Reputation is king. Yet Merchant Cash Advances can be confusing for many small retailers and merchants. Public opinion is torn between their business-saving and bottom-line threatening capabilities. But come to think of it; this two-sided nature is a characteristic of all loan products. So the loan type isn’t always the problem; many other factors determine whether you benefit or plunge into bad debt. The cash advance product, however, has remained a sticking point for many reasons. It has a confusing reputation The cash advance model is still unclear for many merchants It uses factor rates instead of interests Can be […]

Working capital can make or break your business. After all, you need to manage inventories, take your business to the next level, and so on. A merchant cash advance (MCA) has become an extremely popular type of business financing among merchants in recent years and plays a special role in crashed economies. This article is about MCAs and the perks they offer. Merchant Cash Advance & Its Benefits MCAs are the preferred business financing option for many merchants. Be aware that an MCA isn’t a loan: it’s a sale. You just get upfront money in exchange for the sales you’re […]

Your Business Cash Flow Contrary to what many business owners assume, a merchant cash advance is not a loan. Essentially, this financing options allows you to secure immediate cash in exchange for your business’ future credit card sales receipts. You are selling the revenue of your future credit card sales to secure an immediate payment for your business working capital needs. Many seasonal businesses and those that experience cyclical sales turn to merchant cash advances. Business types and industries that are considered high risk also turn to this financing option; merchant cash advances are often offered by high risk specialists […]

Business Interruption and COVID-19 With stores shutting down to control spread and stocks plummeting at alarming rates, it’s hard to ignore the economic repercussions of COVID-19. No wonder on March 2, 2020, the Federal Reserve announced a 50 basis-points reduction in Federal Funds interest rates—the largest rate-cut it has made since 2008. The recent decrease places interest rates somewhere between 1.0 percent and 1.25 percent. But while that desperate move may try to hold the fort for America’s economy amid the Coronavirus crisis, citizens and businesses are still victims in many ways. “A broken Supply Chain.” Q1 of 2020 has […]

Your business is not broke, neither are you! The problem for many merchants is that the need for money is often out of sync with the availability of funds. And that could happen for a couple of reasons— even your own mistakes. But no one is perfect (except in CVs and Resumes, where almost everyone shines). Such hiccups happens even to the most careful business owners. The difference, often, is that while one retailer is prepared to act fast and thoughtfully, others don’t even know where to start. A Merchant cash advance is so far the best way to weather […]

Access the Business Funding you need There has been a surge of small business loan options like never before. Online applications and the technology that support them have facilitated and streamlined the process, making it easier to investigate your options and applying for a loan. The best online lenders in the industry approach small business lending entirely different from a traditional bank or credit union. By utilizing today’s innovative technology and evaluating features that make a healthy business, lenders are equipped to make credit decisions instantly and provide much-needed capital for businesses. This is done in a matter of days […]

The rise of alternative lenders has made it so much easier for small business owners like you to obtain the necessary working capital. This article is about merchant funding, specifically, a merchant cash advance (MCA) and where you can get it without challenges. Merchant Funding: Merchant Cash Advance (MCA) What’s the concept behind an MCA? It’s simple. The provider advances you funds that you’ll need to pay back over time based on your business sales. Importantly, an MCA isn’t a loan: it’s just a sale. Namely, you get an opportunity to effectively pre-sell your future debit/credit card sales at a […]

The last 5 years have brought a 20% annual growth for the merchant cash advance (MCA) industry. Some companies go for merchant cash advances, while others choose invoice factoring. This article will draw a parallel between these 2 types of business financing. So, let’s go. Merchant Cash Advances A merchant cash advance (MCA) is also called a business cash advance. This is an alternative business financing option that’s not a loan. With an MCA, you get a lump sum of money in exchange for a certain amount of the future credit card sales of your business. You must pay back […]

Life happens, and sometimes you need emergency funding to tackle obstacles that may fall on your plate. The best option is to have money saved up for these rainy days, but that isn’t always possible. A situation where a machine that’s imperative to your business needs to be repaired or replaced can set you back hundreds, if not thousands, of dollars.  If your back is against the wall and you need emergency money fast, a merchant cash advance might be an option to look into. However, there are some important conditions to consider before opting for one. What Is a […]

Small and medium business owners love merchant cash advances because of their fast and hassle-free disbursement. However, this is one of the cases of a deal too good; which is why you should think twice before you use this form of financing. MCAs are said to have triple-digit APRs or annual percentage rates that makes their total cost quite expensive.  These steep rates paired with their per-day settlement pattern are a recipe for cash-flow crisis. The worst MCA plans lead merchants into an endless debt cycle where the debt is literally unmanageable and they have no option but to refinance […]