4 Reasons to Consider a Merchant Cash Advance
Reasons to Consider a Merchant Cash Advance
If credit card sales for your business are strong, a merchant cash advance (MCA) could be a great option for financing. This kind of alternative lending practice is perfect for businesses such as yours. With an MCA, your business would receive a lump sum initially. Then, the MCA lender would receive a percentage of your credit card sales monthly. This would continue until the term of the agreement is complete. The following are the top 4 major benefits of a merchant cash advance.
1. No Collateral or Credit Needed
You won’t need to worry about having a stellar credit record or providing collateral. With a merchant cash advance, the lender (often referred to as a factor) will consider your credit card sales to be all the collateral you need.
2. Cash When You Need It
If you don’t have time to endure the lengthy process of a bank loan, then an MCA could be ideal for your business. Generally, the approval time takes less than 48 hours. This helps to maximize your time, which can be crucial if you operate a small business.
3. More Efficient Application and Collection
When you apply for a merchant cash advance, you will not be required to cover the amount of detail that a traditional loan application entails. Most alternative lenders will examine two major factors. They consider the length of time that your business has been operational, as well the monthly average of your credit card sales.
4. Payments Are Less Stressful
When your business is already short on cash, paying a set amount every month can be stressful. Instead, you would pay a percentage of your credit card sales, which could eliminate much worrying on your part.
Getting the cash your business needs does not to be an ordeal. An MCA can help to create the funds for expansion, or it could help you to stay in business. If you think a merchant cash advance might be the answer to your cash flow problem, consult an expert at Muth Capital.