Merchant Cash Advance
If your business is finding it difficult to secure instant funds from a bank even when you have good daily credit card payments record, Merchant Cash Advance is for you. We can assist you in securing commercial financing even if you have a medium to low credit score in the form of Merchant Cash Advance (MCA). The loan amount depends on your cash flow and gets credited directly into your account.
What is Merchant Cash Advance Loan?
MCA is a type of commercial finance for businesses based on their credit card sales and invoices. You will have multiple repayment options to choose from. The documentation required is minimal, the processing is fast, and you will not have to place any collateral on the line. The advance amount starts from $2,000 and goes up depending on your cash flow.
- MCA lenders assess risk and credit scores differently than banks
- Your business’ daily credit card receipts are assessed to ensure that your business can pay back the funds
- You will be selling a part of your future credit card sales to get access to funds
- MCA interest rates are relatively higher
At Mid-Atlantic Commercial Capital, LLC, our experts can guide you through the entire process and discuss the details before you apply for Merchant Cash Advance.
Who Should Apply for Merchant Cash Advance?
You should consider applying for MCA loans if you think the following reasons apply to you:
- Quick Access to Cash: The documentation is less, and the MCA is often released within a week
- Zero Collateral Risk: If you want a loan without putting anything at risk, this type of loan is for your business. The MCA may still require you to provide a personal guarantee of repayment.
- Low Sales: When a business is going through a slowdown in sales, the payments can be low.
You can have your MCA repayment terms based on a fixed percentage of your sales. The repayments can thus be adjusted based on how well your business is doing.
Eligibility Requirements for MCA Loan
Our experienced commercial financing team can evaluate your business to determine your eligibility. We have a vast network of lenders and when we present applications for MCA loans, they already trust our discretion.
The most important factors that we evaluate for your MCA application include the following:
- Average of the last 3 months deposits in your business checking account
- Average daily bank account balances
- How long you have been in business
- Your business type
- Negative balances and limited overdrafts
Your firm must have been in business for at least 3 months. Even if your business has not met this requirement, we may be able to help you. You will be required to present month-to-date daily activity information for the current month. This may be helpful in getting you an offer of MCA.
Importance of Credit for MCA Application
Even if your business has a low to medium credit score, you can apply for Merchant Cash Advance loans. This is because credit score is not a major factor for approval or declining this loan. At the same time, a higher credit score translates into getting access to the following credit advantages:
- Higher advance amounts
- Better interest rates
- Longer repayment terms
If you need any type of commercial finance for your small business, feel free to contact us. Give us a call at (540) 825-9800 or write to us at email@example.com.