Merchant Cash Advance (MCA), also known as Credit Card Receivable Funding, allows the borrowers to get cash in exchange for the purchase of a fixed percentage of their future Visa & MasterCard receipts. We offer Merchant Cash Advance so that you can wave goodbye to financial difficulties.
Some lenders consider Merchant Cash Advance a bit unsettling due to its inflexible payment terms, short terms, and higher interest & APR rates. Apply for a Merchant Cash Advance when you have exhausted every other funding option.
We are here to tell you how Merchant Cash Advance works, its eligibility criteria, pros & cons, and why a Merchant Cash Advance is the best funding option!
Just stick with us!
Merchant Cash Advance Qualification
Want to check your eligibility for a merchant cash advance? If your business has a low credit score, limited business history, and no collateral, then Merchant Cash Advance is the best funding solution for your business.
Merchant Cash Advance has laid-back eligibility criteria; so that more business owners can benefit from the resources.
For businesses earning profit from credit card payments, Merchant Cash Advance is the safest bet. And if you run a restaurant business or retail store, using a merchant cash advance as a short-term financing tool can help you in working capital, technology upgrades, equipment purchases, unforeseen expenses, and much more.
You can use a
MERCHANT CASH ADVANCE
in multiple ways
- Inventory Purchases
- Marketing & Advertising
- Technology Upgrade
- Equipment Purchases
- Business Renovation
- Business Expansion
Perks of a Merchant Cash Advance
• A cash advance up to $500,000
• Get approved on the same day
• Cash in just 24 hours
• Factor Fee 1.15 - 1.20
• No collateral or personal guarantee required
• Automated payments through your merchant account
• No fixed monthly payments
• No upfront costs or hidden fees
Eligibility Criteria for a Merchant Cash Advance
• You have been running your current business for at least (6) months.
• Your business accepts Visa and MasterCard.
• You process a minimum of $5,000 per month in Visa and MasterCard receipts.
• You can provide 4 Months' credit card statement.
• You can provide 12 months of credit card processing statements (if your business is seasonal).
• You are not a startup merchant.
How Do You Know A Merchant Cash Advance Is Right For Your Business?
A merchant cash advance is right for your business when you need fast working capital. Have adequate cash flowing through your merchant account to pay for the advance.
This alternative funding solution is best for businesses that do a great deal of monthly credit card transactions but have a low credit score. In addition to this, the qualification criteria for a merchant cash advance is usually simpler than a typical small business loan.
How to apply for a Merchant Cash Advance?
The approval time of the MCA varies from lender to lender – from an hour to a few days. Once approved, cash will be deposited into the business checking account, giving immediate access to needed funds.
We acknowledge the importance of your time and ease, so the application of Merchant Cash Advance is not as complex as of a bank loan. Although we do have some minor requirements:
- For starters, fill out an online application by providing business information: social security number and business tax ID along with a couple of other details.
- After giving substantial information, provide a few months’ credit card statements or processing statements along with bank statements.
- The approval process for a merchant cash advance could be as quick as 24 hours.
- If you are thinking about applying for a Merchant Cash Advance, you might need to change your credit card processor, it being the essential part of the approval process for many MCA lenders.
- Acknowledge the funding details carefully. If you get approved for $15,000 and required to pay $18,000, your merchant account will be debited 15% daily until the entire $18,000 is reimbursed.
- After approval, the cash gets deposited into a small business bank account. Repayment starts afterward.
Get Merchant Cash Advance Funding
Smart & Simple terms of Merchant Advisors ensure the growth of your Business.
Average monthly credit card sales or overall sales volume determines your eligibility.
Receive your cash within 72 hours.
We deduct a small percentage of your daily credit sales until you pay the cash advance in full.
Faster and easier access to money.
How Does A Merchant Cash Advance Works?
Receive upfront cash in exchange for the purchase of a small portion of your future Visa and MasterCard receipts through Merchant Cash Advance. MCA allows you to make daily or weekly payments, instead of making a fixed monthly payment over a set repayment duration.
At Merchant Advisors, our goal is to work with you side by side so that we can understand your needs and propose the best financial solution. If you don’t qualify for a loan or are running out of time, a Merchant Cash Advance might be the best fit for your business.
Factor Rates For a Merchant Cash Advance
The Merchant Cash Advance fee has a factor rate rather than an interest rate. The factoring fee usually ranges from 1.15 to 1.45. Multiply your loan amount with the factor rate, and you will get the total amount you owe the lender. The factor rate often starts at 16% when changed to APR and can extend to triple digits.
The Repayment Term Of A Merchant Cash Advance
On average, it takes 8 to 12 months to pay off a Merchant Cash Advance. The repayment term varies from 4 to 18 months, depending on the nature of the business. If you pay a higher fixed percentage of your credit card sales to the lender, your repayment time will be shorter with more compact cash flow.
Pros and Cons of a Merchant Cash Advance (MCA)
Although a Merchant Cash Advance provides quick access to funds, the interest rate and other fee are higher than traditional loans.
Furthermore, MCA comes with the easy approval process, and it is a good funding option for bad credit business owners, but the Merchant Cash Advance limits the flexibility of cash manipulation.
Merchant Cash Advances allow lenders to take a chunk of money from credit card sales.
What makes a Merchant Cash Advance a suitable option?
To stay ahead of the curve, you need to understand the financial insides and outs of your business. Loan payments through credit card sales strengthen cash flow. Flexible repayments terms make it easier for the borrower to pay the debt on time.
The final financial decision is in your hands because no one else understands it more than you. Keep in mind that a merchant cash advance is an expensive financing option.
What Sets Us Apart?
Merchant Advisors provides affordable and flexible funding options. To qualify for a Merchant Cash Advance, you must be running a business for 12 months and be able to process $5,000 per month in Visa and MasterCard receipts. Fill an online loan application and give 4 months' credit card statement. Merchant Advisors provides access to the funds on the same day.
We only deduct a small percentage of future credit card sales! Our flexible repayment terms provide ease to the borrowers. You will pay less in slower seasons, and more when your business picks up, there is never a payment penalty! We, Merchant Advisors, help to improve your credit score by reporting your payment history credit bureaus.Let’s get started
Sometimes business’s needs can be fulfilled easily with the working capital loan but due to lack of proper research and inconsideration, business owners apply for a Merchant Cash Advance and failure to make payments on time disrupts the cash flow.
If your business needs a cash flow injection, apply for an MCA. We recommend you to sit with our financial advisors to evaluate your business needs and demands to reach on the suitable funding option for your business. Remember to make the payments on time as this is a golden opportunity for you to improve your credit score.