When Small Business needs financial help, it is the Merchant Cash Advance which comes and provides necessary funding and that too in a record shortest possible time. This means Merchant Cash Advance (MCA) is always at your service—Small Businesses.
The most popular of all the financial institutions lending money to businesses in financial troubles is the Merchant Cash Advance, the reason behind this popularity is the time MCA takes to sanction the loan, (that is less than 3 days) and the number of options it provides you to utilize the loan. It really comes to the rescue of Small Business in financial troubles. This helps the small businesses to prosper and improve their business activities in the long run.
In the prevailing economic environments no businessmen can afford to tolerate the tough and strict restriction laid by the banks and some other financial institutions for obtaining loans. The banks are also known for taking long time,( over 90 days) to sanction the amounts, in most cases the amount sanctioned is far less than the amount demanded by the entrepreneur.
Merchant Cash Advance is a process based on future likely income of the borrower. The businessmen qualify for the loan based on two factors, firstly the financial bank statements of last few months and secondly the credit card history of the business. The credit score dictates the maximum amount that can be sanctioned, bad credit score has no bearing on the sanctioning of the loan. The pay back of the loan is based on the mutually agreed percentage of receivables (Through Master and Visa Credit Cards) of future sales/ income of the business.
This is an unimaginable facility for the businessmen. There is no tension of fixed monthly installments; there is no worry of any time period. More the income earned by the business in a particular month, higher the amount of installment, less the income less the payback. So the sale and the income decide when the loan will be paid back in full.
The payback can be also be worked out on daily basis, working on the same system. The businessmen are at ease and can concentrate free of worries on other important issues related to the business. The credit card Scratch Machines plays an important role in the process. The lender simply informs the credit card company the percentage of credit card sales to be transferred to him on daily or monthly basis, the amount is automatically remitted in the lender’s account, a facility that safeguards his cash given by the lender.
The majority of businessmen who are enjoying the facilities of Merchant Cash Advance are the one who were denied the loan by the banks for not meeting their prerequisites laid down to qualify for the advance, such as bad credit history, type of business, not having a collateral to offer and other requirements.
Merchant Cash Advance does not lay any such conditions or prerequisites on the loan seekers. In the contrary they tend to provide the required cash in as less time as possible provided the nominal paper work is complete.