Q: What is a merchant cash advance?
A: A merchant cash advance is a type of funding provided to a business. A merchant that receives a cash advance repays it with a percentage of their future sales.
Q: Is it a business loan?
A: MCA is not the same as a business loan. Business loans are given based on your credit score and ability to repay, but MCAs don't consider credit worthiness.
Q: How do I repay?
A: Your advance will be repaid automatically as a small percentage of each debit and credit card transaction until the amount has been repaid.
Q: Do I need a merchant cash advance?
A: Our clients commonly apply for an advance to:
• cover unexpected expenses;
• add new products or services to grow revenue;
• access working capital for expansion, remodeling or remodeling;
• purchase inventory or equipment;
• fund marketing or advertising,
Q: What's the application process?
A: You fill out a quick application and submit your last three business bank statements. There is no fee to apply, and you are not obligated to accept an advance unless you choose to.
Q: Is a merchant cash advance right for my business?
A: You can determine if a MCA is right for you by determining your return on investment (ROI). It can be calculated with an easy formula: ROI (%) = net profit/total investment cost x 100. You can learn more about ROI at investopedia.com.