What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a nimble financial solution, offering businesses immediate capital in exchange for a portion of future credit card sales. Tailored for enterprises with high credit card transaction volumes, it aligns repayment with sales, ensuring a flexible financial partnership that adapts to your business’s rhythm. This approach not only injects quick funds but also harmonizes repayments with your revenue flow, making it a smart choice for responsive business financing.
Why is Merchant Cash Advance Important?
Merchant Cash Advance Qualifications
|At least 550
|Time in Business
|6 months or greater
|$10,000+ per month
Additional Merchant Cash Advance Resources
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Frequently Asked Questions
A Merchant Cash Advance provides businesses with a lump sum of capital in exchange for a portion of future credit card sales, offering a flexible repayment structure based on sales volume.
Businesses receive an upfront sum of money and repay it with a percentage of daily or weekly credit card sales, making repayments align with the business’s revenue flow.
Merchant Cash Advances are ideal for businesses with high credit card sales, like retail and restaurants, needing quick capital without the stringent requirements of traditional loans.
Unlike loans with fixed repayments, Merchant Cash Advances are repaid with a percentage of sales, providing flexible repayments that vary with your business’s income.
The cost can be higher than traditional loans due to factors like the advance amount, term, and your sales volume, but they offer quick access and flexible repayment.
Often, funds from a Merchant Cash Advance are available within a few days of approval, making it a swift solution for urgent capital needs.
While credit scores may be considered, Merchant Cash Advances primarily focus on your business’s sales history, making them accessible even with less-than-perfect credit.
Typically, Merchant Cash Advances don’t impact your credit score as they are not reported to credit bureaus, but it’s crucial to understand your agreement’s specifics.
Terms vary but generally involve a factor rate determining total payback and a retrieval rate indicating the percentage of sales used for repayment.
Evaluate factors like advance terms, factor rates, retrieval rates, and provider reputation to ensure you select a suitable and trustworthy Merchant Cash Advance provider.