Although there are drawbacks, the benefits of MCAs surely outweigh them. If you have done your homework well and feel that you could benefit from such a cash advance, it would be a really wise decision to go for a merchant cash advance!
Merchant cash advance cash advance or business cash advance is perfect for business owners that have difficulty securing traditional business loans or funding. Businesses that are starting up or do not have regular cash flow cannot guarantee regular payments. Unlike loans, merchant advance is not repaid with monthly installments on fixed dates. This helps business owners as the cash advance needs to be repaid only with credit card receipts.
Though loans and merchant cash advances work differently, neither should be taken out without due consideration to certain factors.
Credit card sales vs. Credit score
No Fixed Monthly Payments
For one thing, a merchant cash advance is not a loan that requires you to make fixed monthly payments, whether you can afford them or not. You don’t have to worry too much about them.
Payments become very convenient
You pay a percentage of your daily credit card sales depending upon the volume. The payments, as explained above, are very convenient to make as they happen automatically.
There was no pressure from the cash provider to repay the advance. There was no deadline involved. Cash would be credited to his account as and when credit card transactions happened. My friend did not have to face any problems of not being able to meet his operating costs again. He was extremely thankful to me and all that I had done was introduce him to one of my clients who bought merchant cash advance real time leads from our company.
Benefits of Merchant Cash Advances (MCAs):
MCAs can work very well for retail shops, hotels, restaurants and travel agencies that have a lot of credit card sales volume. The main benefits associated with these cash advances include: