Business Loans

Merchant Cash Advance to Grow Your Business

Business loans allow your unique company to leverage a lump sum of cash flow for internal and external needs. This empowers your business to secure the inventory you need, fulfill certain payroll obligations, or finance new growth opportunities. A business loan is an excellent way to ensure the future security of your company.

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Why Do You Need a
Merchant Cash Advance?

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.

Jump Through Less Hoops

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.

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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.

Merchant Cash Advance Tips

MCAs require a bit more of a personal relationship between the lender and your company. They will want to see how you operate and have a high reliability to pay back their advance. Some things you may want to prepare to facilitate this process include:

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Maintain a Strong Positive
Daily Balance

Lenders do not want to see negative balances on your ledger requests. They want to make sure that you are operating above the minimum baseline of your particular financial situation to ensure future growth and ability to repay.

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Use a Merchant Account

Most MCAs are structured around the funding company collecting ACH deductions set at an agreed-upon amount. Having a qualified merchant account will allow this MCA split to occur seamlessly without the need to go back and forth over third-party reports.

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Understand Scalability

If you enter into an MCA agreement and suddenly experience high sales, you’ll end up paying your advance back faster. The downside is you may sacrifice larger cushions of revenue to continue typical operations. Make sure you are prepared for this eventuality so you can maintain a solid working relationship with lenders.

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Trust Capital

All of the lenders on BorrowMoney.com have been carefully selected based on their reputations and brand identity. We want you to feel empowered in your lending selection by trusting the lender is offering transparent, fully communicated conditions each and every time.

At BorrowMoney.com, we offer a wide variety of lending possibilities at incredibly low interest rates. Our goal is to provide you with as many reliable, reviewed, and attractive options as possible.

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