During Hard Times, MCA’s are Thriving
What is an MCA? The letters MCA stands for “merchant cash advance.” Merchant cash advance lenders loan money to small businesses and receive a percentage of the credit card sales. During hard times, small businesses need cash to stay in business. Banks and traditional financial institutions have tightened lending guidelines. The entrepreneurs are now turning to nontraditional lenders to finance their companies.
The MCA loans are attractive because the company needs to raise cash. The terms and conditions of the loans are flexible. Also, the approval process for a loan is fast.
Cash Advance
First, small businesses need cash for many reasons. If banks will not help them, they can apply for an MCA loan. Business owners are using these loans to hire employees and to expand their businesses. For example, a restaurant franchise needs 30 new cash registers in new locations. The company can use a merchant cash advance to buy the cash registers. If the business has bad credit, MCA lenders do approve Bad Credit Business Loans and Unsecured Small Business Loans.
Loan Terms
Next, small business owners are saying that they like the terms of these loans. In fact, there are no fixed payments on some merchant cash advance loans. The loan is easy to pay back as long the company is making money. There is no set time to repay the loan in some cases. The company makes payments through credit cards that are processed by the bank. MCA’s also specialize in Motel Financing and Unsecured Small Business Loans.
Quick Approval
Then, the loan approval process is quick. Some business owners are able to receive the funds in 24 to 72 hours. The owner does not need any collateral for this type of loan. An MCA lender can also help companies get Bad Credit Business Loans with almost no paperwork. If a business is hit by a storm, the owner needs cash quickly to get the company off the ground and running.
How does the process actually work? Say a business owner applies for $50,000 in Motel Financing. The MCA lender will make a deal with the business owner. The business owner will accept the $50,000 in exchange for $65,000 in credit card receipts. Finally, this is only one example of a merchant cash advance loan. Business owners should read the fine print carefully with an attorney before signing any document