Willing to Avail Merchant Cash Advances? All that You need to Know

Posted by Team Finaxar on Nov 3, 2018 5:27:00 PM

Willing to Avail Merchant Cash Advances All that You need to Know

Merchant Cash Advances dates back to 1990’s where Barbara Johnson, a Connecticut businesswoman wanted to launch a summer marketing campaign for Gymboree Playgroup and Music franchises. She found herself in a problem as she did not have enough funds to launch this campaign. This is when merchant cash advances were discovered when she thought of borrowing cash in advance from the parents for bringing their children back in the fall for classes.

Merchant cash advances, thus, became a new form of small business funding, which allowed businesses to use future credit card receipts in advance. Today, merchant cash advance has become a popular choice among small businesses.

Why Merchant Cash Advances?

A majority of medium and small business owners face funding crises every year.  Are you willing to avail business funding and continue with the smooth functioning of your business activities? Consider merchant cash advances for the following reasons:

Fast Funding: MCA’s are one of the quickest forms of small business funding. To apply for MCA, you simply need few months of bank and credit card statement.  If you apply online for MCA and if your application is approved, money can be deposited in your bank account within few hours.

No Fixed Monthly Installment: Small businesses who take MCAs, usually repay the lenders by offering them a fixed % of credit card receipts. Even if your sales are slow, you don’t have to worry about not being able to pay the installment. This is because the lenders would take a fixed amount of installment irrespective of how low or average the sales were.

Qualify even if you have a bad credit: As far as a loan from banks is concerned, you need to have a good credit score to get the loan approved. With MCAs, that’s not the case, as, lenders are interested in the future of the borrowers than their past.

No Collateral: Some of the small business funding options requires the borrowers to arrange collateral such as equipment or property to secure the funding. In case the borrower is not able to repay the loan amount, the lender can recover it through the property kept as collateral. MCAs allow small businesses to avail business funding without collateral.

The sum you owe will never grow: With merchant cash advances, you don’t have to worry about late fees or interests. You simply need to pay the loan plus factor fees. While availing MCAs itself, you would know how much amount you have to repay to settle the account.

If your small business processes many credit card transactions on a regular basis, and if you require a temporary funding option that you are willing to pay money for, MCA is a perfect option.

Finaxar, has a tailored option for all the merchants based in Singapore. Merchant Credit Line is similar to MCA, however, with Merchant credit line you can get a business loan in as quick as 30 mins. Finaxar offers a complete paperless & online process. The application process is simple and hardly takes 2 mins.

Check out Merchant Credit Line: https://go.finaxar.com/lazada-offer

Topics business

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