Merchant Cash Advance (MCA)
A Merchant Cash Advance (MCA) facility can help business owners to get the money they need when they require a certain amount of cash in a situation upfront. The amount that gets funding will be based upon a percentage of credit card receivables the businesses has gotten by using its history of credit card receipts and bank statements to decide how much the business should be allowed to receive as its initial business cash advance.
The business has to pay back this Merchant Cash Advance MCA, in addition to a percentage, which is normally called the discount factor. This percentage has to be paid out of the company’s credit card receivables. The payments are taken either weekly, every day or every month until the from the business customer on a daily, weekly or monthly basis until the Small Business Cash Advance has been paid off.
A Merchant Cash Advance (MCA) is not precisely the same thing as a small business loan. This type of business cash advance is not limited to what the business charges as its credit rates or to the terms they have established for them. That’s why before a business decides to take out a Merchant Cash Advance (MCA) they should totally understand the way the whole thing works and the ways it could affect their company.
How to Get a Merchant Cash Advance MCA
It’s fairly simple for a business to apply for this kind of Small Business Cash Advance and is actually easier than for some of the other kinds of financing terms.
Call now to find out if your business qualifies for a Merchant Cash Advance (MCA)
All we need to get your advance is the following:
- Bank statements
- Credit card statements
These can be used if the business has regular sales involving credit or debit cards. Usually it is businesses such as restaurants, gas stations, hotels, convenience stores, or other retail outlets. Some business cash advance providers require that the business have been in operation for a minimum amount of time. Some may even take a lien on the business, but this is not common. Normally even a business with a low credit score can get a business cash advance from a qualified provider.
Rates and Terms for Businesses Who Use Them
The discount rate or designated fee that a business taking out a Small Business Cash Advance can be different depending on what type of provider gives them. A business should be careful to check it out in advance, as some of these providers may charge a fee that is greater than what would be charged for the interest rates of a traditional type of small business loan. Most of these types of financial providers will charge businesses a monthly interest rate fee of 5% and 17%.
The bottom line is that if you own a business that needs to take out a Small Business Cash Advance in order to help with its credit card receipts, then seeking out an appropriate provider could help your business to operate more smoothly.