Why Use a Merchant Cash Advance?
A merchant cash advance can be beneficial to a company in need of short-term capital. If you have high margins on your products, need additional inventory to be increase sales, or are facing an immediate cash crunch a MCA can be a useful solution for funding your business.
Fast and Easy
The MCA application process is not as complicated as a traditional loan and requires less paperwork, which often makes the merchant cash advance approval process much quicker and easier than a loan. An advance can be completed and funded in as little as 24 hours. Therefore, if your business has a need for capital, a cash advance is your quickest and easiest choice to finance your business.
Unlike loans, cash advances are non-recourse because you are selling future income and receivables in exchange for immediate access to working capital.
Merchant cash advances are usually repaid on a daily basis each weekday, but business owners with strong credit and business history can receive weekly payment terms. Payment is either calculated as a fixed percentage of your future credit and debit card sales, or by remitting fixed daily or weekly debits from your bank account, known as Automated Clearing House (ACH) withdrawals.
Terms typically range from 3 to 18 months with the average term length of approximately of 7 months.
Businesses may also receive pre-payment terms that reduce costs if the business is able to repay early.