Take your business to then next level with a fair and reasonable cash advance
Get a Free EvaluationMore and more frequently, businesses are choosing to use a merchant cash advance (MCA) for stimulating growth – whether that’s opening a new branch of a successful store, or simply upgrading their existing equipment to make work more efficient.
An MCA can help kickstart your expansion into new markets, or even further establish yourself in your industry. Sometimes all it takes is a little money to get things rolling.
If you’re operating an established business and need to quickly build capital, a merchant cash advance could be exactly what you’re looking for. However, they’re not for everyone – so it’s best to understand the difference before diving in headfirst.
Note: If you’re a startup with no credit history, you’ll need to look into other methods. Generally speaking, advances are reserved for companies that have proven themselves profitable over (at least) a brief period of time. However, getting a merchant cash advance with bad credit is still possible.
There are several benefits to using an MCA as a business owner:
1. No collateral (unlike a traditional bank loan)
2. Fast (you’ll receive your advance within 24-48 hours of being accepted)
3. No fixed monthly payments (great for companies driven by seasonal business)
4. One alternative if you don’t qualify for a loan
With those benefits come a handful of less desirable characteristics:
1. Higher APR than a standard loan
2. You’re tied to the same processor until your contract is over (this could be anywhere from 4 months to 1.5 years depending on the terms of your contract)
3. Possibility of legal trouble for merchants trying to push cash sales instead of letting payments occur naturally
At the end of the day, you’ll have to sit down and weigh your options if you need additional funding for your business venture. A merchant cash advance is just one way of making it happen (albeit an increasingly popular one).
Before you pull the trigger on anything, it’s a good idea to evaluate what’s the best fit for your company.
Between loans, advances, private equity, crowd funding, and even asking family and friends, there are ways out there to get your hands on cash. If an MCA is what you decide on, we got you covered.
