Are you dreaming of a sleek new decal for your hair salon or a dazzling new mirror light for your boutique but not sure where you'll get the extra cash? Or perhaps you're simply looking for funds to help you keep the lights on during a slow period?
A merchant cash advance (MCA) can be your financial lifesaver. This flexible financing option offers a lump sum of cash in exchange for a percentage of your future credit card sales. No more compromising on your business's aesthetic or functionality. With a merchant cash advance, such as Moneris Advance, you can revamp your store, boost your brand, and attract more customers without breaking the bank or thinking twice.
Here’s a complete guide on the basics of a merchant cash advance and when one might be right for your business.
- What is a merchant cash advance?
- Who should apply for a merchant cash advance?
- Moneris Advance: What, How & Key Features
- How does a merchant cash advance benefit small businesses?
What is a Merchant Cash Advance?
A merchant cash advance (MCA) is a type of short-term financing that provides businesses with a lump sum amount in exchange for a percentage of their future credit card sales. This percentage, known as the factor rate, is typically charged daily. Unlike traditional loans, MCAs don't have fixed repayment terms or interest rates, making them a more flexible option for businesses with fluctuating cash flow.
Who Should Apply for a Merchant Cash Advance?
MCAs can be a viable option for small businesses that:
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Need quick funding: MCAs offer fast turnaround times, often providing funds within a few days.
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Have consistent credit card sales: Since repayments are based on a percentage of future sales, small businesses with steady credit card transactions are more likely to qualify.
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Have exhausted traditional loan options: If a business has been unable to secure a loan from a bank, an MCA might be a suitable alternative.
Moneris Advance: What, How & Key Features
Is your small business looking for quick cash infusion to fuel your daily operations or even expansion? Our merchant cash advance program, Moneris Advance, provides eligible businesses with up to $50,000 in funding, giving you the financial flexibility to seize new opportunities, invest in growth initiatives, or power through unexpected challenges.
Key features:
Easy Setup:
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Streamlined application process: Moneris Advance has a user-friendly application process that requires minimal documentation.
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Quick eligibility assessment: Our team will review your application and determine your eligibility for an advance in a timely manner.
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Transparent communication: Once your eligibility is established, we'll provide you with clear information about your pre-approved funding amount.
Fast Funding:
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Rapid turnaround: We understand that time is of the essence for small businesses. That's why we aim to deposit your funds within 72 hours of approval.
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No delays or hidden fees: There are no unnecessary delays or hidden fees to slow down the funding process.
Flexible Payments:
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Automatic deductions: Moneris Advance offers a convenient repayment system where a percentage of your daily sales is automatically deducted.
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No fixed deadlines: This flexible approach eliminates the stress of meeting strict repayment deadlines.
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Aligned with business performance: Repayments are directly tied to your business's sales, ensuring that you only pay back on the basis of how much you’re able to make.
24/7 Support:
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Dedicated support team: Our expert support team is available around the clock to assist you with any questions or concerns.
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Personalized assistance: We provide personalized guidance and support throughout the entire process, from application to repayment.
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Simplified reporting: We offer easy-to-understand reports that allow you to track your repayment progress and manage your finances effectively.
How it works:
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Application: You submit an application to Moneris to determine your eligibility.
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Approval: If approved, you'll receive the pre-approved funding amount.
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Funding: The funds are deposited into your business account typically within 72 hours of approval.
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Repayment: A portion of your daily credit card sales is automatically deducted to repay the advance.
Moneris Advance is a streamlined business funding solution that prioritizes speed, convenience, and support. If your business needs quick access to capital and you appreciate a hassle-free application and repayment process, Moneris Advance might be worth considering.
How Does a Merchant Cash Advance Benefit Small Businesses?
MCAs have become a popular financing option for small businesses seeking quick access to capital. While they come with unique terms and conditions, MCAs can offer several advantages that traditional loans may not.
1. Quick Funding:
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Fast and easy: One of the primary benefits of MCAs is how quick they are. Unlike traditional loans that can take weeks or even months to process, MCAs often provide funding within a few days or even hours.
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Urgent needs: This rapid turnaround can be crucial for small businesses facing immediate financial challenges, such as unexpected expenses, inventory shortages, or marketing campaigns.
2. Flexible Repayments:
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Daily deductions: Unlike traditional loans with fixed monthly payments, MCAs typically involve daily deductions based on a percentage of your credit card sales. This means that your repayments align with your business's cash flow.
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No fixed terms: There are no set repayment terms, providing flexibility in case your business experiences fluctuations in sales.
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Seasonal fluctuations: For small businesses with seasonal sales, MCAs can be especially beneficial as repayments can adjust to match the fluctuations in revenue.
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Economic challenges: In times of economic uncertainty, MCAs can provide a degree of flexibility by allowing small businesses to reduce repayments during periods of lower sales.
3. No Collateral Required:
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Reduced risk: MCAs generally do not require collateral, such as property or equipment. This reduces the risk for small businesses that may not have valuable assets to pledge.
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Accessibility: The lack of collateral requirement makes MCAs more accessible to startups and small businesses with limited assets.
4. Based on Future Sales:
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Cash flow alignment: MCAs are based on your future credit card sales, ensuring that your repayments are tied to your business's ability to generate revenue.
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Risk mitigation: MCAs align the repayment terms with the business's ability to generate revenue, reducing the risk of default.
5. No Fixed Interest Rates:
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Avoiding interest rate fluctuations: MCAs typically do not have fixed interest rates. This can be beneficial in times of rising interest rates, as your repayment costs will not increase.
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Predictability: This can provide greater predictability in terms of repayment costs and financial planning.
6. Credit-Challenged Small Businesses:
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Alternative option: MCAs can be an option for small businesses that may have difficulty obtaining traditional loans due to credit challenges.
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Second chance: Lenders may consider factors beyond credit scores, such as your business's revenue and cash flow.
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Building credit: By making timely repayments on an MCA, small businesses can improve their creditworthiness and increase their chances of securing future financing.
7. Tailored to Business Needs:
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Customized funding: MCAs can be tailored to meet your specific business needs, providing the exact amount of funding you require, avoiding unnecessary debt.
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Flexibility with lenders: Lenders may offer various repayment options, such as daily, weekly, or bi-weekly deductions, to accommodate different business needs.
MCAs offer a range of benefits for small businesses, making them a valuable financing option for those seeking quick access to capital.
To learn more and find out if your business qualifies, visit our Moneris Advance page here.
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