Merchant Cash Advance (MCA) – All you need to know

The current economic climate means that many businesses face significant challenges when trying to borrow the additional capital they need to evolve and grow successfully. Whether you need additional cash to invest in more modern, efficient plant, or you're looking to branch out in a fresh area and could do with some fresh stock, finding a lender can be difficult. A merchant cash advance could be the solution! Particularly suitable for smaller businesses or an enterprise that hasn't been running that long, a merchant cash advance is a simple, versatile way of obtaining the borrowing your business needs to retain its upward trajectory.

Find out if you are eligible

Types of merchant cash advances

One of the advantages of opting for a merchant cash advance in preference to more traditional loan types is the degree of flexibility it offers. MCAs are customised to suit the needs of almost any business. Most businesses are eligible, provided they provide a legitimate service and have a customer base who largely use a card terminal to process their payments. MCAs are suitable for businesses of almost any size and can be used by fresh, start-up enterprises as well as more established companies. The amount which can be borrowed can be adjusted to suit your needs, as can the repayment duration and the percentage of card sales which is taken as repayment each week or month. If you want a versatile, straight-forward cash advance, an MCR is often the best solution.

Merchant cash advance lenders

Merchant cash advance lenders offer a method of financing that's suitable for a large assortment of different businesses. Because the terms are so flexible and the barriers to accessing a MCA are typically lower than those encountered when accessing more traditional forms of finance, MCA lenders offer a valuable service to businesses who may find obtaining funding from other sources a challenge. Particularly if your business has few assets, has only been operating a year or two or has a limited credit history, working with a merchant cash advance lender could give you the money you need to enable your business to grow.

Applying for a merchant cash advance

When it comes to applying for a merchant cash advance, the process is normally pretty straight-forward and fast. Once an "in principle" decision is given, it's just a case of submitting supporting documentation and returning the relevant paperwork; then the money can be transferred to your account. To speed up an application, make sure that you have all the supporting documentation you need ready in advance: this not only helps you decide how much you need to borrow and how much you need to repay, it limits delays further along in the application process.

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