Last Updated on August 2, 2022 by Tabraiz
A merchant Cash Advance (MCA), maybe for you if you are a small-business owner who needs quick funding. MCAs are short-term loans based on future sales. They can be approved quickly and often in 24 hours. Merchant cash advance same day funding
MCAs are not like traditional bank loans. They don’t require collateral and personal guarantees. It’s great for small businesses that don’t have the collateral. It’s also easy to make payments, even if your business is slow because repayments are based on future sales.
A few things are important to remember before you rush to get a merchant money advance. This funding option is great for companies that require quick cash access, but it is not the right choice for everyone. These are some things you should consider before applying:
Table of Contents
How much do you need to borrow?
Merchant cash advances typically range from $5,000 to $250,000. You can think about the amount of funding you’ll require to cover your short-term needs.
How do I pay my bill?
Lenders can offer different repayment schedules for merchant cash advances. Some lenders will set a fixed repayment period, while others may take a percentage from your daily sales. Before agreeing to a loan, ensure you are fully aware of the repayment terms.
How much does a merchant cash advance cost?
Merchant cash advance loans are often subject to high fees. You must compare the offers of multiple lenders. Don’t forget to consider the total cost and not just your interest rate.
How Fast Do You Need Money?
Merchant cash advances are a good choice if you require fast funding. Some lenders will even fund your loan within 24 hours.
Is your business eligible for a merchant cash advance?
Your business must be in operation for at most six months, have a minimum of $10,000 monthly revenue, and have been operating for at least six months. You may also need to meet additional eligibility requirements. Make sure you speak with multiple lenders before you submit your application.
How does a Merchant cash advance work?
The way it works is that you pay a percentage to the lender for future credit or debit card sales. In return, they give cash in a lump sum. Your average monthly sales are the basis of the amount you will receive. The more you sell the more money you’ll get.
A merchant cash advance does not have fixed payments. Instead, you pay a percentage of your sales to repay the loan. This flexible financing option is ideal for businesses with seasonal or fluctuating sales.
Merchant cash advances have one major advantage: they are easy to apply for. No collateral is required, and funding can be obtained in as little as 48 hours.
Merchant cash advances could be the best way to raise funds quickly for your business.
Take the time to compare multiple lenders’ offers if you’re thinking about a merchant money advance. You should carefully compare the terms and fees of the various lenders to get the best deal. Merchant cash advance same day funding