Are Merchant Cash Advances Right for Your Business?

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Are Merchant Cash Advances Right for Your Business?

Are Merchant Cash Advances Right for Your Business?

Merchant cash advances are a type of funding designed for businesses that are not loans, but cash advances that have a unique application process, set of qualifications and repayment. In exchange for a percentage of their future revenue from credit cards, merchant cash advance, or MCA, providers offer a lump sum payment to business owners in need of increased capital.

What Types of Businesses Can Benefit From Merchant Cash Advances?

Businesses that rely on credit card sales for a large portion of their sales can usually qualify for an MCA. MCAs are designed for businesses that need quick access to cash for their business and may not qualify for a traditional loan from a bank due to poor credit or a lack of collateral. Other owners may prefer the payment plan for MCAs, which are directly linked to credit card sales.

What Can Be Done With an MCA?

There may be several instances when a business owner may want to apply for an MCA. If a company is experiencing growth, merchant cash advances can maintain cash flow even during hectic times. It is difficult for a business to grow without working capital to make it happen. Another way to use an MCA is for anticipated times of high need. If your business experiences a busy time of year, you can get money to pay for extra staff or inventory. A great thing about advances is that there are little or no limits on how you can use them to help your business, whether it is for payroll, inventory, implementation of new concepts, expansion, remodeling or something else.


Merchant cash advances are a relatively new funding option for business owners. They have become widely used because of the advantages they have over traditional loans. A big reason that business owners use MCAs is their approval process. Owners can apply for an advance online, without the need to mail, fax or scan any paperwork. The process is simple, only consisting of a few forms. Turnaround time for approval is fast as well, and funds can usually be delivered in a week or so. Qualified applicants do not have to go through an extensive credit check, nor do they need to use personal assets as collateral. Repayment is based on sales. Providers withhold a percentage of all credit card sales until the balance is repaid. Payment is dependent on revenue.

It is no wonder that merchant cash advances are becoming a more popular choice with small business owners, giving them the capital the need to grow their companies.

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