Merchant Cash Advance

Merchant cash advances are most often used by retail businesses that do not qualify for regular bank loans and are generally more expensive than bank loans. Competition and innovation led to downward pressure on rates and terms are now more closely correlated with an applicant’s FICO score.

Small businesses take out loans and cash advances when they believe that the opportunities offered by expanded financial assets will outweigh the costs. Small businesses that don’t have the cash on hand to fund an expansion by themselves could rely on external funding, such as a merchant cash advance.

Some advantages are fast approvals, funding within 2 days, minimal documentation, bad credit will not turn you down. There are a few disadvantages short repayment terms could be from 4 up to 18 months, daily or weekly payments, higher interest compared to traditional banks.

Midsize or small business owners who cannot qualify for traditional business loans have the ability to secure a Merchant Cash Advance (MCA) . However, obtaining one differs from obtaining a secured or unsecured loan.