The iAdvance Now Guide to Merchant Cash Advances
Capital is the ultimate driver of business growth — every entrepreneur knows this. Traditional lenders know this too, so they frequently force small businesses to jump through several hoops to get the funding they need, if they give funding at all.
iAdvance Now is a leader in the alternative finance industry because of the solutions we offer to small businesses. One of the most powerful tools in our arsenal is a Merchant Cash Advance, or MCA for short. Many potential customers are unfamiliar with exactly what this term needs, so we’d like to share our expertise concerning this powerful form of lending.
What Is A Merchant Cash Advance?
An MCA is simply a purchase of your future receivables at a discounted rate. This allows you to utilize tomorrow’s revenues today, ensuring that you have the money necessary to capitalize on opportunities as they arise.
One of the most popular forms of a merchant cash advance is a credit card cash advance. This entails our purchase of a small percentage of your future credit and debit card revenues. We give you the cash up front, and then the cash flow of your business dictates when we get paid back.
What Makes It Different Than A Loan?
Traditional loans usually involve a set monthly payment that you are responsible for paying regardless of how your business is doing. This can create a cash flow problem where you just don’t have the funds to service your loan and keep the lights on.
Since merchant cash advances are paid back as you collect receivables, you are never responsible for a set sum at the end of the month. Instead, you pay back a certain percentage of the revenues you generated that day. If it was a slow day, you don’t have to pay too much. If it was a great day, you can afford a higher payment and pay off your obligation faster.
Cash advances are also easier to qualify for than traditional loans. Banks want to look into all sorts of information before approving a loan, including your credit score, ability to provide collateral, and other information regarding your past. If they find something they don’t like, they may deny you funding completely.
Most of the time, the application is processed much faster than banks can, frequently funding loans within 24 hours of initial contact. By contrast, banks can leave you hanging for months which can severely impact your business.
The Application Process
Our application process is designed to be as simple and transparent as possible and so are most other merchant cash advance application processes.
Regardless of the contact method, you will soon be communicating with one of our trained experts. We take great pride in not only providing small business owners with the capital they need, but also the advice to help them make the most of it. We offer a broad array of financial solutions, and our experts will be happy to help you determine which one is the best fit for you.
Once you know how much money you want to apply for and what loan is right for you, you’ll be asked a few questions about your business and the lender will then make a decision. If approved, you’ll have you money in as little as a day, with no restrictions on how you spend it!
Repayment
When it’s time to repay your loan, there are typically two convenient options. The first is credit card splits, which involves you switching to a credit card processor that your lender has a relationship with. For example, at iAdvance Now, we work with Priority, Integrity Payment Systems, and IRN Payment Systems. If you’re not currently using one of these providers, we can set you up with one. After that, our share of every transaction is automatically sent to us. You don’t even need to lift a finger.
If you don’t want to switch providers, that’s okay too. Many lenders can use ACH Funding to access your account and manually deduct their share. Either way, repayment is as convenient as possible.
Who Can Benefit From A Cash Advance?
A better question might be who can’t! Nearly any business interested in expanding, purchasing inventory, or simply keeping the doors open during a slow period can benefit from working with us. If you want to learn more about what we can do for you, reach out to us today!
