Merchant cash advance loans – A sneak peek into the ways they help businesses

In the world of small-sized and mid-sized businesses, cash flow is always the king. Cash is the main thing that helps you maintain inventory, grow your business, and pay suppliers. As the economic recession put a damper on the credit markets, businesses started looking elsewhere in search of cash. You will be rather happy to know that the newest solution in town is the merchant cash advance loans or the MCA loans. They offer a perfect alternative resource for funding businesses for those entrepreneurs who lack perfect credit rating or the required collateral. Best of all, there are many places to find out about business cash advance loans online, and plenty of companies who provide it too.


MCA doesn’t work like a loan and instead works on receiving a portion of the credit card sales of a business’ future at a discount. In lieu of this, the MCA provider purchases a right to retrieve a portion every month.

Here are few advantages of merchant cash advance loans.

#1: You don’t need to put any collateral or credit at stake

When it comes to business funding, merchant cash advance loans always offer a safe approach to getting easy access to cash as commercial loans usually have an impact on your credit. Merchants or business owners who take out a cash advance loan will avert the risk of losing their collateral in the event of a default. Neither will the lender check your score nor will he ask for any collateral requirements.

#2: Both collection and application process is easy

You need to go through no such hassles while funding your business with merchant cash advance loans. It is a pretty straightforward process that you could start through an experienced merchant cash advance broker, who will put you in touch with a lender. The commercial lenders will check your financial statements, business plans, and tax returns. The merchant cash advance providers offer 2 criteria, length of time in the business and monthly credit card returns. This is all they need to check.

#3: Easy access to cash

Since there is very little paperwork required in the process, it is needless to mention that merchant cash advance loans provide a superfast turnaround. On the other hand, commercial loans can take weeks and sometimes even months to process. Funding for MCA is usually available within a week of submitting your application. In case your business requires immediate funding, the instant response would be a vital asset.

#4: Approval rate is extremely high

Merchant cash advance loans usually rely on the performance of the business rather than on the credit of the applicants. The lenders adopt a pragmatic approach which lets the businesses to qualify for a cash advance. The amounts of cash advance depend on the average business and the monthly revenue in the past year.

Commercial loans have always been an extremely valuable resource of long-term financial funding but when an entrepreneur needs infusion of safe cash, cash advance loans is perhaps the best alternative. The provider of MCA loans collects a small percentage of the returns and hence businesses can easily aver the pain of defaulting on the loans and facing harsh consequences.