Merchant Cash Advance

OVERVIEW

This is another method of funding your business that allows you to sell a portion the company’s future credit and debit card sales, in exchange for a discounted purchase price — paid up-front. MCAs are not loans; they are a cash-flow friendly way to access the capital your business needs steady cash-flow.

What is a Merchant Cash Advance?

As stated above, a Merchant Cash Advance is not a loan. It is a financing instrument that provides for the discounted purchase (by the Merchant Cash Advance provider) of a fixed dollar amount of a business’s future credit and debit card receivables. Your business gets immediate funds for your business cash-flow [rather than waiting for actual sales] and the MCA provider earns the difference in the actual price vs. the discount price. Instead of paying one large fixed monthly payment until a set maturity date like a loan, the business remits a fixed percentage of its daily debit and credit card revenue automatically until the specified amount of purchased receivables is remitted in full to the MCA provider.

Advantages of a Merchant Cash Advance

  • You don’t need a stellar credit history to qualify.
  • Cash-flow friendly! Your business remits less on slow days and more on busy days to keep cash-flows smooth.
  • You don’t have to worry about fixed monthly payments during tough times, and there is no set maturity date. This enables your business to be more flexible financially while fully funding all of its operations.
  • The remittances are automatic and don’t require you to write any checks.
  • Getting a Merchant Cash Advance is faster and easier than obtaining a traditional loan, making your much needed capital more accessible when you need it quickly.


How can I use the money from a Merchant Cash Advance? 
Advances from Franklin  Merchant Capital can be used for any business-related expenses, including but not limited to:

  • Regular and/or On-Going Operations: paying employees, travel, training, and research and development.
  • Business Assets: equipment, inventory, paying vendors, vehicles and technology.
  • Cost Management: seasonal downturns, renovations, business improvements, mergers, acquisitions and growth opportunities.

 

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