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The Top 5 Things You Should Know About a Merchant Cash Advance

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There is some confusion for business owners over what path to take when it comes to the different options in receiving working capital. Most business owners assume they have to receive lending through a bank. While this is a common solution for some, some do not have the necessary requirements to receive such help; nor do they have the time to wait for how long some loan paperwork takes to be processed.

A lot of business owners do not fully understand what a Merchant Cash Advance is and how it can benefit them. According to, “Flexibility is a keystone for any good business. Having the ability to react to changes, needs, and opportunities is vital to raising your bottom line and maximizing your potential. Tweaking the revenue cycle can only do so much on short notice. Access to liquid assets can be a game changer for any business.”

In order to fully understand what a Merchant Cash Advance is, there are five things you should know:

1.      A Merchant Cash Advance is not a loan. After reviewing your recent merchant and/or bank statements, the company will make you an offer; this amount is an advance against your future debit card receivables and/or credit. For example, if they offer you $20,000, they will receive $25,000 automatically out of your future receipts; thus, you will have to closely examine the amount of interest that will be included in this agreement and be sure that you can handle the monthly and long term commitment involved.

 2.      The benefit of an MCA is that there is no collateral required from your end. Unlike loans from the bank, MCAs do not require you to have collateral. For small business owners that are just getting started, this is definitely a bonus. According to, what you need to qualify is a “copy of your driver’s license, a copy of a voided check or bank letter, a copy of your lease and landlord contact information, 3 months worth of bank statements for your business, and 3 months of credit card processing statements.”

 3.      The money is deposited in 7-10 days. The process involved in getting an MCA started for your business will take much less time than trying to get through the paperwork of receiving a loan from the bank. When things go wrong, a loan from the bank-if you can get one-may come all too late. In a blog by AmeriMerchant, the company describes the process as follows, “Once approved, we work fast to get the money in your account in days. We understand that having the money ASAP is crucial for you and we can do just that. You don’t want to be waiting around for money and we’ll make sure you don’t.”

4.      Another huge benefit is that there is no fixed monthly payment. According to, the payback works with the amount you see in your monthly sales and cash flow; this will definitely help the small business owner that experiences unexpected slow months. In such a situation, the pressure is eased considerably since you do not have to experience the stress of knowing the payment is fixed.

 5.      You can be approved within a 24 hour period.  Perhaps the biggest bonus of an MCA is the ability to be approved quickly for funding. When you find yourself in a tough situation and are worried about your business and all of the individuals dependent on you, it is nice to know that you can have an answer quickly. Because the MCA market is so competitive, many companies guarantee quick approval to attract small business owners. For example, AmeriMerchant states that “When you work with other lending institutions, there’s no telling when your business will be approved for funds. But with AmeriMerchant, we can approve you for financing in hours.”


When it comes to a Merchant Cash Advance, there are many positives for a small business owner in need of working capital. Be sure to do your homework and find the company that meets your needs. Don’t allow stress to ruin the vision and mission of your business.