What Is a Merchant Cash Advance?

A merchant cash advance is a type of financing that allows businesses to access working capital quickly and easily. It is a great way to fund business expansion, purchase of equipment or inventory, marketing/advertising, taxes or payroll, emergency funds and more.

A merchant cash advance works by allowing you to pay back the loan through a percentage of your future card payment revenue. However, the amount you repay can fluctuate based on your sales volume, so it is important to be aware of how repayments affect your overall cash flow.

Quick Approval

Often times, small businesses will find themselves in a situation where they require a quick infusion of cash to help cover unexpected expenses or meet business opportunities. In these cases, alternative financing solutions like a merchant cash advance can be extremely helpful.

At Alternative Funding Group, we make the process of obtaining an MCA easier and hassle-free than ever before. We review your entire business to find a financing product that works for you.

Our application is simple and only takes a few minutes to complete. Once you submit the minimal required documentation, we can usually give you a same-day answer.

The approval process for a merchant cash advance is less stringent than many traditional loans, and can be based on your business’s monthly revenue. If you’ve been in business for at least 3 months and have a consistent sales volume, you may be able to qualify for a higher factor rate than if your business is younger or has less time under its belt.

No Credit Check

A merchant cash advance is a form of unsecured funding that you can borrow against your future credit and debit card sales. This is a very smart, simple way to access the funding you need for your business without the need to give up personal guarantees or collateral.

The lender assesses your recent card receipts to determine how much money you can receive, based on your average monthly takings. It is a fast and flexible way to get the money you need, which you can then use for whatever you like.

Repayments are deducted directly at source from your card account every time you process a sale. This means there’s no chance of late payments or penalties.

This is a brilliant alternative to conventional loans as it provides a great way for busy businesses to manage their cash flow without being forced to choose between paying bills or maintaining inventory levels. It also makes repayments flexible based on your daily or weekly credit and debit card sales, giving you the peace of mind that comes with knowing you have the funding you need to keep your business going.

No Collateral

A merchant cash advance (MCA) is a popular alternative financing option for many small business owners. It has many advantages over traditional loans, including no collateral, more flexibility and easier acceptance for less than perfect credit scores.

The MCA repayment method is also based on sales, rather than a set monthly payment, which eliminates the risk of running out of cash in a busy month and falling behind. Repayments are triggered automatically by the percentage of daily credit and debit card receipts you receive from your customers, tying repayments directly to sales.

If you’re a restaurant owner looking for immediate funds to help you buy more inventory, upgrade your point of sale system, run a promotion or pay employees during a slow month, a merchant cash advance could be just the lifeline you need. Apply today! Our easy-to-use online application only takes minutes. We will review your entire financial situation and find a business funding product that works best for you.

No Federal Regulation

A merchant cash advance is a unique workaround for small business owners who have found it difficult to obtain bank loans due to the economy. They provide a source of immediate working capital and can be used to pay for inventory, upgrades, marketing campaigns, or even just to keep operations going during a slow month.

Rather than requiring collateral, merchant cash advance providers give businesses money in exchange for a percentage of their daily credit and debit card sales. These providers then deduct a fixed or varying portion of these revenues on a regular basis until the obligation is satisfied.

While it is a great option for some business owners, it is important to understand that this type of financing can be expensive. You should be aware of the factor rate, which is a fixed fee charged by your merchant cash advance provider and the withholding percentage, which is the amount that you will owe on your credit card transactions each day until the obligation is fulfilled.