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Merchant Cash Advance
Merchant Cash Advances (MCA) are loans based on the credit card sales deposited in a merchant's business bank account. A business owner can apply for an MCA loan and have the funds deposited into their business account in as little as 24 hours after approval.
MCA providers evaluate risk and weigh credit criteria differently than traditional banks. They look at daily credit card sales to determine if a business is capable of repaying the loan in a timely manner. As a result, rates on MCA loans can be higher than other funding options.
other types of funding
other types of funding
other types of funding
-Business Line of Credit
-Working Capital
-Loan Consolidations
No prepayment penalties
Daily, weekly, biweekly payment options
Terms starting at 3 months
qualifications
other types of funding
other types of funding
Minimum FICO: 500
Minimum time in business: 6 months
Minimum monthly revenue: $10, 000
Last 3 months business bank statements
Signed application
The "holdback" amount is the percentage of daily credit card sales applied to your advance. The holdback percentage can range from 10-20 percent and is normally fixed until the advance has been paid in full. Because repayment is based upon a percentage of the daily balance in the merchant's business account, the more credit card transactions the business makes, the faster the advance can be repaid. Should transactions be lower on a given day, then the draw from the merchant's business account will be less.
When a business owner has taken multiple MCA's and has to manage the payments individually, a consolidation is highly recommended. The consolidation company will provide enough capital to pay off the other balances as well as leaving the business owner with enough capital to put toward expanding their business. Typically, the single day payment amount will be manageable as the term of the consolidated MCA is extended.
INDUSTRIES RESTRICTED FROM CONSOLIDATING:
credit protection, restoration & repairs; collection agencies; debt/tax reduction services; check cashing/money services; bail bonding; securities and commodities dealers/brokers; mailing & fulfillment houses; title companies/escrow agencies; precious metals; gambling/ casinos; adult entertainment.
Funds are deposited into the merchant's account incrementally each week to cover their MCA payments for the given week.
In other words, the money is given to the merchant in portions every week until the other MCA positions are paid off. The merchant is not forced into defaulting which is often the case when looking at MCA relief programs. Defaulting damages your credit record and makes it very difficult to acquire future financing.
Merchants looking to consolidate an unlimited amount of current MCA loans into one lower daily payment.
we do not offer personal loans!
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