Merchant Cash Advance
Biz2Credit helps you get quick access to merchant cash advance as business loan option - one business loan application, over 1,200 lenders
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Access to capital is essential to the growth of your small business. It gives you the cash you need to improve and expand your company.
The classic problem? Struggles with cash flow can be one of the most critical obstacles to the success of a young small business. Even when your startup seems to be thriving, finding the money to meet operating expenses like purchasing office supplies and paying your electricity bill can be a challenge if the value of your company isn't quite liquid. It's not your fault-in the early stages of any business, cash and good credit can be hard to come by.
The solution? A merchant cash advance.
Sometimes, all a business needs is a little boost. A merchant cash advance can offer just that-a short-term loan offered in a lump sum to a business in exchange for a portion of the business' future credit card sales.
A merchant cash advance offers businesses speedy access to cash, without requiring excellent credit or collateral. Indeed, many small businesses that lack the collateral or credit rating to qualify for traditional bank loans are eligible for merchant cash advances.
Applying for a commercial loan can be a great choice for a business looking to expand. But if your company just needs some cash and needs it quick, a merchant cash advance can make a world of difference. It's fast, it's easy, and its repayment is based on your company's cash flow. So if you're struggling to qualify for a more traditional bank loan, a merchant cash advance may be right for you.
Call Biz2Credit today at 877-861-2210 to find out if a merchant cash advance is a good choice for your business.
Facts and Figures About Merchant Cash Advance
1. What Is Merchant Cash Advance (MCA) funding?
Merchant cash advance is a form of small business funding that provides companies with quick access to working capital. A small business owner, often a retail operation, sells a portion of its future credit card revenue to an MCA firm at a discount. Other terms for this type of small business financing are "factoring" or "credit card receivables funding." A merchant cash advance is not a loan, and there are no personal guarantees required.
2. What are the advantages of Merchant Cash Advance?
- This type of funding provides capital quickly at a time when a small business might need it to complete a deal, pay an unexpected bill, or simply to have working capital on hand.
- There are no fixed monthly payments. Rather, a percentage of future credit card receipts are given to the MCA firm until the amount of money provided in advance is repaid.
- Payment schedules are tied to the success of the merchant's sales, rather than a calendar's timetable. Thus, payments fluctuate based on the borrower's success. This is particularly helpful to retailers and other small businesses that experience seasonal ebbs and flows
- Approvals and funding happen rapidly -- often completed in a few days, as opposed to the weeks it can take for a traditional small business loans from banks to be granted.
- Large sums of money can be made available quickly. MCA amounts can be as small as $5,000 and as large as $200,000.
- Credit scores take less importance as MCA funders base their decisions on current operations and upcoming sales projections.
3. What are the eligibility requirements Merchant Cash Advance?
Typically, Merchant Case Advance companies look for the following:
- A small business in operation for at least one year.
- Monthly credit card sales of $10,000 or more.
- Businesses that have not declared bankruptcy in the past 12 months and are free from liens and other judgements against them.
4. What does it work?
Essentially, a small business owner enters into a sales agreement in which he/she sells a portion of the business's future daily credit card receipts in exchange for immediate cash infusion. The MCA company is buying a fixed percentage of a merchant's future credit card revenues at a discount. The typical payback period is between 6 and 12 months -- depending on the fortunes of the merchant.
5. How is repayment made?
There are typically three ways to repay:
- A percentage is take off each transaction at the credit card processing stage. Each time a business owner makes a credit card sale, a previously an agreed-upon percentage of the transaction is automatically forwarded to the MCA provider.
- A "lock-box" is set up, and the business owner steers all of his credit card sales to it. Sales are divided, and the agreed upon percentage goes to the cash advance firm.
- The MCA company agrees to have a direct debit from the business owner's account daily. The amount is based on the merchant's credit card sales that day.
For more information about Merchant Cash Advance, call Biz2Credit at (212) 644-4555 or email email@example.com.