Merchant Cash Advance Or Loans
Merchant Cash Advance – is a funding product providing working capital to businesses. When it comes to securing a merchant cash advance, businesses are far more likely to be approved and secure the amount of funding you actually need because cash advance is not a loan.
Loans generally are lower rates than MCA? Monthly payments not daily and many of these loans may also be lines of credit. Lines of credit sometimes have collateral, real estate or other guarantees. These options can be uncovered through consultation service at NTC.
MCA companies provide funds to businesses in exchange for a percentage of the businesses daily credit card income directly from the processor that clears and settles the credit card payment. A company’s remittances are drawn from customers’ debit-and credit-card purchases on a daily basis until the obligation has been met. Most providers form partnerships with payment processors and then take a fixed percentage of a merchant’s future credit card sales.
The Term Merchant Cash Advance – may be used to describe purchases of future credit card sales receivables, revenue and receivables factoring short-term business loans, and it has a different set of rules and rates.
Cash advance has some advantage over a conventional loan structure. Payments to the merchant cash advance company fluctuate directly with the merchant’s sales volumes, giving the merchant greater flexibility with which to manage their cash flow, particularly during a slow season. Advances are processed quicker than a typical type loan, giving borrowers quicker access to capital.
Merchant Cash Advances are often used by businesses that do not qualify for regular bank loans.
Ask our loan consultant if you were told you do not qualify for a loan.
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