Authored by Phil Cohen
If you are a business owner with short-term financial needs, a merchant cash advance could be the perfect solution. With a merchant cash advance, also known as an MCA, you receive money in exchange for a percentage of your company’s future daily credit and debit card sale. Said another way, you are being advanced cash in return for future forecasted sales.
Benefits of Merchant Cash Advances
Merchant cash advances give flexibility to business owners who need working capital but are not interested in traditional loans. With an MCA, you do not have a set payback amount each month. Instead, you pay back a fixed percentage. This means if you have a month when sales are lower, the amount you will pay that month will be lower, as well. You can use the funds from an MCA to grow your business, such as hiring new employees, purchasing equipment or expanding your locations.
MCA Requirements
There are a few requirements to meet when applying for a merchant cash advance. Your company must have been in business for at least six months prior to the MCA. The overall monthly sales for your business must be at least $5,000. You must have a business checking account with a positive balance and the business owner must have a credit score of at least 500. Merchant cash advances are not only for struggling businesses. Any company that meets the qualifications can benefit from an MCA.
Contact Factor Finders Today
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 to get you started on the path for an MCA.