For many, the merchant cash advance is surrounded by questions a reputation for high fees – a business’ last option. But experts are saying it is time for businesses and lenders to take another look at the merchant cash advance. It might be more helpful than was previously believed. The Lending World Has Changed “The merchant cash industry first started as a product for unbankable clients,” explained Andrew Mallinger, COO of PIRS Capital, in a recent interview with PYMNTS. “It was for restaurants that didn’t have collateral or the credit score to apply for a bank loan.” However, the rise […]

Startups need capital to expand, but getting funds isn’t very easy for a starting business. Fortunately, today enterprises have the alternative of acquiring capital through financing firms like firstamericanmerchant.com. One product we gladly offer is the merchant cash advance. An MCA is technically a business loan, but more of an advance. The lender uses your oncoming future credit card sales as an asset. Therefore, you simply get an advance amount which you pay back as a portion of your firm’s day-to-day credit card revenue. So there are no collateral requirements for this loan because already a percentage of your debit/credit […]

Let’s face it! Your chances of staying in business are slim if you can’t manage stable cash flow. In fact, a U.S. Bank study reported that over 80 percent of micro-businesses fail for the same reason. And many would conquer with these findings: because if a firm lacks enough working capital to hold up routine operations, then it is destined for closure. But again, you don’t want to “hoard” working capital as that may slow down your growth. You need to balance your cash flow such that enough funds are allocated to help seize expansion opportunities, and the rest kept […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]