The Basic Things You Need To Know About Merchant Cash Advance

When you are one of the businessmen that want to grow successfully, it requires a regular and maintains good cash flow and working capital. Today, it is very normal that every business or company goes through periods when the sales are down and your cash flow is tight and when that happens, many business or company owners look for sources of funding or cash.

One of the most used types of cash advance for businesses is the Merchant Cash Advance where this type of cash advance is only available for businesses only and it offers cash advance against the company’s future sales. Besides, this type of financing is only for businesses or company that have a steady volume of credit sales that includes retail stores and another kind of businesses and with those kinds of business, when they apply for a kind of this cash advance, they will receive a lump-sum payment from a financing company or lender. Check out this site to know more about working capital loan

Here are some of the basic things you need to know about this type of cash advance.

  • This kind of cash advance gives a business an alternative of funding service that the merchants can use it when there is collateral or even their credit rating is lacking. Moreover, this type of cash advance means that it is only buying a part of a company’s future credit sales for a specific discount. The company or businesses that applied for a cash advance will receive a lump sum of cash when the contract is officially signed.
  • With this type of cash advance, there is a fast collection and fast application. Their process when it comes to their funding can be really fast and their process is straightforward that is why there are many businesses applied for this kind of cash advance to source funds to improve their cash flow for their company to grow.
  • There is no need for collateral or credit. This means that the business cash advance will be one of the best safe ways to receive cash funds. We all know that when we apply for a commercial or personal loan, it can affect our credit ratings, but this type of cash advance will depend on the company’s future credit sales that is why the loan credit score is not present on any of the credit report.
  • With MCA, there is a high probability of approval rate compare to the approval of commercial bank loans.
  • Once you are approved on your application for MCA, there is fast cash access, and this also presents not much paperwork that is why you can access your application very fast. We all know that when it comes to a commercial loan, it will take several months until it is being processed by the financing company but with this kind of cash advance, it is usually only take under seven (7) days.