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Three Steps to a Merchant Cash Advance
Merchant cash advances have streamlined the business funding process, offering merchants a quick and hassle-free way to raise money. Unlike traditional business loans, MCA agreements dont require extensive financial paperwork. Merchants can expect a simple and straightforward process when applying for a cash advance.
A Guide to Securing Cash Advance Business Funding
Merchant cash advance providers work fast. With a commercial bank loan, the funds can take several months to arrive. Merchant cash advances are available within a week or two--in some cases, as little as 72 hours. This is an important advantage for business owners facing an urgent need for cash in order to seize an opportunity or pay off a debt.
Heres how the application process works:
Anatomy of a Merchant Cash Advance Contract
Its important to evaluate the contract carefully before signing on the dotted line. Since a merchant cash advance is not a loan, the terms of the contract can be confusing to merchants accustomed to the language of credit and debt. In the case of an advance, the merchant is a seller, not a borrower--she is agreeing to sell a percentage of credit card receipts at a discount tomorrow in exchange for cash today.
The contract specifies:
Business owners can use this information to assess how much the cash advance will ultimately cost the business.
Business Funding, On Time
Merchant cash advances have made the process of securing business funding faster and easier than ever before. In todays fast-paced economy, instant access to funding adds up to a distinct competitive advantage. Timing is everything--with a cash advance, businesses have the flexibility to jump on opportunities as they arise.