Should you even take an MCA?

These are serious questions to ask yourself as a small business owner looking for instant small business loans. When we look for information on the web, we generally find information related to either the promotion or denouncing of MCAs. Neither of these does much good to a business owner. As a funder however we have a few important bits of information to share related to the subject.

While it is absolutely true that an MCA is the fast business funding to get, because of the simple criteria. Ask yourself if you need an MCA or another kind of loan, the reason we say this is because MCAs are not term loans. We definitely do not want small business owners turned down by the bank applying for an MCA on the rebound without understanding the dynamics of the MCA funding completely. This is not a loan like a bank loan, it is a very different product.

Many who mistakenly take an MCA expecting it to be as a stand in term loan, find it to be a very unsuitable product for their business needs, we would like to prevent this. Taking an MCA needs to be a clear and planned decision, after knowing the product and its conditions, uses, limitations and advantages. Sure it can be an excellent product or a terrible product, however that has got more to do with the uses of the funding by the business owner.

From our perspective the businesses that should take an MCA are those who have short term requirements, strong cash flows and business in hand for which they require the merchant cash advance bad credit.  

When and under what circumstances should one take an MCA

The correct circumstances to take an MCA is for those who have strong cash flows, and require the funds to invest in a project that has quick turnaround. Typically, this is what business owners who work on a contractual basis do, if they have a contract in hand which is time bound. Under these circumstances, a business owner will require the funding as soon as possible. Here for him time is of the essence, and if the question is time, then there is no better form of funding than an MCA. This is just one example, and there are other uses of an MCA as well. 

The next point we come to are the merchant cash advance interest rates which are definitely far higher than the banks interest rates associated with term loans. Again, if a business owner requires the funding for short periods of time, they should have a clear plan for the money they are borrowing. This would mean an end to end plan, related to the utilization of the money, the turn around and more.

An MCA should not be taken as a substitute to a term loan. Point being these are specific products, and are used for specific uses. Those who take them for a number of mistaken reasons often complain how the product never suited their requirements. As we say MCAs may be the fast business loans to get, however they are meant for specific purposes and are not suitable for every kind of business need.

Contact us for more information related to MCAs, our funding team will assess your requirements and assist you accordingly. Alternatively, you can click on the ‘apply now’ tab and fill in your details.  

How to get a quick merchant cash advance loans?

If you’re looking for a merchant cash advance quickly, we provide small businesses with that, and we don’t require collateral and high credit scores. 

For small businesses that are looking for a merchant cash advance bad credit, we provide those, quickly and the entire process with us is hassle free as well. The funding that we provide small businesses is on easy terms and also easy and quick to obtain. We do however like to ensure that the owner of the business is ‘decided’ about their future course of action. Reason being small businesses comprise 99.7% of all businesses in the US, and the economy of the nation is dependent on them. As a result it’s important for small businesses to be financially stable and successful.

Banks do not prefer to fund small businesses, and as a result of this, the qualification criteria that they have is very stringent. Due to these stringent qualification criteria that banks have, over 90% of all small business loan applications are rejected.

We do however provide small businesses with the funding that they require, and we can do this because our qualification criteria are completely different from those of the banks. Based on the qualification criteria that we have which are also mentioned below here, most small business owners can ascertain for themselves whether they qualify for the merchant cash advance bad credit.

1.       The owner of the business must not be in bankruptcy at the time of the loan application.

2.       The business needs to be at least 12 months old and a running business.

3.       The gross income of the business needs to be at least $10 thousand or over that amount.

These are the very simple and easy to qualify with funding criteria that we have. Based on these criteria, most small business owners can simply ascertain for themselves by looking at the qualification criteria whether they qualify for the funding or not. Also mentioned below here are the other features that make the application process easy and hassle free.

The processing time frames that we have to provide small businesses with the funding they require is quick to say the least. Typically at the quickest we can fund a business within 48 to 72 hours from the time we receive the completed application. The paper work that we require is also very simple, and typically all we require is the last 3 months business statements. The processing time frames of banks is different and the minimum amount of time they would take is a couple of months.

We do not ask small businesses to provide us with collateral either, and the reason for this is because our funding is unsecured funding. This is a very beneficial feature for small businesses many of whom do not have the collateral required by the banks. We do however provide such small business with merchant cash advance loans and we don’t require collateral or security of any kind to do so.

Also the credit scores are not a big concern with us, and we are able to provide small businesses with low and very low credit scores with funding. This is because credit requirements are not part of our qualification criteria either.

