Is a Merchant Cash Advance Right for Your Business?

Jason Hunt
October 16, 2017
Whether you are initiating a small business or been around for a really long time, you still have to know multiple ways to purse a quick loan for your business. If your business is generating sales and payments are usually received from credit cards, then you may end up in a scenario where you’ve made sales, however, on credit. This could lead to borrowing cash in advance to keep your business afloat. One reliable as well as an amazingly faster way to get quick loan is called merchant cash advance or MCA loan.

Let’s find out if your business qualifies the list of criteria or not.


A merchant cash advance is a method enabling businesses to receive payment via credit card for cash in advance incurred against an average sales figure by a business merchant.

A merchant cash in advance is calculated as a percentage of the future revenue or credit card sales of your business. Does it mean that all businesses that receive payment via credit card require cash in advance from a merchant?

There are plenty of businesses that receive payment via credit card as well as hard cash, depending on their customers. However, a merchant cash advance will work only for businesses that receive payment exclusively by credit cards either paid in full or even partially.

As a business owner, you should check your business and see if you can get cash from a merchant cash advance provider.
The following are few key points which should help you know whether a merchant cash provider is ideal for your business or not.

Quick Access To Capital
You should definitely consult an MCA loan provider if your coffee shop is in need of immediate working capital for paying its employees. Or you can also utilize this quick business loan service if the amount you’re seeking for is at least more than double of what you earn everyday.

This quick cash can save enterprises of small and medium scale SME from abrupt cash shortage.

Adequate daily cash flow to a merchant account
If you own a business that processes most of its payments through an MCA business account and receive credit card incomes regularly, then you are eligible for a merchant cash advance loan or working capital

There are multiple MCA loan providers that are also willing to give you a lot of money based on your creditworthiness and the .

It’s worth getting such expensive cash advance
CostsThe cost of funds is a key determinant when borrowing that money from an MCA broker.

Merchant cash advance provider discusses the aggregate amount in respect to the percentage of sales the borrower will have to return, either weekly, bi-weekly or even monthly.

This is the total amount in advance plus the interest.

For example, a business can get an advance of $10,000 and commit to paying back $13500. This means the cost of the advance is $3500.

Is the activity you want to invest the money going to return the cost of the advance plus some profit for your business? If the answer is no, then MCA loan isn’t applicable for your cause.

If you want to receive cash in advance with a long repayment period, so that you can pay for raw materials and reduce cost of production, then a merchant cash in advance is the perfect option.

You just need to do a cost-benefit analysis and then decide basing on figures that justify YOUR reasons behind the working capital.

SME-s are often ineligible for Bank loans

Bank loans will often take considerably longer time for approval. Again the channel of money may be one the bank isn’t comfortable giving loan based on.

Merchant account sends money to the bank like one a month or twice a month. Moreover, the bank may not be comfortable at all given they don’t control the merchant account.

So how do you get a merchant cash advance?

You need merchant financing leads. You need to get merchant cash advance leads that will not injure your business growth prospect instead of boosting.

There are so many merchant cash advance lead generating companies out there in the market and these companies help you find merchant cash advance provider with flexible T&C’s that are suitable for your case.

To help you get a good merchant cash advance provider, pick a company that offers merchant cash advance leads.

Here are some of the methods of identifying a good merchant cash advance lead provider.

1. Nature of service

You can check few companies that offer this service and study their available options. You will see their main area of focus and the kind of leads they offer.

There are some companies that offer leads capable of connecting loan seekers with MCA brokers directly through live telephone calls. While there are companies that link those small businesses those links

2. Client testimonial

You can rely on past testimonials of your clientele to pick a reliable MCA leads generator that sells double qualified leads only as you want to link up with good leads.

Whether you want to get those to advance cash or simply looking for someone to give you loans, client testimonials will vouch for you.

3. Referrals

This is also an effective way of getting a qualified MCA leads vendor. You can search on Google for companies that offer MCA leads. You should study those search results closely and find out the companies that benefited prospects/web visitors.

Referrals can also come from your friends or a person who has benefited from a particular MCA lead generator and has positive things to say about their services.

Are you out there looking for how ways to get some working capital to keep your business sustainable while you wait for credit card payments to get processed? – feel free to connect with us right now.

Unlike traditional banking, merchant cash advance will not seek collateral from you other than seeing the credit card payment statements that show your daily transactions. Again merchant cash advance does not subject you to some restrictions.

Once the holdback percentage is agreed, and then you will operate normally without changing anything.

Get cash today for your business, turn to a merchant cash advance provider today.

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Jason Hunt

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