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Shout-Out To Smes! A Cash Advance Can Solve Your Working Capital Woes!
25 Aug 2020
Are you looking for a way to get working capital quickly for your business? Merchant cash advance funding has emerged as an innovative business financing solution that is very popular with SMEs. Read on to know how an MCA works and if it’s the right fit for your working capital needs.
Repay From Future Receivables
Put simply, merchant cash advance financing provides an upfront amount in exchange for a portion of the business’s revenue over time. This type of financing is available for existing businesses that have a steady volume of sales. In the MCA model, once you get funding approval, an agreement is reached between the business owner and MCA provider regarding the advanced amount, payback amount, and terms of the advance. Once you sign the contract, an upfront advance is transferred to your business bank account within days or hours if required. Usually, a portion of revenue is remitted on a daily or weekly basis until the entire advanced amount and applicable fees are paid off.
High Approval Rates
The perks of merchant cash advance financing are that you can get funding quickly. The application can be submitted online by providing a few basic details about you and your business. Merchant cash advance lenders do not give major importance to credit score to give funding approval. Instead, lenders scrutinize whether a business has consistently strong incoming revenues - this helps them determine whether a business owner is in a position to repay the advanced amount from future receivables. Approval rates are high for merchant cash advances and lenders typically do not ask for collateral to advance an amount. All these factors make cash advances a favorable financing option for small and medium enterprises.
Flexibility In Repayments
Merchant cash advance funding is also an attractive solution for SMEs because of flexibility in repayments. Since remittances are tied to incoming revenues, businesses can pay off more or less depending on the volume of sales. This kind of flexibility is not available with traditional financing solutions such as bank loans where businesses have to pay a fixed amount every month no matter how their business is doing. A merchant cash advance is beneficial for seasonal businesses because they can repay in a flexible manner and not have to worry about maintaining cash flow for their business operations.
Use Advanced Amount As You See Fit
Merchant cash advance lenders welcome funding requests from different types of businesses including retail stores, drug stores, automotive shops, trucking businesses, restaurants, beauty salons, etc. An MCA is an excellent working capital solution when you need quick funding to take advantage of an opportunity – for example, to purchase additional inventory at a discounted price. It can also be used to cover daily expenses in lean season or emergency expenses at any time. Smart business owners use MCAs to finance marketing initiatives and implement business expansion plans. The best part of a cash advance is that there is no restriction on how you can use the advanced amount.
Want to know if you qualify for a cash advance? Visit the website of a reliable MCA provider and submit a simple online application form!
Advance Cash Financing Funding Lenders Merchant
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