Merchant Cash Advance (MCA) Page:
Overview:
Merchant Cash Advances (MCAs) offer a unique financing solution tailored to businesses with fluctuating revenue streams. Unlike traditional loans, MCAs provide flexible funding based on a business’s credit card sales, making them ideal for businesses that experience seasonal fluctuations or irregular income patterns.
Eligibility:
The primary eligibility criterion for MCAs is the business’s credit card sales volume. Rather than focusing on traditional factors like credit score or collateral, MCAs assess the business’s ability to generate revenue through credit card transactions. This makes MCAs accessible to businesses with varying credit profiles and limited assets.
MCAs utilize a factor rate rather than traditional interest rates. The factor rate represents the total repayment amount, which is determined by multiplying the loan amount by the factor rate. Unlike traditional loans, MCAs do not have an annual percentage rate (APR) since they are not technically loans but rather an advance on future credit card sales.
Repayment terms for MCAs are structured based on a percentage of daily credit card sales. A fixed percentage of daily credit card transactions is automatically withheld to repay the advance until the total amount, including the factor rate, is repaid. This repayment structure offers flexibility for businesses, as repayments fluctuate with sales volume.
Applying for an MCA is a streamlined process, typically requiring minimal documentation and offering quick approval:
- Complete a simple application form, providing basic information about the business and its credit card sales volume.
- Submit minimal documentation, such as recent bank statements and credit card processing statements, to verify revenue.
- Undergo a quick approval process, with funding typically available within a few days of approval.
- Upon approval, review and accept the terms of the MCA agreement outlining the repayment structure and factor rate.
MCAs offer several distinct advantages for businesses:
- Speed of Funding: MCAs provide rapid access to cash, allowing businesses to address immediate financial needs or capitalize on growth opportunities without delays.
- Flexibility: Repayment terms are based on daily credit card sales, ensuring that payments align with the business's cash flow and revenue generation.
- Accessibility: MCAs are available to businesses with varying credit profiles and limited collateral, making them an accessible financing option for small and medium-sized enterprises.
Visual aids such as graphs can help businesses understand the repayment structure and benefits of MCAs. Graphical representations of daily credit card sales and repayment schedules can illustrate how MCAs work and highlight the flexibility they offer compared to traditional loans.
Contact
- 1025 Old Country Road, Westbury NY 11590
- 631-813-9689
- jase@dynamicequityinc.biz
