Merchant Cash Advance
A merchant cash advance gives businesses access to capital fast to meet their business needs based on future credit card receivables. The way this business cash advance works is it gives business access to funds in a fast and simple way in return for a portion of the business’s future revenue receivables at a discounted price. To be approved for an MCA, certain criteria must be met. An important criterion, among others, is that the business must accept credit card payments or have other receivables.
At Rapid Finance, applying for an MCA is very fast and convenient, and can be done from your mobile device, tablet, or computer. Applying can be done from our online portal and should take just a couple of minutes . Our merchant cash advance amount starts at $5,000 and can range up to $500,000.
What is a merchant cash advance? A merchant cash advance provides alternative financing to a traditional small-business loan. Merchant cash advance providers say their financing product is not technically a loan. An MCA provider gives you an upfront sum of cash in exchange for a slice of your future sales.
A merchant cash advance is best for a small business that needs some extra money to get their business to be more competitive and generally more functional. … The MCA is a good idea for a small business just starting out that wants to make non-interrupting upgrades.
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Which business is ideal for Merchant Cash Advance?
Businesses that accept credit card payments and are in need of fast access to capital funds are ideal candidates. Remember, aside from being simple and having a much easier application process, a merchant cash advance provides flexibility. The reason an MCA provides flexibility is that the advance has variable payments based on business receivables. If your business has high credit card sales, lots of receivables, or is seasonal, then a merchant cash advance might be ideal for the business.
Like most financing arrangements, there are advantages and disadvantages to a merchant cash advance. An MCA is generally used by business owners who have been rejected by their bank or other traditional lenders for a business loan.