Merchant Cash Advance FAQs

business cash advance faqs

What is a Merchant Cash Advance (MCA)?

One of the most common Merchant Cash Advance FAQs is what is it? A Merchant Cash Advance is a financing option designed specifically for businesses. It provides businesses with a lump sum of cash in exchange for a percentage of future sales. It offers a quick and flexible way for businesses to access the funds they need to support their growth and operational needs without the need for collateral or extensive paperwork.

How does a Merchant Cash Advance work?

The process is simple. Once approved for a merchant cash advance, you receive a lump sum of cash deposited into your business account. Repayment is made through a small percentage of your daily sales.  This is then translated into a fixed daily payment. The percentage or amount is automatically debited from your business account through ACH (Automated Clearing House).

How long does it take to get approved for a Merchant Cash Advance?

Our streamlined application process allows for faster approvals. After submitting your application and the required documentation, our team will review your information promptly. In many cases, you can receive an approval decision within a few hours. Once approved, funds can typically be deposited into your business account within a few business days, providing you with quick access to the capital you need.

Do I need good credit to qualify for a Merchant Cash Advance?

While credit history is considered, we have more flexible credit requirements compared to traditional loans. Your business’s overall health, potential, and sales performance are taken into account during the approval process. Therefore, businesses with less-than-perfect credit can still have a chance to qualify for a Merchant Cash Advance.

How much funding can I receive?

The funding amount you can receive with a Merchant Cash Advance is based on your average monthly sales and the specific terms that adjust to your business. Funding amount ranges from $5,000 to $50,000, depending on your business’s financial performance and other factors. Our team will work closely with you to determine the appropriate funding amount that suits your business needs.

Can I use the funds from a Merchant Cash Advance for any purpose?

Yes, you can utilize the funds from a Merchant Cash Advance for various business purposes. Whether you need to invest in new equipment, expand your inventory, launch a marketing campaign, hire additional staff, or manage cash flow, the choice is yours.

Is collateral required for a Merchant Cash Advance?

No, collateral is not required for a Merchant Cash Advance. Unlike traditional loans, which often require assets as collateral, the advance is secured based on future sales with a daily payment structure.

 

How long does it take to repay a Merchant Cash Advance?

The repayment period for a Merchant Cash Advance varies depending on your business and the agreed-upon terms. Repayment is typically based on a daily payment calculated based on a percentage of your sales at the time of origination, and it continues until the advance, along with any applicable fees, is fully repaid. With BCA Capital Partners, the duration of repayment may range from 3 months to 12 months, depending on your business’s sales performance and the terms of the agreement.

Can I apply for another Merchant Cash Advance after repaying the previous one?

Yes, many businesses choose to apply for additional cash advances after repaying their previous advances. If you have a successful repayment history and your business meets the eligibility criteria, you can explore the possibility of obtaining additional financing for your business.

How does a Merchant Cash Advance differ from a traditional loan?

Unlike traditional loans, a Merchant Cash Advance is not based solely on credit history or collateral. It focuses on your business’s overall health and potential, allowing for more flexibility in approval. Repayment is tied to a percentage of your sales for a daily payment rather than fixed monthly installments.

Are there any prepayment penalties or hidden fees?

No, we believe in transparency and clarity. Our team will clearly explain all associated costs, including any fees, upfront, and there are no prepayment penalties. We aim to ensure that you clearly understand the terms and conditions before proceeding with the funding.

How can I apply for a Merchant Cash Advance (MCA)?

One of the answers to the last Merchant Cash Advance FAQs is simple. You can start by filling out our online application or contacting our dedicated team. We will guide you through the process, gather the necessary information, and work with you to secure the funding you need.

Still have questions?

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