Benefits Of Merchant Cash Advance

Cash flow is the most vital element for all small scale businesses and medium size businesses. The growth of business, paying suppliers and laborers, inventory maintenance, etc. need ready cash. In such cases, merchant cash advance(MCA) is the best available option for such businesses. Financing companies like are one of the reputed MCA providers in this field. Recently had written about the growing popularity of merchant cash advance among the small to mid-scale businesses.

In most cases, small to middle scale businesses lack the collateral or credit rating backups to secure a loan for their business. They can opt for merchant cash advance as it does not have the stringent rules of loans. MCA is the process of purchasing a part of the future credit card sales of business at a rate of discount. Businesses receive a lump sum of money with which they could flourish their business. The provider of MCA gets the right to receive a part of the credit card sales of business at the end of each month. That would come around eight percent of the receipt total.

Check out some of the benefits of merchant cash advance:

No Lose Of Collateral

Those businesses which take merchant cash advance never has to face the risk of losing collateral. This is one of the most dreaded issues while taking loans. It is much safer option to get a lump sum of cash. Merchant cash advance also does not affect business credit rating. It is considered as a sales transaction, and hence it stays away from the credit score.

Easier And Hassle-Free Process

Merchant cash advance is comparatively an easier and hassles free process compared to others. Usually, money lending firms assess tax returns, financial statements, business plans, etc. But merchant cash advances do not do all that. They just check the credit card returns on a monthly basis and also the time from which the business had been operating. Just a $5000 monthly sales in credit card and about nine months of business experience is needed.

Real Quick Money

The usual loan processes take so much time to complete. It may take even months to complete leaving the merchants exasperated. But merchant cash advance takes very less time as very less paperwork is involved in this. It is most often received within just a week of presenting the application. This is very crucial as some businesses would need immediate money if they have to immediately pay off to any creditors or capture a new business opportunity.

Approval Rates Are High

Any stable business has a high chance of getting approved for merchant cash advance. MCA mainly checks the business performance standards and not the credits. The advance amounts are often based on the average revenue on a monthly basis by the concerned business’s previous years.

Collection Based Only On The Revenues

There is a slogan which captures the full essence of MCA- “We get paid only when you get paid.” This one sentence describes MCA in its full meaning, and that itself is the biggest advantage of merchant cash advance. Only when the business gets profit, MCA needs to be paid back.