Authored by Phil Cohen
Owners of seasonal businesses can often find themselves short on working capital during certain times of the year. When this happens, you may feel that you need to put off purchases needed for your business. Instead of taking on the hassle of a traditional loan, a merchant cash advance can give you cash with flexible repayment options.
What is a Merchant Cash Advance?
A merchant cash advance, also known as MCA, advances a fixed dollar amount to a business in exchange for a portion of its future daily credit or debit card sales. With this method, the business is receiving an advance on its future forecasted sales. Unlike bank loans, an MCA is easier to obtain, has quicker payout and offers flexible repayment. Just as sales can be fluid, so are your monthly payments. Instead of paying a set payback amount each month, you will pay a fixed percentage. That means if your sales are down, you will not be expected to pay back as much that month. There is also no collateral needed for an MCA. With the funds from an MCA, you can purchase new equipment, expand to a new location, pay off debt and hire new employees, among many other aspects.
Qualifications for a Merchant Cash Advance
There are some parameters that need to be met to qualify for an MCA. You must have been in business for at least six months prior to application. Your business needs to have at least $5,000 in overall sales each month. The business owner must have a credit score of at least 500 and you need to have a business checking account with a positive balance.
Contact Factor Finders Now
Factor Finders can help connect you with a lender for a merchant cash advance. We have a network of over 75 funding companies. Contact us now and we will respond within minutes.