Are you a small business owner in need of capital now? Does a merchant cash advance (MCA) look like a good deal? What is an MCA? How can it help your business? This article will tell you about this.
What Is a Merchant Cash Advance?
Merchant Cash Advances (MCAs) date back to the 1990’s. Businesses in the MCA sector became the pioneers in the alternative lending field.
Thanks to an MCA, you obtain upfront working capital in exchange for a percentage of your future credit card sales. The advance is covered through the automatically deducted percentage (a set percentage) of your credit card sales.
In fact, MCAs have turned into an immensely popular type of business funding in recent years. Many business owners now choose an MCA over a business loan. Be aware that an MCA isn’t a traditional business loan: it’s simply a sale of future revenue.
That’s the reason why an MCA isn’t subject to the regulations imposed on traditional small business loans. Moreover, an MCA doesn’t require a personal guarantee or collateral. Strikingly, even bad credit can’t hold you back from getting approved for an MCA.
According to one of the representatives of a financial services company, an MCA can be characterized as a one-time capital infusion in the form of a lump sum into a business.
Cash Advances from First American Merchant
First American Merchant, an award-winning alternative online lender and payment processor, offers its popular cash advance with exceptional terms and rates in the industry. There’s no need to worry about whether you can stay in business because you don’t qualify for the right funding to meet your business needs.
FirstAmericanMerchant.com offers business funding to merchants of any type and size. With FAM’s MCA, you can obtain the funds you need to purchase more inventory before the holiday season or hire a new employee. You can get your approval within 3 days. Besides, you can also get easily approved for consumer financing, ACH loans, small business funding, and other forms of business financing.
Small Business Loans Offer:
- Strict credit requirements
- Long wait times for funding
- Complicated contracts
- Extensive paperwork
- FAM’s MCAs Offer:
- Credit scores below 500 approved
- Receive your funds within 72 hours from application
- Simple, flexible programs
- No tax returns or financials
- When an MCA Is the Best Option to Choose
Are you launching a new product line or lack some extra money to get a new client setup? If yes, an MCA is the best option to go for. You can get under $100.000 on the same day, in some cases. If you’re worried about fees that’re higher with an MCA, be sure they’re really worth paying.
- Top 5 Benefits of an MCA
- High approval rate
- Fast funding and easy renewals
- Simple, hassle-free payback
- Revenue-based collections
- No credit or collateral on the line
Now, let’s focus on those cases when an MCA is an ideal option to go for:
- If you’ve had strong sales but you have low or bad credit.
- If you’ve been operating your business for at least 6 months.
- If you don’t have many hard assets to provide as collateral.
- If you take in a high number of transactions each month.
- For merchants managing their cash flow. Why? Because the amount collected by the MCA provider varies month to month. Remember that the percentage collected never changes and keeps your business cash flow stable.
Work only with a respectable MCA provider and get quick access to working capital that can help you tackle your issues with ease. Get the right business funding to grow your business successfully.