A Small Business Owner's Guide to Merchant Cash Advance: What It Is, How It Works, and Key Benefits
There’s a slew of financial products available to small businesses, and it can be challenging to narrow down the options. After all, each company has its own history and unique set of needs.
To help you learn more about our specialty, the Merchant Cash Advance (MCA), we've put together this brief guide, which includes important info on how MCAs work and how they compare to other financial products for small business owners.
First things first - what is an MCA?
To put it simply, an MCA is a boutique alternative finance product geared toward helping small businesses when they need to act quickly – whether that’s buying new equipment, paying taxes, hiring more people to fulfill a big job, or meeting payroll needs during a tough month.
MCAs allow you quick access to your future sales in exchange for a percentage of your daily sales. An MCA is not a loan – it’s simply a way to get access to your future sales immediately.
Okay, so how does it work?
The MCA application process is simple and quick, and we are able to fund companies in as little as 24 hours. There are no restrictions on how you use the funds, and we do not check credit, charge outrageous fees, or require collateral.
Here's how it works:
1. Submit your application
2. Get approved within 24 hours
3. We wire your funds to your account
4. You use your advance to bolster your business
To qualify for funding with us, there are just four criteria companies need to meet:
1. Owned and operated in the United States 2. In business for at least three months 3. No open bankruptcies 4a. At least $10,000 a month in bank deposits, OR 4b. At least $7,000 a month in credit card processing
What are the key benefits?
One key difference between a traditional loan and an MCA is what factor your repayment is based on. Loans charge you a fixed number each month, while MCAs are based on your projected revenue – so as your sales fluctuate, your payment amounts will fluctuate, too. This means more flexibility in repayment and more room to breathe.
Another key benefit to MCA is the unique ability to disburse funds FAST. When applying for a traditional bank loan, you typically don’t see the funds hit your account until weeks, if not months, later. With MCA, we are able to wire your funds within 24 hours of your application. Less red tape, less headache, less hassle.
Think an MCA might be right for you?
At Elevate Funding, we aim for transparency in all that we do – whether that’s presenting funding offers, onboarding, or educating merchants throughout the lifecycle of their MCA. We stay in close contact with you every step of the way to help answer questions, resolve issues, keep you up to date on best practices, and simply to lend an ear.
We know an informed business owner will make the best decision for their business, so we give you full details on your bottom line and the everyday impact your MCA will have on your finances – including baked-in fees, the overall cost of funds, and daily/weekly payment amounts.
If you need funding and wish to speak to someone now, please call us at 888-382-3945 or click here to send us an inquiry. One of our teammates will get back to you as soon as they are available.