Merchant Cash Advance (MCA Defined)
A merchant cash advance provides small business owners quick access to
capital for emergencies and all types of business needs. As key players in this
industry.
While most people confuse a merchant cash advance (MCA) with a loan, the truth is that these two financing options are different. Your business can receive an MCA provided that you share a percentage of your debit card and credit card sales with the MCA provider.Or daily funds can be ACH from your checking account. Merchant Cash advances are typically quick to acquire and do not require a good credit score or collateral.
The maximum advance amount for an MCA may range from $2500 to $250,000 depending on the financing company. The provider may require you to make daily repayment via your merchant account.
You will need extra capital in the course of your business operations. The problem with most conventional financing options is that they take time and have strict measures. Even after applying for a conventional loan, you may fail to meet the requirements designed to favor large businesses.
With the various types of merchant cash advances, an MCA provider will give you a large sum of money. The provider expects a portion of sales generated from credit/debit card payments in return. Generally, you will pay back the MCA by remitting a percentage of your total sales from your business bank account. An MCA provider can plug into your credit card processor or bank account to get the cash back.