Merchant cash advances

 The convenience and flexibility of an MCA comes with higher financing fees compared to options such as working capital loans, which often feature competitive interest rates and flexible repayment terms.  

 At the heart of MCA costs is the factor rate—a fixed cost applied to the cash advance—potentially leading to higher overall financing costs. However, for businesses that value rapid access to capital and the absence of fixed monthly payments, an MCA can be an attractive form of short-term financing. 

 A merchant cash advance, even a fair credit merchant cash advance is not like traditional bank loans. It is correct that merchant cash advances have no personal guarantee to the business owner, but rather a business owner’s performance guarantee. 

10% up to 1.45% Factor Rate (This is not an interest rate/APR like bank loans or other traditional small business loans) 

No term limits. Estimated payback periods are 6 to 18 months, tailored to accommodate the sometimes-volatile cash flow of retail businesses and other inventory-dependent companies.  

Typically 1% to 3% Origination Fees, which is relatively minimal considering the speed and flexibility of the lending process. 

 The good news is that a merchant cash advance is much easier to qualify for compared to other traditional loans and lines of credit. But there are still qualifications for this type of funding – for example, an applying business must have credit card sales and regularly accept credit cards from customers.  

Merchant cash advances are a perfect option for small businesses relying primarily on high credit card sales and debit card sales. Merchant cash advance funders also prefer small businesses with these qualities because it reduces their risk with funding.  

MCAs are far easier to qualify for than traditional bank business loans. Even though it’s easier to get a business advance, there may still be restrictions on this type of cash advance. This type of advance is another business financing option perfect for a business owner who doesn’t rely on credit cards or debit card sales for their sales deposits and may have bad credit. 

No personal collateral is required.

• Flexible payment options attached to a percentage of sales in the future with no term limit to repayment terms.

For swift approval of a Merchant Cash Advance (MCA), you’re in luck as the necessary paperwork is minimal. You will primarily need:

• One page application
• Your Business Bank Account Statements

• Approval given even if with low monthly or annual revenue.
• No financial complicated statements are required.
• Low daily balances and/or Overdrafts or NSFs, can still be approved.