Have you ever been denied a bank loan for your business? If so, consider obtaining your financing through a merchant cash advance. It can be is a quick way to obtain working capital for your business without facing a drawn-out approval process. Even better, it not a loan, it’s an advance. Your money arrives quickly and you can use it any way you see fit.
Merchant Cash Advances
Merchant cash advances, also known as MCAs, can provide new businesses and established small businesses with an appealing funding alternative, especially if they’ve been denied funding elsewhere. By using an MCA, businesses receive funding quickly as an upfront, lump-sum payment from the funding provider. They repay the advance using a slice of your future credit card sales or directly from your bank via ACH withdrawal.
How MCAs Work
Merchant cash advances can provide provides alternative financing to a traditional small-business loan that gives you a significant infusion of working capital to your business. There are few, if any, restrictions on how you use the money. You can use them to expand your business, purchase inventory or equipment, open new outlets, consolidate debt, and more.
An MCA can be much easier and faster to obtain than trying to get a bank loan. You may qualify even if your credit history is not great. Even start-up businesses can get approval. as revenue is not a prerequisite. Because MCAs are not loans they are not reported to the credit bureaus, nor is any collateral required.
As mentioned, paying off the advance can be structured in one of two ways:
- As a percentage of your future credit card sales, or
- As a periodic remittance from your bank account
In the case of paying back using future sales, the financing agent takes an agreed-upon percentage (often termed the “holdback rate”) of sales that will be paid automatically each month.
Give Capital Crown Investments a call for further information on MCAs.