Is a Merchant Cash Advance Right for Your Business?

How Merchant Cash Advance Work
October 16, 2017
What can Merchant Cash Advance offer your Business?
October 16, 2017

Whether you are beginning a small business today or you’ve been around.  You need to know various methods of getting some loan for your business. If your business is generating sales and payment is done using a credit card. Then you will find yourself in a scenario. Where you’ve made sales but you don’t have the money for some few days. This can necessitate for some borrowing. One of the ways of getting money for small businesses receiving payment via credit card is merchant cash advance (MCA).

rightA merchant cash advance is a method that allows business owners to receive payment via credit card  to get an advance of the amounts that regularly flows into the business merchant account. A merchant cash advance is more of advanced calculated as a percentage of the future revenue or credit card sales of your business. Are all businesses that receive payment via credit card need a merchant cash advance?

It’s possible that there are some businesses that receive payment via credit card on some of its products as well as hard cash on some products. However, a merchant cash advance will work for both businesses that receive payment exclusively via credit card and those that partly via credit card. 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 some 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 go to a merchant cash advance provider if you need cash quickly and cannot wait for the credit card payment to be processed and sent to you. You can also use this cash advance service if the amount you need is more than what you receive daily from your credit card payments. This quick cash will help a business to pay for services and also better its products. It can also help in securing long-term contracts that will make the cost of production to come down.
Adequate daily cash flow to a merchant account
If you have a business that process payment through a merchant account and receive daily credit card payments, then you can get money from a merchant cash advance provider. There several providers of this service who will be willing to give you a lot of money on the strength of the daily payments.
It’s worth getting such expensive cash advance
CostsThe cost of funds is a key determinant when borrowing funds. Merchant cash advance provider talks of payback amount. This is the total of the amount advanced plus the interest factor. 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 look at other consideration. If you want to get a cash advance to secure supply of raw materials for a longer period that will reduce significantly the cost of production, then it makes getting advance cash a worthy thing to do because it will bring a significant increase in profit margin. You just need to do a cost-benefit analysis and make a decision based on clear figures that justify the seeking such expensive capital.
Bank loan is not appropriate

Bank loans or advance may take considerably longer period to get approved. Again the channel of money may be one which the bank is not comfortable giving advance based on. Merchant account sends money to the bank like one a month or twice a month.  And the bank may not be comfortable 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. These companies help you find merchant cash advance provider with terms and conditions that are suitable for your requirement.


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 a few companies that offer this service and study their services. You will see their main area of focus and the kind of leads they offer. There are some companies that offer leads to merchant cash advance provider.  While there are companies that link those small businesses those links

2. Client testimonial

You can rely on past client testimonials to pick which merchant cash advance lead generator. You want to link up with to get good leads. Whether you want to get those to advance cash or you are looking for someone to advance you cash.  Client testimonials are so important in making such decision.

3. Referrals

This is also a way of getting a good provider of MCA leads. You can search on Google for companies that offer MCA leads. You should study very well those search result and see which company that benefited online visitors. Referral can also come from your friends or a person who has benefited from MCA leads generator and has something to say about them.

Are you out there looking for how to get some working capital to keep you going as you wait for credit card payments to get processed.  Turn to merchant cash advance providers?

Unlike the traditional bank, merchant cash advance will not seek collateral from you other than seeing the credit card payment statements that show your daily credit card payments. 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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