Also referred to as a credit card processing loan, a merchant cash advance is a go for option both low and high-risk merchants who need quick and hassle-free access to funds. This article will tell you more about an MCA and where you can get it easily.
What You Need to Know About a Merchant Cash Advance
An MCA also called a business cash advance, is a type of funding suitable for a small business accepting debit and credit card payments from customers. You’ll need to pay back the amount based on a percentage of your customers’ card payments using a card terminal.
- The MCA provider will calculate the risks associated with your business to calculate how much your business needs to pay back (payback amount). You’ll be assigned a “factor rate,” multiplied by the amount you’ll borrow.
- An MCA is ideal for those merchants who need quick access to additional working capital to make their business more competitive and functional. After all, not all merchants can qualify for a traditional bank loan.
- It’s critical to apply to a trustworthy provider of a merchant cash advance such as FirstAmericanMerchant.com. FAM is a reputable alternative online lender specializing in the high-risk field. FAM carries an A+ rating with the BBB and is dedicated to offering the lowest possible costs for a cash advance.
- You can get $5,000 to $200,000 in and then pay back the loan over months or, sometimes, up to two years by making daily or weekly payments.
- An MCA provides quicker financing as compared to other business funding solutions. It’s almost instantaneous.
- Even if you’re a new business or operate in a high-risk space, you can be eligible for an MCA.
- The holdback associated with an MCA is an agreed-upon percentage of the daily credit card receipts withheld to make the MCA payments.
Is Cash Advance for Your Business?
If you’ve decided to apply for an MCA, you’ll receive a one-time lump sum of cash in exchange for a percentage of your business’s future credit and debit card sales. To get reliable and low-cost MCA, work with a reputable provider such as an alternative online lender in the field.