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Need Cash Fast For Your Business? Benefit From a Cash Advance!

How a Cash Advance Works

A merchant cash advance (also called a business cash advance) is an advance of capital based on your future business receivables. They can be a good financing option for restaurants, grocery stores, and other businesses that accept a large volume of credit card payments. MCAs are available to business owners with low credit scores, and they do not require collateral or a personal guarantee.

Once you get the advance, you pay it back each day with a small fixed percentage of your daily credit card sales. Since it’s a percentage, you pay more on days that you have a lot of sales and less when sales aren’t too strong. If you have no sales on a particular day, your payments resume on the next day that you have sales. Many business owners like MCAs precisely because of this flexibility. Instead of fixed monthly payments, they can repay the loan based on the daily ups and downs of their business. There’s no fixed maturity date–you simply keep making payments every day until the advance is paid back in full.

A MCA is usually not the first choice for a merchant – even though it is often the best. Bank loan, and even payday loans are sought after, and these can cause chaos not only in your business, but also in your personal life. These loans require collateral, which you can easily lose if you cannot pay the loan back. This isn’t an issue with a MCA. No collateral and an easy payment method equates to a happy and prosperous merchant.

Even if you have bad credit, a MCA programs, such as the one offered by First American Merchant, can be a great choice. As long as your FICO score is above 450, you may be able to obtain funding. Also, funding is quick to obtain – many times, in as little as two business days! How cool is that? So, whether you need funding for new décor, new inventory, or just to catch up on the bills, look into a MCA for your business.