A Step by Step Guide to Securing a Merchant Cash Advance

A Step by Step Guide to Securing a Merchant Cash Advance

One of the dilemmas that small business owners face is how to come up with financing for the multitude of expenses inherent in running their companies. For many of them, the answer is a merchant cash advance (MCA), which involves selling an agreed-upon portion of your future credit card profits in exchange for the cash that you need.

Here are the advantages and procedures of obtaining a merchant cash advance.

The Benefits of a Merchant Cash Advance

Securing a bank loan can be a slow and painstaking process that you may not have time for, whereas an application for a MCA can be much quicker and simpler. Additionally, some business owners are unable to qualify for a bank loan. However, you still may be able to obtain a merchant cash advance even if you have a low or nonexistent credit score, few assets to use as collateral, and a slow cash flow. A merchant cash advance is easy to repay, as the percentage of sales is automatically deducted every month by the credit card company.

The Uses for a Merchant Cash Advance

Banks often stipulate how small businesses must use their loans, but with a MCA, there are no such restrictions. For instance, use it to pay your employees, consolidate debt, make timely tax payments, take care of your utility bills, or repair your office or shop. Alternatively, use it to foster dynamic growth through advertising, expansion, growing your product line, or acquiring needed supplies or equipment. The spending decisions are entirely yours.

How to Obtain a Merchant Cash Advance

The initial application for a MCA can often be submitted online. Next, you communicate with a financing company representative, who clarifies the procedure and requests necessary documentation such as your federal business identification number and details of your business insurance. In less than a week after you fill out and sign necessary forms, you receive the funds that you need.

For more information on merchant cash advances, contact Flipside Capital.