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 such storms. Why? Because they strike suddenly and require a swift financial response which you won’t find elsewhere, except in MCAs.
Up to Speed with Merchant Cash Advances
With MCAs, your business borrows a lump sum amount in exchange for its future transactions.
In essence, a lender studies your sales records (among other credentials) and decides if you’re worth a loan—and how much to trust you with.
Finally, no collateral requests or complicated underwriting processes here! And the agreed-upon amount could be ready in as soon as 24 to 48 hours.
Paying Back Your MCA
Many MCA offers are settled depending on a business’s per-day sales. But terms could change from one lender to another.
For instance, a cash advance provider can choose to either deduct a daily percentage of a business’s credit card sales or cut off a portion of the sum of its total per-day sales.
Discuss all the details with your service provider before you settle for any deal.
Securing a Merchant Cash Advance
Most MCAs are characterized by a simple application process and quick hassle-free acceptance. They are an excellent way to avoid piles of paperwork, long waits, collateral requests and a thorough credit check.
Because of how this product works, its service providers are more lenient compared to banks and other loan providers.
Many cash advance providers will;
- Ask for four to six months of receivables or bank account statements
- Next, they will ask for some formal information, which you will probably give out in an MCA application form.
In other words, simply prove that you run a legitimate business that rakes in sales daily and you’ll almost certainly get a business cash advance.
Why it is NOT the Product for Startups
MCAs rely on a strong history of daily sales, which many startups are yet to achieve. Four to six months of consistent per-day revenue is not something you get into business and achieve tomorrow.
So this is not the product for a new business looking for a loan.