Merchant Cash Advance
Based upon the credit card sales deposited in a business’ merchant account. A business owner can apply for an MCA and have funds deposited into a business checking account fairly quickly—sometimes as quickly as 24 hours after approval.
MCA providers evaluate risk and weight credit criteria differently than a banker or other lenders. They look at daily credit card receipts to determine if a business can pay back the advance in a timely manner. As a result, rates on an MCA can be much higher than other financing options so it’s critical you understand the terms you’re being offered so you can make an informed decision about whether or not an MCA makes sense to meet your needs.
Benefits are there is no credit check –
No Credit Checks
Most banks and credit unions require good or excellent credit scores in order to fund any small business loans, and for those that have scores under 700, getting a traditional loan for your business can seem impossible.
With a merchant cash advance bad credit won’t get in the way of whether you can get an advance, which is a big benefit for many small business owners.
Unlike banks and credit unions, merchant cash advances do not require a credit check in order to apply!
A merchant cash advance is an advance on the credit card sales of your small business. That means that you can get an upfront sum of cash in exchange for a slice of your future credit and debit card sales. There are no credit checks as it is based on the capital of your business, unlike traditional loans that are based on your credit or personal assets.
Merchant cash advances aren’t your standard small business loan, so you don’t have to offer collateral or your credit history in exchange for the loan.
While raising your credit score can take time, with a merchant cash advance you can fund your business quickly.
There’s no risk to your personal assets, you simply use a small portion of your future sales to secure the cash you need today!.