The Complete Guide to Merchant Cash Advances – What are they, why do they make sense for businesses, and how can you get one?
A merchant cash advance gives you the money you need to finance your business. If you are an established business owner with excellent credit, here is everything you need to know about what a merchant cash advance is and how to be eligible for one.
MCAs as they are commonly known as are the latest type of financing that businesses can get in order to grow their business or to cover any unexpected costs.
A merchant cash advance (MCA) is a type of financing that’s secured by the business’s future credit card sales. It’s also an alternative to traditional bank loans, which may be denied for businesses with less than perfect credit scores. It’s also an alternative to traditional bank loans, which may be denied for businesses with less than perfect credit scores. MCA are often seen as the last resort for funding, after all other options have been exhausted.
How can your business use a merchant cash advance?
If you are operating on a small margin or want more flexibility for your business, or if you are looking to grow your sales, then this type of financing may be the answer. If you need money up front for supplies, marketing, seasonal sales, or new equipment then there are several ways that you can get the capital you need. A merchant cash advance can be structured to meet your specific needs and is an excellent opportunity for cash-strapped businesses.
With a merchant cash advance, a business can use cash from a credit line to pay for inventory, equipment, supplies, and other operating expenses. This helps businesses meet expenses when they arise instead of paying out of pocket or waiting for bank financing. In addition to this flexibility, businesses also benefit from the low up-front cost of a merchant cash advance.
How do merchant cash advances work?
Merchant cash advances are a great way to increase cash flow by paying a percentage of your daily credit card transactions for a set period of time. Usually, the money is transferred directly into your checking account on a recurring basis and works out to be an average annual rate of 2.5% to 3.5%.
What are the Benefits of a Merchant Cash Advance?
The benefits of a merchant cash advance can be very attractive for businesses, especially those with high credit card processing fees. Depending on the terms of the merchant cash advance, companies may see an increase in profitability due to lower processing fees. With a merchant cash advance, there are no lengthy waiting periods, application processes, or credit checks. That allows business owners to focus on their core businesses instead of fixing their cash flow.
How Do You Get A Merchant Cash Advance?
If you’re a small business owner looking for a short-term loan to get you over a financial “hump,” then a Merchant Cash Advance may be an option that’s worth considering. It’s relatively easy to get, and has far less stringent requirements than a traditional bank loan. In other words, if you’ve been turned down for a bank loan, contact us here at Rifi Capital or more information on how a Merchant Cash Advance can help get your business on the right track.