The post Paycheck Protection Program (PPP) world isn’t easy in terms of small business funding. Luckily, PPP isn’t the only option for business financing. You can also apply for alternative funding options such as a merchant cash advance (MCA). Let’s dive deeper into the topic.
Post Paycheck Protection Program World
Not all merchants find the Paycheck Protection Program or PPP the best fit for their business. There were businesses that weren’t eligible for the program. Others didn’t apply for it. The third ones are working on Q3 and Q4 financing. By the way, PPP loans put merchants into limits concerning the way the funds can be used.
The COVID-19 virus put the world into a situation where merchants shouldn’t anticipate much success with acquiring a new line of credit. Thus, it’s extremely important to obtain lower cost funding for your business, which can save your business thousands.
Lower cost funding options can be easy to obtain if you turn to a reliable alternative online lender like First American Merchant. FAM is an award-winning business financing provider and merchant processor in the high risk field. You can obtain FAM’s popular merchant cash advance quickly and without major challenges.
Merchant Cash Advance Post PPP
An MCA is also known as a business cash advance. In reality, MCAs aren’t a loan: they’re just a sale. Namely, you receive an advance based on the volume and value of your expected credit card transactions.
The majority of MCA providers debit funds from your daily credit card transactions for the MCA repayment. An MCA is ideal for those who need quick access to working capital. Be aware that MCA providers and traditional lenders assess credit risk not in the same way.
MCA providers are more interested in the daily volume of your credit card transactions when figuring out if you have enough resources to make the periodic payments. Be aware that MCAs come with higher interest rates. If you have lots of credit card transactions every day, an MCA could be a go-for option for you.
As you see, the post PPP world has its specifics to take into account. PPP isn’t the only financing option to apply for when in need of additional working capital. Consider turning to an alternative lender for an MCA.