Increasing Cash Flow With Merchant Cash Advance

Starting and growing a successful business is not an easy task even in the best of circumstances. One of the main challenges is finding funding to pay for significant purchases. Many banks and other traditional lenders are hesitant to help new businesses. Fortunately, a merchant cash advance (MCA) could help your business get the funding it needs to enhance cash flow and reach its growth goals.

How Merchant Cash Advances Work

As the name implies, an MCA is an advance of cash to your business. In most cases, it is an arrangement involving your merchant account (used for credit card sales). If you accept cards such as VISA or MasterCard, you can receive funds from an MCA provider. You then pay back those funds plus fees using a portion of your credit card sales every day, week, or month.

In a few cases, some lenders will provide advances to your bank account which will then be paid back through automated withdrawals. However, this is a less common arrangement than working directly through your merchant account.

The Benefits of Using an Advance

The main benefit of using an MCA is that you can get money even if you wouldn’t qualify for a loan. Typically, the decision is based primarily on your credit card sales volume. If you are consistently making sales, you can likely qualify for an advance.

Additionally, the funds are typically relatively unrestricted. In other words, you can use them for almost any business need. Many small businesses use advances to pay for new equipment, build working capital, or make payroll.

MCAs are not loans. Instead, they involve selling a portion of your future credit card sales. Plus, they are easy to repay.

How To Get a Merchant Cash Advance

To get an MCA, you will need to submit an application to a provider. Most providers have a minimum credit score. However, this is usually low compared to traditional small business loans. Additionally, you will need to provide some basic information about the business.

The most significant part of the application process is submitting financial statements. Many providers want to see bank statements to prove your cash flow. Expect to need at least a few thousand dollars per month in credit card sales.

Learn More Today

Learn more about merchant cash advances today. This could be a great opportunity for you to get the funds you need to grow your business. Success is only an application away.