“There was a chance for me to purchase a third Sorbet store, but I needed the money urgently and didn’t have it. I called Merchant Capital immediately. I really liked the way they explained everything – they understood my plans and vision, and what I needed. In practice, the application process was quick and easy. There was no hard work for me. No red tape or supplying future projections. They could even draw my merchant statements.Payback via credit card is a faster, easier way to pay back the cash advance I got, without feeling burdened or disheartened by amounts going off. It’s efficient and safe: no-one touches my cash, so I feel more in control. It’s a really good system. In addition, I knew exactly what I was in for – no shocks, no hidden surprises. If I ever again need capital to leverage an opportunity, I’ll definitely phone Merchant Capital.”
A merchant cash advance is a type of business funding that helps businesses gain access to the cash they need in a flexible way. The lender provides the business with a cash advance which it pays back through the percentage of its customers’ card payments using a card terminal. This form of finance is suitable for businesses that use card terminals and can be easier to access than other options.
A merchant cash advance works by the business (or ‘merchant’) borrowing a sum of money from the lender then paying it back through customer card payments. Quite often, these loans are used to grow a business or to start a new venture. In contrast to other types of lending, there is no need for credit checks or a detailed look at your bank accounts.
A merchant cash advance (MCA) is an innovation in the lending industry that is designed to make it easier for businesses to get the right financing. An MCA, also known as "retail financing," can be used to help fund short-term needs that are vital to the success of your company like inventory, marketing, or advertising.
It will vary by lender. Just like with anything, there are always fees involved. Note the monthly administration fee. You might also have to pay extra fees like an application fee or an origination fee.
Is a merchant cash advance the best option for your small business? These advances are becoming more popular because they give companies the funds needed to keep operating even if they don’t have a long trading history. You also get instant access to the proceeds. They are usually unsecured, so there is no need for collateral or credit checks.
There are many benefits of merchant cash advances. Here are a few:
Loans are repaid according to set terms, like the interest rate and the repayment period. Cash advances are repaid based on daily or monthly credit card transactions.