MCA – 101 on Merchant Cash Advances. Entrepreneurs and Small Business Owners Get This

Running a small business can be tough. Even beyond the day-to-day management of employees and inventory, there are a lot of expenses to worry about. You’ve got rent, payroll, merchandise, office supplies and so many other expenses, it can become overwhelming. Saving up enough capital to make last-minute purchases or to fill in the holes for surprise and unexpected bills can be almost impossible. Sometimes those expenses sneak up on you and there’s no time to find a bank loan, which often take weeks to receive and require intense credit checks and stiff regulations. But with merchant cash advance services, the process can be much quicker and simpler. These loans should be used with extreme caution and only for the short term. The interest rates are typically very high and can be devastating if you’re not wise about how you borrow.

The more traditional lending units, such as banks, are forced to follow very strict regulations, which can limit their ability to lend you the capital you need to keep your business going. However, with merchant cash advances, you’ll have the opportunity to move more quickly. You’ll have cash sooner and you can use the merchant cash advance loan in whatever way you need to keep your business afloat. Just be cautious of high interest rates and loan application fees.

Merchant Cash Advance: What to Look For

There are so many different options and services available, finding the right one can be extremely difficult. Each one professes to have the best options for you, but how do you know which merchant cash advance service will fit the needs of your business? Here are just a few factors to consider when you’re looking for business loans. If you don’t have the time or the credit necessary for traditional routes, consider a merchant cash advance. For full disclosure, NJE HOLDINGS, the parent company of all my business ventures holds a 3% non controlling minority stake in Rapid Financial Services.

Features Most business cash advance services work very similarly. The loan agreements are highly individual. A loan underwriter will help you with how much money you can borrow, how long you’ll have to pay it off and what kinds of interest and fees you’ll incur.

After the loan agreement has been made, detailing how much money you’ll receive and how much interest you need to pay on that loan, the service will connect to your credit card processing machine or software. With each transaction, a percentage of the total amount will be used to pay off the loan. You won’t have to worry about making monthly payments or dropping a large, lump sum to fulfill your obligations.

The loan agreements are highly individual. A loan underwriter will help you with how much money you can borrow, how long you’ll have to pay it off and what kinds of interest and fees you’ll incur.

Repayment terms The loan repayments come through the Visa and Mastercard transactions that pass through your business. There are options to repay more than that amount, but there are almost always restrictions on a minimum monthly or quarterly amount you must repay. All of these terms will be decided as you negotiate your loan terms. Watch out for hidden fees and interest rate spikes. Try to keep the payments as low as possible, but each deduction rate will be individual by business.

The loan amount and repayment terms will vary based on your previous credit history and a variety of other factors. Finding quotes and other information is very difficult without providing all your information. Be careful when applying, as each application will require a credit check. Too many credit checks can harm your credit.

Loan Application Information When applying for a loan, you will need to present documentation about your business and its past performance with credit card receipt evidence. You’ll also need to present information about you, including a social security card and driver’s license. Some merchant cash advance services are open to startup businesses, but not very many. Each loan application length is different, but you can expect it to be taken care of in less than 72 hours provided you fully cooperate with the process..

Help & Support In addition to helping you establish your loan agreement, company representatives should be on hand to assist in payments and other technical difficulties.

The business cash advance service industry can be difficult to understand, but it’s also an extremely useful way to help your small business succeed when used properly. Be sure to look for a service that has the accreditation and customer service you deserve such as RapidAdvance.