Financing startups through Merchant Cash Advance

Merchant Cash Advance is an alternative way of funding, offering an immediate and effortless answer to a cash flow problem. It can be especially helpful if the solution is needed for the short term, with relatively few barriers to access. Although numerous ways of funding are available, a merchant cash advance is a great alternative for start-ups and small and medium-sized enterprises. In the next paragraphs, we are going to explore the benefits and advantages of financing through a merchant cash advance.

Easy application

The application process for obtaining a Merchant Cash Advance is quick, easy, and effortless. The majority of lenders allow for the application to be made online, by uploading all of the necessary information, such as relevant documents and additional paperwork. Requesting the fund takes a very few hours, and processing the MCA takes from a few hours to a few days. 

In many cases, once the MCA has been approved, receiving the fund can be a quick process that can take between a few days to a week.

Most Merchant Cash Advance providers request applications with different information, such as; the amount to be lent, name of the company, SSN, contact information such as address and email, annual gross revenue, credit card volume, and business history. 

Additional documentation that might be requested includes bank statements, tax returns, credit card processing statements, credit reports, and business IDs.

No need for perfect credit

The main advantage provided by Merchant Cash Advance is that it represents a great alternative to traditional funding methods. Small businesses and start-ups usually do not have enough credit history in order to obtain a traditional loan, and it becomes difficult to develop the business if there is not enough funding. Merchant cash advance companies are a suitable alternative for these businesses, as lenders do not require a perfect credit history.

However, having a business credit score is usually a requirement of MCA lenders, so having a business credit card is recommended. A history of previous loans and financing applications might also be requested.

Flexible payments

Another strong advantage of Merchant Cash Advance financing is that, unlike traditional loans that have a locked plan of repayment, the repayments of MCAs are corresponding with the monthly amount of revenue. This is particularly of use for startups and small companies, as during months with low business the payments are reduced which enables the companies with working capital.

No collateral

Traditional methods of financing may request your company assets should you fall back on the payments. However, with Merchant Cash Advance there is no requirement of a collateral, which protects startups from personal liabilities associated with credits.

Merchant Cash Advance financing provides a great number of advantages for financing startups and small businesses, including the ease of application, the payment flexibility, and the fact that there are no perfect credit and collateral requirements. In other words, this funding alternative is a modern solution for liquidity problems that need a rapid solution, while at the same time offering a flexibility that traditional financing methods cannot compete with.