You might think what is merchant cash advance loans? With the help of this, a finance company will advance you a capital in exchange for a certain percentage of daily credit card sales, and a plus fee. This type of loan can be a quick and easy way to get business cash advance without any seed for collateral; even if you do not have a good enough credit score.
Who Qualifies for MCA?
Apart from knowing what is merchant cash advance loans, you should also know who qualifies for merchant cash advance loans?
In case you have little or no collateral, a low credit rating, or limited business history, merchant cash advance loan can be a good solution. The people who provide merchant cash advance loans usually have an easy eligibility standard. Thus, a majority of the small business will not have any problem qualifying.
Again, for a business that secures a big portion of their revenue with the help of the credit card payments, they will be able to use merchant cash advance as the short term financing tool. This can help with the working capital, debt payments, inventory purchases, and unexpected payments.
How to Apply for the Loan?
When you find out what is merchant cash advance loans, you will discover that it is a fast and easy process. Since merchant cash advances are paid off with the help of a daily credit card sales, MCA companies are going to check out your credit card processing statements for ensuring that you have sufficient volume coming into the business. Some of the merchant cash advance companies is going to ask for your credit card score and also your bank statements.
Merchant cash advance application is usually online and it might be approved on the same day of the application. Keep in mind that fast cash is expensive and MCA isn’t an exception. A merchant cash advance is pretty fast and easy. However, MCA come with the highest cost of the capital in the market.
Document You Will Need
- Credit Card Processing Statements
- Bank statements
- Driver’s license
- Business tax returns
- Voided business check
- Credit score
What Is Merchant Cash Advance Loans and How does it Work?
Every business is capable of using some extra capital. However, applying for loan is going to take some time and energy which you might not have. Moreover, even after you have sent out an application, there is a high chance that you will not qualify.
The Fundamentals of Merchant Cash Advance Loans
The main aspect of merchant cash advance loan is that it is funded in a day or two without any kind of paperwork. However, it has one caveat. In return for the lump sum advance, you are actually agreeing to pay the lender back with a certain percentage of the daily credit card sales. Merchant cash advance loan is considered to be one of the fastest financing options. If you study what is merchant cash advance loans, you will come to know that it is the most expensive loan in the market.