a funding advance against their company’s future sales. Typically, an MCA is available to businesses that have a consistent volume of credit and debit card sales.
MCA’s range from a few thousand dollars to over $200,000. They have a short payback period and have terms of 18 months or less. However, there are other circumstances that can be worked with to create perfect terms with your lender. Still on the fence about getting an MCA? Here are the benefits of taking a Merchant Cash Advance for your business.
When you’re approved for a Merchant Cash Advance, you see the advance pretty fast. In a little as a few business days, you can have the funds available for use. The application process is quick and easy. At First Union Lending, you don’t have to do it alone – Our Funding Specialists are ready to answer your questions and help you with your application if needed.
No Collateral Needed
You do not need to bring collateral to the table as lenders are more interested in your credit and debit card sales usage. Knowing this can take a lot of pressure off taking out a loan.
Flexible Credit Score Requirements
Credit scores are mildly considered when it comes to taking out an MCA because the lender is more interested in your sales history. If you have a history of certain credit or debit card sales over the past 12 months, you will most likely be approved for an MCA.
Easy to Qualify
Your lender is looking at what type of money they can make off your business during the repayment process. If your business has a high volume of credit card and debit card sales, you’ll likely be approved.
Flexible Payment Schedule
If your repayment structure is solely based on a percentage of your business’s daily sales, you do not have to pay back as much money when your sales are low. This is great for businesses whose cash flow fluctuates because of seasonal or business changes.
MCAs can be used for whatever you want to purchase for your business. You do not have to justify your expenses. You can utilize the funds for whatever necessary purchase, as long as it’s paid back with the factor rate.
What Else Should I Know Prior to Applying for MCAs?
Do I talk to a bank about this? Typically, you should aim to gather funding from a lending firm as the application process is quicker and the terms may be more suitable for your small business. Before applying for a Merchant Cash Advance, make sure you understand the terms and application prerequisites. Make sure you ask your lender about all the lending contracts you qualify for, it’s good to know your options and the best decision for your business.
Are You Ready to Review Your Financing Options?
If you find yourself needing to find funding for your business, First Union Lending is here to help! Get started with the process now by speaking with one of our Funding Specialists. Click here or call 863-825-5626.