How Merchant Cash Advance is beneficial for your business?
A merchant cash advance is often used when a business must have access to money quickly to cover short-term cash-flow shortages or expenses. However, it bears some major risks and should be paired with other financing alternatives. A merchant cash advance, also known as MCA, provides alternative financing to a traditional small-business loan. Typically, an MCA has an annual percentage rate in the triple digits, even if you only have one vendor. Typically, an MCA contractor will leverage your credit card sales to earn higher interest. Because these types of loans allow very easy credit and have balloon rates, it is wise to consider all other small-business loan options before taking out an MCA, especially if you have no other financing lined up.
Contents:
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How Merchant Cash Advances work?
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What is industry-standard Merchant Cash Advance rates?
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Calculate the cost of a Merchant Cash Advance
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Advantages of Merchant Cash Advances
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Alternatives to MCAs