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Merchant Cash Advance Blog Posts

By First American Merchant

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Loan-to-Own an Option When Defaulting on a Merchant Cash Advance Loan

For years, a merchant cash advance was reserved for business that earned its profits mostly from credit and debit card transactions. When more businesses became more unqualified for loans following the fallout of the Great Recession during the late-2000s, other businesses that didn’t rely heavily on sales that were paid for with plastic began taking advantage of merchant cash advances. Many small businesses, especially, turned to merchant cash advance loan, sometimes taking on three-digit interest rates. With rates so high, it was no surprise when merchants began defaulting on merchant cash advance loans. But, what happens when you can no […]

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Where to Find the Best Deal on a Merchant Cash Advance

Your small business needs cash – and fast. After doing some research, you are leaning towards a merchant cash advance, but are not sure of all the ins and outs of this business funding option. If you would like to learn more, the following information will help you. How does a Merchant Cash Advance Work? Contrary to popular belief, a merchant cash advance is not a loan; it is a purchase. Essentially, the provider is purchasing your future sales at a discount in exchange for quick cash. A merchant cash advance allows your business to secure cash quickly and easily […]

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Merchant Cash Advance Or A Business Loan?

Business loans and Merchant cash advances are the two primary commercial financing options assisting micro-businesses with working capital today. And while each of them can be a great way to obtain business funding, the two products have very different structures. To help you draw the line between cash advances and small business loans, here’s an in-depth comparison of the two. The Fundamental Differences Business Loan – just like you would seek funds for a new automobile or home, there are also loans meant for business. They usually have fixed repayment terms (say monthly installments) and pre-determined interest rates. A Merchant […]

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Is an MCA a good Funding Option for Your Business?

Sometimes following trends may incur you avoidable expenses. For example; the sudden increase in the number of companies applying (and qualifying) for merchant cash advances may push you into making rush borrowing decisions you might later regret. These quick cash options are known to cost merchants dearly if not well scrutinized during selection. Merchant Cash Advances, for instance, carry triple-digit annual percentage rates (APRs) — which is the gross cost of a loan, plus all fees. These added charges along with the daily repayment schedule often affect cash flow. And in worst cases, you may end up in a debt […]

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How to Secure a Cash Advance for Your Business, Regardless of Credit Score

Bad credit is a huge red flag for traditional lenders. In their eyes, a bad credit score implies that you have not managed your finances wisely in the past. Ten years ago, having less-than-stellar credit would have made it completely impossible to secure business funding. Today, thanks to the ever-growing online lending industry, there are more options than ever before for bad credit business loans. The Search for Business Funding If you have bad credit and your searching for small business funding, you should know that getting financing from a bank will simply not be an option. While financial institutions […]

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When Is a Merchant Cash Advance the Best Choice?

Taking a small business to the next level isn’t easy at all. No matter how experienced you are, you have to overcome several challenges on your way so to be able to grow and expand your business. Access to working capital such as a cash advance is one of the most important things in this regard. This article will tell you when a Merchant Cash Advance (MCA) can be the right option for you to choose. What Is a Merchant Cash Advance (MCA)? An MCA isn’t a loan as many think. In fact, an MCA is simply a sale. The […]

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Merchant Cash Advance: What Is It and When Should Your Small Business Use One?

Since the Great Recession, it has been extremely difficult for small business owners and business startups to find traditional lenders willing to work with them. This has made it very challenging for businesses fund growth, and for entrepreneurs to turn their business idea into a reality. Over the last few years, the merchant cash advance (MCA) has become a go-to alternative business funding option – and continues to gain popularity. What is a merchant cash advance? Contrary to popular belief, a merchant cash advance – also known as a business cash advance – is not a loan. It is a […]

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Choosing a Merchant Cash Advance Over a Business Loan

As of 2016, there were 28.8 million small businesses in the US, which represented 99.7% of US businesses. Only about 24.1% of small business loans were approved by big banks, and smaller banks approved about 48.9%. Alternative lenders approved 58.2% of loan requests. In less than 20 years, the merchant cash advance (MCA) industry has gone from $0 to $10.7 billion by 2015, and is expected to account for $15.3 billion in 2017. Are you faced with the problem of whether you should take out a business loan or a merchant cash advance? Below you can find some important information […]

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Get a Merchant Cash Advance Without Being Scammed

A merchant cash advance can be described as purchases of future credit card sales receivables or short-term business loans. The demand for merchant cash advances (MCAs) is growing with rapid advances. The MCA industry came into existence as one of the most important sources for non-bank loans for many small businesses. Today, you can find many online funders that offer cash advances to small businesses that wouldn’t have historically been approved for a business loan from a traditional bank. It’s important to note that the industry is largely unregulated, so you shouldn’t trust all the companies offering a merchant cash […]

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Having Problems Closing Cash Advance Deals Because of Declines?

Merchant cash advance (MCA), a highly popular alternative to traditional business funding, is a form of online lending. Much of the selling of MCAs happens offline by brokers who call and visit clients. Merchant cash advance lenders aren’t the only ones who choose to work with brokers to connect with customers. Financing companies offering short-term small-business loans rely on the same independent broker networks as well. Merchant Cash Advance There’s a popular belief that a merchant cash advance is a short-term loan or a high-interest advance. In fact, it’s not true: an MCA is simply a sale or a purchase […]

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