The True Benefits of Using an MCA
An MCA, also known as a merchant cash advance, is an alternative sort of lending that millions of business owners across the world have benefitted from time and time again. In this arrangement, business owners like yourself borrow a needed sum of money from the company that handles your credit card transactions rather than your bank or other traditional lender. In order to repay the loan, instead of monthly repayments you’ll simple be expected to offer up a certain percentage of daily card transactions that are completed at your place of business. There are some distinct advantages that come with this arrangement, some of which include:
First and foremost, an MCA is typically much easier to qualify for than a traditional bank loan, making it the perfect option for small businesses that are just starting out. Because there’s little risk to the lenders, you’ll spend less time proving your creditworthiness and more time enjoying the cash this arrangement brings your business. Furthermore, there’s no collateral required to obtain a loan of this variety, meaning all of your expensive vehicles, real estate and other assets stay safe.
When you approach a bank about taking out a loan, it can take months to get approved, and still longer to get access to the cash you’ve applied for. When you choose an MCA for your business, you’ll have your cash on hand quicker, so you don’t need to wait to upgrade your business. Once you’ve been approved, it’s common to get access to the cash you need within 48 hours.
The best part about using a merchant cash advance to get cash for your business is that repayments are practically effortless and require no extra work on your part. At the end of each day, a small percentage of the card purchases that were completed in your business during the day will be subtracted and sent to your lender. This also means that a slow day won’t completely sink your business. Because the repayment is a simple percentage of your daily sales, even if you have a complete flop of a day and don’t sell anything, you won’t end up further in the hole at the end of the month.
An MCA provides small business owners with a financially sound, unique way to get their emerging venture the cash it needs to really get moving forward without creating financial struggles in the future. To learn about more benefits and options, speak to your card company.