How a Merchant Cash Advance Can Benefit Your Business

Understanding your options with alternative financing is crucial to the long-term success of your business. While a traditional loan from a larger financial institution like a bank might seem like the most appropriate fit, it won’t always be a practical solution for your needs. Alternative options like a merchant cash advance, however, can prove advantageous when you’re looking to stimulate your cash flow and can’t wait though the standard loan application process. Consider these points to learn more about how you can take advantage of this service to benefit your company.

MCA Basics

First, you need to understand what this type of financing entails. As with most advances, this is a type of financing where you are given an amount of money under the expectation you will be receiving enough cash in the future to pay back what you’ve borrowed. In this case, the money you’re offered is determined based on the projected credit card sales your business will see in the coming months. The application process is quite straightforward and much easier and faster than the process involved with traditional bank loans.

Understand the Expectations

Though the application is easy to tackle, you likely will have a number of questions you need answered in relation to your agreement. You never want to sign anything without knowing what will be expected of you down the line. The best way to determine this is to speak with a representative of the financial agency you are applying through. The representative will be able to offer you a ton of vital information about your merchant cash advance, how to pay it back, and what those payments will look like for the duration of the agreement.

Advantages of Using MCAs

There are a few key advantages to this financing option. For one, having bad or no credit is not going to disqualify you from the advance. Additionally, an advance of this nature is ideal for organizations that do not have the assets or collateral needed to obtain a standard bank loan. When traditional financing is not a viable option for whatever reason, alternative solutions like MCAs provide a simple way to get the financing you need without having to jump through a ton of hoops along the way.

The next time your business experiences a disruption with cash flow, consider how a merchant cash advance might prove advantageous. Know your options and it will make all the difference in how the situation plays out.

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