For more information related to instant small business loans contact us. Our funding team will provide you with the information you require, and they will also assist you with the filling up of the application form.

Merchant Cash Advance Interest Rates

Many small business owners want to know about the merchant cash advance bad credit. Interest rates are calculated on risk factors, however it would be safe to say that the interest rates associate with MCA loans are higher than those of banks. It would be worth mentioning here that merchant cash advances are not loans technically, although they do fulfill some of the functions of a loan.

So why apply for a merchant cash advance if the banks are offering deals that are so much better? The answer to this question is one word ‘approval’. Banks are slow to approve business loan applications and that too especially from small businesses, and this is because of the risk factors associated with the funding. Typically, banks are not interested in funding small business because they consider these to be high risk investments.

As a result almost 90% of all small business loan applications are rejected by banks, this puts small businesses in a tough spot. The reasons for rejections are vast, as banks have a complicated list of criteria and requirements from small businesses.

An MCA or merchant cash advance is also what would be known as fast business funding. This means that such loans are approved by private funders such as Funding Easily. There are different views associated with MCA loans from useful to not good at all, and this has got to do with the individual needs of the applicant.

Who should apply for an MCA

If a business owner has a pressing requirement for cash for their business immediately, to use as a bridging finance, then in that case a merchant cash advance is the easiest business loan to get. If a business owner has a requirement for a term loan they should apply for a term loan.

Typically, a small business owner who requires cash for their business quickly, or those who have had their loan applications rejected by the bank. Merchant cash advances do not promise anyone the world, all they deliver to small business owners is the funding they require. So if receiving the funding is of prime importance to a business owner, then a MCA will suit their business needs fine.

The requirements of some businesses suit the funding terms associated with MCAs, and these are the businesses that should take the MCA. There are of course those who would like all the excellent features of an MCA rolled in with the features of bank loans, and this simply does not happen in reality.

If a small business owner is looking for funding for the longest duration of time and at the lowest interest rates, then an MCA is simply not what they are looking for.

How do MCA loans work;

The sign up process is simple and so is the approval process. In addition to this one of the greatest advantages of the Merchant Cash Advance is the fact that it is also a very quick to receive form of funding. Literally, a business owner can have the funding as quickly as the next day after submitting a complete application form and 3 months business statements.

The duration of an MCA is a maximum of 12 months and some small business who want to repay it earlier can do that as well. The repayment options of an MCA are either daily, weekly or monthly, and this depends on the merchant as well as the funder.

The interest rates are higher than those of banks, generally in the double digits. However, as we have mentioned here, those who apply for MCAs are a certain kind of business owner, and not all business funding needs can be met with an MCA.

Merchant cash advances are also not loans, they are simply cash advances against the future sales of the business. This is one of the greatest defining features of the MCA loans. 

What are the requirements for a MCA

The requirements for an MCA are mentioned here as follows;

1.       The business needs to be at least 12 months old

2.       The owner of the business should not be in active bankruptcy at the time of the loan application.

3.       The gross monthly income of the business must to be at least $10 thousand, or over.

These are the basic qualification criteria for a merchant cash advance, and most small businesses are able to meet these requirements easily.

Also since these are unsecured loans, we do not require collateral and security or personal guarantees from small businesses. Credit rating also does not play a role when it comes to approvals and rejections, however the interest rates of the funding will be affected with the credit scores. Typically, the lower the credit score the higher the interest rate.

Requirement based MCA funding;

As we have mentioned here in this article, the requirements to be approved for merchant cash advance business cash advance bad credit is simple and easy. Most small businesses are capable of getting the loan they require as soon as possible.

The primary users of MCA loans are those who require instant funding for short term uses. Typically, businesses that have contracts that are time bound, where the business owner requires working capital to complete a project. Or in circumstances where a business cannot accept a contract unless they have the finances available to ensure that they can complete the contract. For such business requirementsand more, an MCA will work very well.

However, if a small business owner has in mind a term loan, but applies for an MCA then the cash advance would not serve the purpose.

A merchant cash advance however works similar to a cash advance USA. Meaning if a business requires funding desperately for whatever reason, this is one funding option that is feasible and attainable as a last resort. Even for those looking for a term loan who are denied the funding by the bank on any grounds. Typically, there are requirements that need to be met, however these are mild in comparison to the stringent requirements of banks.

For more information related to how to apply for a merchant cash advance, contact us. Our funding team will assist you with the information you require. Alternatively, you can click on the ‘apply now’ tab and fill in your details online yourself.