The 7 Best Features of Merchant Cash Advances

Posted by Karen Erdelac on Apr 29, 2017

The 7 Best Features of Merchant Cash Advances

Merchant cash advances (MCAs) provide business owners with cash that they can use to supply and grow their businesses. MCAs are not loans, and they have many features which make them useful for business applications.


1. Credit rating is not the main criteria used to get MCAs.

Although credit is often checked during the application process, providers focus more on the business's sales over the last 6 to 12 months than they do on the owner's credit rating. Specific formulas are used to tell both whether a business owner qualifies and how much cash an owner is eligible to receive.

2. The fees are fixed and do not change.

Other types of financing may have variable rates that change with market conditions, but you will know up front exactly how much your MCA will cost you in fees and what the discount rate is before any of the funds are dispersed to you.

3. The repayment period is short.

Most MCAs are repaid in under a year, which means that you won't be saddled with debt over a long period of time. This allows your business to move forward without worrying about years of loan payments that keep working capital tied up for long periods of time.

4. Repayment is based on a percentage of daily sales.

Flexibility is the advantage of repaying a fixed percentage of daily sales. On slower sales days, your payment will be less, while on days with higher sales, you will pay more. The last thing an MCA provider wants to do is make it impossible to repay your advance, since this means the provider will lose money.

5. Repayment is automatic.

The 7 Best Features of Merchant Cash AdvancesYou don't have to think about writing checks or making payments every month with a merchant cash advance. You simply sign up to use their payment processing system and they withdraw the agreed-upon amount automatically each day.

6. You can usually get your money in a week or less.

The quickness of MCAs may be their biggest advantage, especially if your business needs cash to fix or replace necessary equipment so that it can reopen after a breakdown. Each day you can't operate, you are losing more money and possibly, customers who may go to your competitors to get what they want. Most business owners can't afford to wait long for the help they need.

7. No strings are attached to how you spend the money.

Other forms of financing have specific requirements about how you can spend the money you get, but MCA providers trust owners to know what their businesses need and make wise decisions about how to use the cash for their own best interests.

Quikstone Capital Solutions wants to be your business funding partner through their merchant cash advances. Apply now and if you qualify, you could have the cash you need in as little as one week.

Apply Now

Topics: Merchant Cash Advance