You keep hearing people throw out some fancy words at you. Among them is “Merchant Cash Advance” or “MCA.” People keep telling you that it can help or hurt your business, but do they really know what it is? You have to do your own research, understand what an MCA is and what it entails. Here at Business Credit & Capital we want to give you all the information you need about applying for the different loans in one place. We do not want you hesitant, or feeling like you are missing a piece of the puzzle. We give you all the pieces and then you decide in what way you want to put it together.
So lets get down to it…
What is a Merchant Cash Advance?
An MCA is an infusion of working capital to help in getting you and your business settled with your immediate cash needs.
How does it help your business?
By getting you the immediate cash you need to get your business moving, more business can get the start up cash they need. Many banks are not so free in giving out money and loans to people, especially when they have insufficient credit or collateral. MCAs help small businessmen get around this.
How do MCAs work?
The amount of money you get is based on the anticipated future sales it seems your business will make. It is important to realize that MCAs are not loans, but an alternative to the traditional bank loan. Businesses receive a sum of money in return for a percentage of their future Credit Card receipts.
What is the difference between an MCA and a traditional bank loan? What makes an MCA an alternative option?
Seven reasons that make MCAs a viable option over bank loans:
First off: qualifying for an MCA is much easier than getting a bank loan.
Second: no checks are written and there are no late or hidden fees
Third: No need to post collateral
Fourth: No personal guarantees
Fifth: No loss in equity
Sixth: Less documentation is needed
Seventh: Approval comes within 48 hours
How do you pay back an MCA?
A percentage is pre-agreed upon. This percentage comes from your credit card processing and is sent directly from your processor to us until the Merchant Cash Advance is paid in full.
See, this is simple and easy! And often times this option can really help out a business in need. So now that you have all the basic information, contact BCC to see if this option is right for you and get the more extensive personal details.