Merchant Cash Advances

What are Merchant Cash Advances ?


A strict repayment process is one of the things tarnishing the reputation of conventional bank loans. Most lenders require borrowers to start paying back after receiving their money. This level of strictness is what leaves most business owners skeptical about applying for bank loans to service their investments whether short-term or long-term.

The slow nature of some of their businesses is another thing that can make them avoid borrowing from banks. Repaying loans when one lacks enough capital to fund their regular expenditures can be challenging. One way businesspersons can avoid all this predicament is through applying for a merchant cash advance.

Also referred to as MCA, it is not a loan but an advance which is based on the expected revenues or the credit sales of a particular business. Small business can apply for this type of advance, and have it deposited into its account very fast. It can be used for several purposes, but it is best for businesses that want to increase their revenue after a certain period. Here at Capital Merchant Advances, we can help your business succeed by providing merchant cash advances.

How Merchant Cash Advances Work

At first, the MCA provider and the small business agree on the advance amount, what should be paid back and the holdback percentage. After this agreement, the advance amount is transferred to the bank account of the small business in exchange for credit card receipts or a certain percentage of receivables. A portion of the revenues made daily or credit card receipts is held back to pay the MCA lender as agreed. This is what is referred to as a holdback. It continues until one completes paying their advance.

Since repayment is usually based on the chunk of daily balance in a merchant’s account, the more transactions that happen in a specific business, the faster they can repay the advance. If in any case transactions are lower on a given day, the amount drawn from the merchant’s account will be less. When experiencing slow business, payback is usually equal to what is in the deposits coming into a merchant’s account.

Merchant Funding Benefits

You get to enjoy an easy application process as long as you provide the necessary documents. The other thing you get to enjoy with merchant cash advances is fast approvals and funding. Funds will be deposited to your business account real fast. A personal or business credit score does not matter in this case because you can still qualify for an advance with a bad credit score. No collateral is required in MCAs because they are usually unsecured. You will not be required to put any of your assets on the line to get one.

Merchant cash advances are good for businesses with good credit transaction records and need quick access to cash. Some of the best candidates include retailers and restaurants.

How to Apply for MCAs with Capital Merchant Advances

You can use our online app to apply for business funding. We can help you where you experience challenges. You can also talk to one of our experts who will advise you on the best funding options. Complete your application and have funds disbursed in your account fast. Some of the things we will need from you include credit card statements and bank statements. Apply for an advance with Capital Merchant Advances.