The merchant cash advance business has exploded. Are you looking for business funding that can help you make significant headway? How can you and your business benefit from an MCA? Just read below to get help with all this.
An MCA Can Strengthen Your Business
An MCA, which isn’t a loan, allows you to leverage your future earnings so to access the necessary working capital conveniently. As soon as you receive your funds, you’ll start paying the amount back through a percentage of your daily credit card deposits that the lender will take.
Since this is a sales transaction and not a traditional loan, it won’t show on your credit report. By the way, though an MCA is just a sale, you’ll still hear the words “borrowers” and “lenders” used in the MCA industry.
You’ll come across merchants using cash advances to avoid a financial jam, but this isn’t the best use of this type of business financing. The best use of an MCA is to invest it in an aspect of your business that’ll account for a positive return.
Now, let’s focus on some potential benefits that an MCA can bring to you and your business:
- Acquire the necessary equipment for increased productivity and better quality of products/services.
- Buy more space and inventory, if the growth of sales supports this action.
- Start a marketing campaign with proven ROI.
- Hire more help if you have strong sales, thus getting more time to focus on making more money.
- Spend much less time on getting approved or funded as compared to traditional bank loans. You can receive amounts of up to $200.000. An MCA is engineered for speed, so the funds can reach you in as little as 24 hours.
- Although credit bureaus aren’t involved in the assessment of an MCA application, if you have poor credit, you can leverage an MCA to improve your score in more than one way, thus making your overall financial profile stronger.
- Easy approval since MCA providers pay more attention to your business’s performance and not to things like credit scores and financial histories.
- No risk to collateral or credit.
- Higher approval rates as compared to traditional business loans.
- The overall risk to the merchant is less as compared to that of a loan. The reason is that the payment is flexible, not fixed.
- Though MCAs will cost more money in terms of interest rates, they’re the best option in situations like when seasonal retailers want to stock their store with merchandise before the holidays or when businesses need to obtain some equipment to win a contract.
How to Obtain the Best Merchant Cash Advance
The vast majority of all American businesses are small businesses in fact. Small business funding is something so many merchants are interested in. MCAs are extremely popular type of business financing that’re preferred by an increasing number of business owners.
A merchant cash advance from a true business funding expert like First American Merchant allows merchants to get the capital they need more efficiently and effectively. In fact, an MCA is an important part of the modern and bright world of fintech. So, turn to a reputable alternative online lender like FAM to enjoy the cheapest and most reliable business funding solutions to grow successfully.
Well, the MCA is suitable for any type of business, both sole traders and partnerships. Merchant cash advances are useful for retailers and pubs, clubs and restaurants, entertainment venues and beauty salons, as well as all type of retail and service providers.