How does it Work?
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.