Business Growth With MCAs

Business Growth With MCAs

For growth-focused entrepreneurs, getting access to short-term capital can be a challenge. Typically, revenue is fleeting and takes a while to accumulate for any significant development, and bank loans can take some time to arrange. When looking for a boost of capital for business growth, or simply short-term financing to prepare for a big sales period, many entrepreneurs are turning to MCAs.

How MCAs Work

MCAs (or Merchant Cash Advances) provide short-term capital to businesses. These advances do not place any debt on the balance sheets, unlike traditional bank loans. Merchant cash advances are repaid electronically and automatically as a small percentage of every credit card transaction made by customers. This repayment method does not place a strain on cash flow, so business owners do not have to budget a portion of their earnings, or worry that operations will slow down due to paying back the advance.

Leveraging MCAs For Business Growth

MCAs are great financing solutions for business growth. Many times, business owners will use merchant cash advances right before a heavy sales period (such as the holiday season for retailers, or vacation season for resort locations), and also before rolling out new products and services. The merchant cash advance can be used for stocking up inventory, squaring away financial obligations, hiring additional employees, advertising, or anything else a business needs to maximize sales. As sales are made, the MCA is paid off quickly, and by using the funds from the advance wisely, any business can retain a very healthy amount of capital afterward. This is advantageous for companies focused on business growth, or businesses starting to feel the need to take things to the next stage of development.

Merchant Cash Advances Versus Bank Loans

Securing short-term financing through a bank can take time, which is not conducive to business growth opportunities. Additionally, bank loans place debt on the balance sheets, compromise credit ratings, and lock entrepreneurs into a rigid payment schedule. Merchant cash advances do not have payment schedules (as explained above). Additionally, MCAs offer debt-free financing, which preserved credit ratings, and they can be arranged quickly, with terms that are much more flexible than traditional loans.

Start Growing Your Business Today

If your business is experiencing growing pains, and you would like to take operations to the next stage of development, a merchant cash advance might be the right solution. To learn more about MCAs and other debt-free financing programs to enable business growth, call Vantage Commercial Capital at 913-543-4242. Our team will work with you to provide a no-obligation financial analysis to figure out which growth-focused strategies will work best for you.