A merchant cash advance permits a merchant who accepts payments through credit cards or has extra receivables or payment streams to acquire an advance of the finances that flow through their merchant’s account.

Most people mistake MCAs for loans, however, a Merchant Cash Advance is usually based upon a company’s future credit card sales or revenue. Any small business can easily apply for a cash advance to enjoy quick advance deposits into their account.

Most Advance Cash providers have different criteria for risk evaluation and assessing credit that differs from what traditional banks offer. At First American Merchant we look at the day to day credit card receipts or receivables to establish if a business can settle the advance within the agreed span. On the whole, it’s like the small business is selling part of its future credit card sales or revenues to acquire immediate funding.

The rates on an MCA are relatively higher compared to other small business loans, at times even higher than the triple digit yearly interest rates. In most cases, a cash advance provider will consent an advance for a small business that may not meet the requirements for a business loan, but shows a stable influx of payments via credit cards. Any merchant looking forward for an advance should make sure they understand the terms and conditions a provider offers to make a well-versed decision about the potential return on investment.

Why you should consider a Merchant Cash Advance

It’s a fast and easy way to acquire funding and make renewals. After approval, advances will be deposited to your account within 72hours. Also, if you wish, you can make a renewal after paying down 50% of the advance.

High Approval Rate: You have a high chance of qualifying if your business is performing well; providers care less about your personal credit, duration in business or financials.

Simple Payback: You won’t need to write checks every month, payments are automatically held by the provider from your transactions you conduct through credit cards. No need to worry about fixed monthly payments.

Collections are based on Revenue: The provider only receives payment when you get paid, that is, a percentage of your daily credit card sales, so if it’s a tough month you are repaying less, and if business is good, you get to pay back more.

Securing a Merchant Cash Advance is a fast and simple way to receive quick funding to help improve your business, buy inventory or for any other reasons. It is also the remedy for merchants who fail to secure other types of loans due to bad credit or lack of collateral.

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