A business loan typically involves your company receiving an infusion of capital in exchange for a structured repayment plan. An alternative option to this is the merchant cash advance. This provides you with a lump sum payment in return for a guaranteed percentage of all future credit and debit card sales until the advance has been paid back in full.

The merchant cash advance is designed specifically for companies needing a lot of capital quickly without having to jump through as many hoops as a traditional business loan or agreeing to a long-term commitment. It is an excellent way to promptly resolve cash flow issues surrounding normal operations, scalability, or new developments. When you leverage the power of your future success, you are ensuring your growth.

MCAs, or merchant cash advances, are unique financial vehicles that do not follow the same regulations as traditional business lines of credit. However, there are a few things to consider when you’re looking for a new MCA opportunity.

1 – Credit Score The total amount you will be given and the rate at which you will be charged varies depending on the credit power of your business. If you have a strong relationship with lenders that shows you paid on time, with little to no delinquencies, then you can expect favorable options.

2 – Time in Business Lenders tend to align with companies with a proven track record of operating successfully over a certain period. Therefore, most applicants can expect a requirement of at least 6 months in operation.

3 – Monthly Revenue Lenders expect certain revenue minimums to meet their repayment conditions. You should have at least $5,000-$10,000 in monthly operating revenue to secure a favorable MCA.