This is another method of funding the business that allows you to sell a portion of 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
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: