What if you can’t get access to a traditional loan or are looking for an alternative source of business funding? The reasons can be different. One of them has to do with the high risk nature of businesses. Thankfully, there are alternative options like merchant cash advances (MCAs) that you can apply for.
Merchant Cash Advances or Business Cash Advances
A merchant cash advance is also called a business cash advance or cash advance. MCAs appeared during the 1990s, and businesses in the space were the first companies in the field of alternative financing. Did you know that an MCA isn’t a loan?
An MCA is a purchase of your future credit card receivables. So, you’re being advanced a lump sum based on your future sales at a discount. The repayment is flexible. These are the main differences between this type of financing and a traditional loan. An MCA is a go-for option for businesses that receive credit card payments.
More specifically, an MCA is a fine option for businesses with a steady volume of credit card sales, including retail stores, restaurants, and medical offices. Moreover, this is excellent for those in need of fast funding, and the provider will charge you through the portion of your future credit card sales on a daily basis.
MCAs From First American Merchant
When applying for merchant cash advances, make sure to turn to a reliable provider like First American Merchant because you can come across many companies offering an MCA these days. FAM is an expert in the high risk field and has already helped thousands of hard-to-approve merchants obtain the funds they need. The offered rates are among the cheapest.
Let’s see what First American Merchant, which is an A+ company by the BBB, offers in comparison with loans:
Loans for Your Small Business
- Strict credit requirements
- Must wait longer to get access to the funds
- Complicated contracts
- Lots of paperwork
MCA from FAM
- With a credit score below 500, you can still be eligible
- Access to the funds 72 hours from application
- Hassle-free and flexible programs
- No need to provide tax returns or financials
Benefits of a Cash Advance
- High approval rate
- Fast and easy access to your funds
- Easy renewals
- Hassle-free repayment
- Collections based on your revenue
- The Provider doesn’t rely on your credit or collateral
As you see, a merchant cash advance is an advanced lump sum that you get from an MCA provider and will be required to pay it back based on your future credit card sales. An MCA isn’t a loan: it’s just a sale. Make sure you’re working with a respectable provider.