What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and debit card sales. These Merchant Cash Advances are not loans – they are a sale of a portion of future credit and/or debit card sales.
What are the Benefits?
- Same Day Approvals
- Funding up to $500,000 in as little as 1-2 Days
- Flexible Payback Periods of 3-18 Months
- Multiple Payback Options – Fixed Daily Payment, % of Daily Merchant Deposits via Split Payment, % of Daily Sales via ACH
- Funds Can Be Used for Any Business Purpose
- Almost All Business Types and Industries Can Qualify
- Fast Approvals – Often Same Business Day Less Documentation and Faster Funding than Other Options
How Does It Work?
A Merchant Cash Advance provides funds very quickly to businesses in exchange for a percentage of the business’ daily credit card income. A company’s remittances are automatically drawn from customers’ debit- and credit-card purchases on a daily basis until the obligation has been met.
In order to evaluate MCA as a funding option, the owner submits a one-page application along with the past 6 months business bank statements and past 4 months Merchant Processing Statements. Within 24 hours a funding offer can be presented, and funding can be provided within 1-2 days of a client-executed MCA agreement.
- Companies with 6+ Months Time-in-Business
- Companies that Process Credit Card Transactions of $15,000+/month
- A Bank Account and Associated Bank Statements which are Separate from the Business
- Owner’s Personal Accounts
- Owner’s Credit Score of 500+
“These Merchant Cash Advances are not loans – they are a sale of a portion of future credit and/or debit card sales.”
LendSpark offers a wide variety of solutions and our experienced professionals will present you with the best fit for your needs, budget and business profile.