Sitting at your desk with your plans laid out before you, there are likely many tasks and challenges written down on our to-do list. One of the biggest obstacles all startups face is coming up with adequate capital. From putting a team together and renting a location to purchasing inventory, setting up shop, and covering revenue-generating initiatives requires cash and lots of it. 

Even established businesses run into cash flow issues from time to time. High-volume seasons like the holidays can cause a company to come up short. Equipment breaking down can lead to dipping into cash flow reserves, leaving little left for a rainy day. Unexpected shifts in the economy can make it difficult for customers to pay on time, creating a cash flow gap that makes it difficult for your business to pay its bills.

Thankfully, there is a financing option that is available in times such as these. One that small businesses owners with lower credit scores or no assets for collateral can qualify for. Even business types considered “risky” by traditional lenders can find cash relief. The best part, obtaining cash is fast, easy, and affordable. This solution is called a merchant cash advance (MCA), also known as a business cash advance. 

What is a Merchant Cash Advance?

Essentially, a merchant cash advance allows businesses to secure a lump sum payment in exchange for an agreed-upon portion of their future credit and debit card sales. Your business agrees to give the lender a portion of its sales until the loan has been repaid. This amount is flexible, allowing your business to pay back more during strong business months and less when you hit a slow season.

Qualifying for a Merchant Cash Advance

The merchant cash advance application is known for being quick and straightforward. Most lenders today allow you to quickly apply entirely online. Simply upload all the necessary supporting documentation through the website and receive an answer in just a few hours. In fact, with some merchant cash advance lenders, you can receive approval and your funds in as little as 24 hours.

Merchant Cash Advance Application – What to Expect 

Of course, every merchant cash advance lender will have their own set of requirements and questions, but most will ask for the following information when you apply:

  • Loan amount
  • Company name
  • SSN/SIN
  • Company contact information, including address, number, and email
  • Monthly credit card volume
  • Tax ID for your business

Is an MCA Right for Your Startup?

Do you need capital to boost cash flow and cover startup costs? Do you lack the collateral and business history traditional lenders want to see? Are you struggling with a poor credit score? Do you need speedy approval and release of funds? If any or all of these situations sound like yours, then a merchant cash advance could be the right fit for you. 

The key is to make sure you’re partnering with a lender that offers industry-leading services and support – one that knows the challenges you face. This ensures you receive the amount you need to meet the challenges and goals that lie ahead, with terms that set your business up for success.

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