Merchant Cash Advance - MCA
Merchant Cash Advances (MCAs) offer a convenient repayment method, automatically deducting a percentage of the business's daily credit card deposits.
Traditionally, MCAs have been preferred by newer and smaller businesses facing challenges in qualifying for financing, often due to their limited time in operation or lower credit scores. The flexibility of MCAs, coupled with their rapid funding availability, has made them a lifeline for businesses encountering unforeseen cash shortages.
In essence, a Merchant Cash Advance resembles personal cash advances, but with a distinction: small business borrowers receive an advance based on future credit card sales rather than projected personal income. It's crucial to differentiate MCAs from Business Cash Advances, which are repaid through automated fixed daily or weekly withdrawals aligned with cash flow.
Loan Amount: $5,000-$200,000
LTV: as low as 18%
Speed of Funds: Fast Approvel 24hr to 48hr
Loan Term: Up to 2yr