Thousands of businesses get a merchant cash advance (MCA) every year. Their numbers have been growing steadily since the inception of the merchant loan nearly 10 years ago. The reason they choose to get one is pretty simple; they need working capital for their business and they need it quickly.
Many of these businesses had tried to get a business loan from the bank but were either turned down or they weren’t able to get funded in time to suit their needs.
I have seen almost every conceivable type of business apply for a merchant cash advance. Some of these businesses include; restaurants, grocery stores, beauty salons, garages, tires stores and franchises just to name a few.
What all these businesses have in common is that they all accept credit cards as a form of payment. The fact is; if they didn’t accept credit cards, they wouldn’t be eligible for a merchant loan.
What is a merchant cash advance?
What an (MCA) provider does is purchase a percentage of your future credit card sales. Those future credit card sales are paid back automatically each day through your credit card processor until the advance amount plus a premium are paid back. It is done in such a way that puts the least amount of strain on your business.
How do these businesses use their business cash advance?
I’ll answer that question by asking another question; what would your business do with 10, 20 or 100 thousand dollars? Would you expand your marketing campaign? Get caught up on your bills? Would you purchase more inventory? Renovate your business? Unlike most bank loans; a business cash advance does not put limitations on how you spend your money. Nobody knows your business like you do. Most MCA providers know that. You need to understand that a business cash advance is not cheap; use that money wisely. It could be exactly what your business needs to really take it to the next level.
How to get a merchant cash advance
A merchant loan is very easy to get if compared to a bank loan. All you do is fill out a two page form, give 4-6 months of merchant statements, set up your credit card processor and that’s it. They don’t require great credit or collateral and most MCA providers can fund you in about a week.