Merchant cash advance (MCA), available for small businesses and medium-sized companies, can be a great alternative to traditional loans in times of economic stress. Merchant cash advance allows you to get cash quickly for your business with a simple approval process that is supported by MCA laws. You basically offer a percentage of your credit card revenues in order to get an MCA for you business.
Here’s a list of reasons MCA should be chosen for your small-scale business.
1. Quick Turnaround
MCA providers can process your application in a matter of days, unlike traditional loan applications that can take several months or even weeks to process.
2. Flexible financing
Providers do not place restrictions on how the money can be spent. You are free to choose how and when you wish to spend the money. The money can be used to expand, pay rent, rebuild business sites, or for inventory.
3. It’s easy to apply
MCA lenders allow you to submit your application quickly, efficiently, and with minimal effort. Merchant cash advance companies do not follow up on bank loan applications with intrusive questioning. Instead, they evaluate your eligibility for merchant money advance using just two factors. Your monthly credit card statements and the number of months you’ve been in business. You do not need to submit financial statements, tax returns, and other documentation in order to receive the funds. It takes only minutes to complete the loan application and send it online to the loan providers. To learn more details check website.
4. There are no up-front charges
Contrary to traditional loan fees, there are no upfront costs like application fees and closing costs.
5. High Approval Ratio
Merchant cash advance laws exclude low FICO and previous bankruptcies from the denial criteria. Your Visa and Master Card return are the only things that matter. They will decide if you’re eligible for MCA. A poor credit score is not worth much.
6. Merchant Cash Advance amount proportional with your business performance
Lenders will use their standard equation to determine the amount you can receive. It measures your business’ performance. The most important factor determining your eligibility is your business performance. This will determine your eligibility for MCA as well as the amount you would be able to receive.
7. There is no personal credit at stake
MCA will not risk your assets and credit if your venture goes sour. No personal guarantee or collateral is required. A MCA can be used to purchase items, rather than as loans, so it will not affect your future funding. These benefits are not available for traditional loans with default risk or abstinence risk from future funding.
8. Automatic and easy repayment
MCA provides a highly efficient payment option. MCA providers will only need a small percentage of your credit card receipts each month. Every month, credit card processors automatically deduct the merchant cash advance payment. This allows you to withdraw cash monthly and issue checks to lenders without the need. This also eliminates the hassles associated with late payment fees.
9. Revenue-Based Payment
Merchant cash advance repayment is easy and adaptable to your business performance. You pay small amounts for low revenue periods, and large amounts when there is high revenue. MCA providers can provide you with all the resources your business needs.
10. Competitive Advantage
Merchant cash advances are quick and easy financing options that allow you to capitalise on every business opportunity in an ever-changing market. It’s a key source of competitive advantage, both for small and large-scale businesses.
You don’t have to wait for the next step in your business’ success.