How does the Merchant Cash Advance repayment process work?
A Merchant Cash Advance Company will give your business cash up front. They
take a percentage of your MasterCard, Visa and Discover Card sales every day
until it's paid off. It’s that simple. It's
not like you have to pay a really high set amount every month for a year. This works for many types of businesses. It makes sense when you have a decent
volume of monthly credit card sales. The money can usually get to your business bank account in as little as 5-7 days.
I’ve heard many people refer to Merchant Cash Advances as
“expensive money.” Every time I do, I cringe a little. Not because I agree, but
because people often do not understand what how “expensive” traditional loans
truly are.
A MCA provides a quick, low-doc, uncollateralized businessfinancing when most if not all other financing institutions will not. This
high-risk financing carries much high default ratios than typical bank
financing and for the MCA provider to stay in business they must make up for
these losses in their pricing.
At our offices we get calls from business owners everyday
asking about how a Merchant Cash Advance works. Nearly all are looking for
traditional financing that their current bank or finance partner will not
provide. Many of our clients recently had a traditional line of credit from
their bank that has been pulled, despite never missing a payment and being a
good client of the bank for years.
Depending on the business environment and whether or
not we are in a tight lending market banks can be difficult in dealing with.
Merchant Cash Advance Companies know the underwriting process and with just a
few questions can determine the amount of work it is going to take to get
you financed.
Quantum Merchant Services (Merchant Cash Advance America). Recent
Fundings.
**Liquor Store Expansion Project, Saint Paul, Mn.
$40,000
**Hair and Nail Salon Equipment Upgrades, Omaha, NE.
$15,000
$15,000
** Auto Repair Business, Faribault Mn
$25,000
______________________________________________________________________________Merchant Cash Advance America
7300 Hudson Blvd N
Suite 255
Oakdale Mn 55128
1-800-815-3123 ext 302
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