A merchant cash advance is a type of funding in which the business takes out an advance on future credit card sales. It’s paid back to the lender through a portion of the credit card sales until the advance is paid off. An MCA is a type of funding that offers these benefits.
No Credit or Collateral Required
Traditional loans often require a high credit score or pledging assets. A merchant cash advance is based on past sales, not your credit score or assets. You won’t have to give up equity. You use your future sales to pay it back.
Fast Approval and Access to Cash Flow
A merchant cash advance doesn’t take very long to obtain. A traditional loan can take weeks to push through with a lender. An MCA doesn’t require the same types of documents that a traditional loan does. Funding is fairly quick and straightforward.
Traditional loans are paid back at a set amount each. A merchant cash advance is paid back based on future sales. Repayment is a percentage of sales, not a set amount. If sales ebb and flow, you aren’t locked into a certain payment amount.
High Approval Rate
Going through the process of getting a traditional loan can be stressful because so many loans are not approved. Merchant cash advances are rarely denied, provided that your credit card sales are high enough. This can reduce your stress when you’re already facing cash flow problems.
Use Your Money As You Need
A merchant cash advance can be used for any purpose of your business. With a traditional bank loan, you may be locked into how the money can be allocated.
Don’t wait until you’re facing major hurdles over cash flow issues. Discuss your financing options with our team to get your business back on track. Contact Commercial Capital Funding to find out if a merchant cash advance fits your business.