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Merchant Cash Advance: What a Beginner Should Know

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 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.