A Merchant Cash Advance (MCA) financing option provides small businesses with quick access to funds. Unlike traditional loans, an MCA is based on your business's future credit card sales. Essentially, it allows you to borrow against your future revenue. So, how can a Merchant Cash Advance benefit your small business? Let's explore the advantages.
1. Easy And Fast Approval: One of the biggest benefits of an MCA is the easy and fast approval process. Banks and other traditional lenders often have stringent requirements and lengthy approval procedures. In contrast, MCA providers focus more on your business's credit card sales history, making it a viable option for companies with lower credit scores or limited financial history.
2. Quick Access To Funds: With an MCA, you can get the funds you need within a matter of days or even hours. This quick availability of funds can be essential for small businesses facing unexpected expenses or needing immediate cash flow for growth opportunities.
3. No Collateral Required: Unlike traditional loans that may require collateral, an MCA is typically unsecured. This means you don't have to put your valuable assets, such as property or equipment, at risk. It provides a sense of security for small business owners who may not have substantial collateral to offer.
4. Flexible Repayment: MCA repayment is based on a percentage of your daily credit card sales. This flexibility allows your business to repay the advance at a pace that aligns with its cash flow. During slower sales periods, the repayment amount adjusts accordingly, reducing the strain on your business's finances.
5. No Interference In Business Operations: Unlike some other funding options, an MCA provider generally doesn't interfere with your business operations. You retain full control over how you use the funds without any restrictions or micromanagement from the lender.
6. Potential For Higher Funding Amounts: As your business grows and establishes a positive credit card sales history, you may be eligible for higher funding amounts through subsequent MCAs. This scalability can be beneficial when you need larger sums of money for expansion plans or to seize new business opportunities.
It's important to note that while a Merchant Cash Advance offers numerous benefits, it's essential to consider the terms and fees associated with the advance carefully. Ensure that the repayment structure aligns with your business's financial capabilities and future projections.
Since 2005, Quikstone Capital Solutions has been a trusted advisor to thousands of merchants. Quikstone provides these merchants with easy, fast, and flexible working capital for all their business needs. If you need cash for your business, contact us today. We have only one goal: to help your business succeed.
