Merchant cash advance is a funding program that is made on the receivables of business credit line. Credit card receivables provide you with the cash without any tax returns and other financial certification requirements. Additionally, it is the quickest funding approach; you can get the quick funding when you need it immediately. Since the repayment is only based on your business’ future credit card sales, your credit history is not consideration in this type of business financing.
This actually is the best funding solution for business owners who need quick cash to infuse into their businesses. Here are some pointers given below to help you get a merchant cash advance.
The requirements for merchant cash advance are certain. You have to be running and managing your business for a minimum of six months. Your business should accept credit cards as a way of payment from your customers, primarily MasterCard Visa Cards. You also need to provide a minimum of $5,000 in verifiable credit card invoices with the related statements. It is also recommended; don’t try to get a cash advance for merchant until you fulfill with these requirements.
How MCA Is Better Than Traditional Funding?
- Conventional loans can be difficult to make the grade for. However the merchant cash advance is as easy as 123!
- Conventional loans normally require a personal guarantee, but the merchant cash advances don’t require personal guarantee.
- Conventional loans can be secured by personal or business resources. There is no requirement of collateral. You can name it a collateral-free loan.
- The payment of a conventional loan is not flexible. From the payment point of view, cash advance is based on your future credit card sales.
- Many conventional loans do not offer flexibility on the subject of how the funding can be used. Merchant cash advance can provide you the flexibility to use the funding wherever you deem fit.
How A Merchant Cash Advance Can Help?
Normally business owners do not need to sign a personal guarantee, and the approval process of cash advance is based on the business, not on the personal credit of a business owner. Business owners are authorized based on previous credit card processing volume and then advanced an amount to payback within one year. The approval process is normally quick, with minimum paperwork, and a couple of businesses can get the cash they require in almost five days or less.
Another great thing about merchant cash advance is the repayment process. Payments are made to the cash advance provider out of daily credit card processing batches. The payment is fixed, which means that the payment amount flexes with the business. In contrast a set fixed payment, if the business has slower season sales wise, the payment is lower.