The merchant cash advance (MCA) industry has been growing with rapid advances recently. An MCA is a business loan alternative that’s turning into one of the most popular forms of financing for small business owners. Today, many business owners apply to get a business cash advance instead of a traditional business loan. That’s why MCA providers have become one of the leading sources of alternative financing in the past few years.
This article will tell you about merchant cash advances and how you can obtain an MCA easily, affordably, and fast.
A Merchant Cash Advance: What Is It?
Historically, a merchant cash advance has been for businesses with revenue coming mainly from credit/debit card sales. These include restaurants or retail shops, and more. Today, businesses that don’t depend heavily on credit/debit card sales apply for an MCA as well.
You must have heard that merchant cash advances have a relatively higher cost. In fact, this is something that’s justified. Banks take minimal risks, which can’t be said about merchant advance providers. Banks require collateral and personal guarantees, unlike merchant cash advance providers. On the other hand, cash advances are ideal if you need to get access to working capital quickly.
A merchant cash advance can be described as a transaction between your business and an MCA provider. Merchant cash advances offer more flexibility as compared to other business financing options when it comes to how the debt is repaid.
You’ll have a fixed percentage payment schedule that ensures that it’s only the agreed percentage of the daily credit sales that’s transmitted to the merchant vendor. The repayment of a merchant advance is based on the proportion to how much your business earns. The MCA provider is purchasing your future sales at a discount. Both you and the provider agree to the amount of sales being purchased and for what discounted cost.
This is precisely what makes an MCA different from a loan. So, an MCA isn’t a short term loan, or a high interest advance. It’s just a sale.
Get a Business Cash Advance From FAM
To quickly and easily get approved for a merchant cash advance, you should turn to a reputable alternative online lender like FirstAmericanMerchant.com. First American Merchant boasts an A+ rating with the BBB and offers exceptional business funding solutions to merchants of any type and size. To get a business cash advance from FAM, you just need to fill in a quick application form and provide the minimum of paperwork.
FAM’s Popular Cash Advance Offers the Following Advantages:
- Credit scores below 500 approved
- Receive your funds 72 hours from application
- Simple, flexible programs
- No tax returns or financials
FAM’s Cash Advance Provides the Following Benefits:
- High Approval Rates
You’ll be approved based on your business performance rather and not on your personal credit, time in business or financials.
- Fast Funding and Easy Renewals
You can have your funds in your bank in as little as 72 hours. As soon as you get your approval, you can renew your advance when you pay off 50% of your balance.
- Simple Payback
You won’t be obliged to write a check each month. Your payments will automatically be taken from your credit card transactions. You won’t have to pay a fixed monthly payment.
- Collections Based on Your Revenue
The MCA provider will get paid when you get paid. The provider’s payment makes up a percentage of your daily sales. So, if you have fewer sales, you’ll pay back less. If you have more sales, you’ll pay back more. Thanks to such flexible structure, you’ll always be able to make your payments.
- No Credit or Collateral on the Line
MCAs aren’t reported on credit reports. You won’t be required to have collateral, which is more typical of business loans.
A merchant cash advance has great benefits that you can enjoy if you need quick access to working capital. This is the case when benefits outweigh the cost. Turning to a respectable MCA provider, you can get your funds quickly and without any difficulty.