Merchant Cash Advance Car Dealer

Car Dealer Merchant Cash Advance Company

When you need cash quickly, your business cannot afford to wait. Whether you have a new opportunity or a sudden drop in cash flow, your business needs money to function well. With a merchant cash advance, you can get the funds you need to keep your company going.

How It Works
A merchant cash advance is basically a way to get your future sales in the present. It is awarded according to your credit card sales for the last two to six months. Once the lender looks at your average sales, they give you 50 to 250 percent of your monthly average. Afterward, you immediately begin repaying the advance through your ongoing credit card sales.

The Benefits of Getting a Merchant Cash Advance
With a merchant cash advance, the amount you repay is based on a holdback rate. This is rate is between 5 and 20 percent of your credit card sales. With the right funding option, you can set your business up for success.

Fast funding: When you apply for a traditional loan, it can take days or weeks to gather all of your documents, shop for the right loan and get approved. A merchant cash advance can be in your bank account within as little as 24 hours. The entire approval process takes only a couple of hours to complete. If you are struggling to meet a sudden money problem, a merchant cash advance gives you the fast relief you need.

Simple applications: Applying for a loan takes time and effort. When you get a merchant cash advance instead, you only spend a few minutes turning in all of the documents. You can do the whole process online without ever leaving your home.

Credit is not an issue: Normally, a bank only gives loans to businesses that have been in operation for years. They want companies and entrepreneurs with a strong credit score. If you have a bad credit score, you can still qualify for a merchant cash advance. This kind of funding option is awarded according to your sales history, so poor credit is not an issue.

Flexible plans: No one can see the future. It is impossible to know if your sales will double next month or drop off entirely. If you are getting a bank loan, unsteady sales can be a problem because you still have to repay a fixed amount. With a merchant cash advance, you only pay back a percentage of your sales. This means that your total repayment each month is based entirely on how well your business performs. If sales drop, you do not have to pay the same high amount.

High limits: While this kind of funding option might be easier to get than a loan, you can still get a large amount of funding when you need it. At the upper limit, the advance can total as much as $2 million. If you only need a few thousand to cover payroll costs, then you can apply for a lower amount. Whether you want a high or low advance, this funding style can help.

Collateral is not an issue: Even if your company has a lot of assets to use as a collateral, you might not want to risk losing them by getting a loan. A typical bank wants collateral so that they can recover their costs if you default on the loan. With a merchant cash advance, you are getting your future sales early. No collateral is necessary.

While a merchant cash advance might not be the right option for everyone, it is a useful funding tool for businesses. If you are short on cash, you can have money in your account within two days. From flexible repayment options to collateral-free funding, a merchant cash advance is a great option for entrepreneurs.

Merchant Cash Advance– How they can help
When you need money to meet urgent and pressing business needs such buying inventory or settling the payroll, your options are often limited. At this point, going to the traditional lenders isn’t an option since they are not usually known for their rapid response. You can decide to take your chances by going the traditional way and wait for weeks before you get any response on your loan application, or you can get a merchant cash advance for your business.
What’s a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is probably the fastest and most revolutionary short-term financing for small and medium-sized business. An MCA allows businesses to sell their future sales income in exchange for instant access working capital. The merchant will deduct an agreed percentage of your credit card sales until the advanced amount is repaid in full.
Initially, merchant cash advance was designed to benefit companies and retailers who have huge volumes of credit card sales. In the last few years, MCAs have evolved to include debit card sales and even bank deposits.
The merchant cash advance has an interesting business model. The product isn’t considered as a loan since merchants are not loaning you any money. Instead, they are purchasing future sales, and in return, they give you access to immediate working capital for your business. Since MCAs are different from traditional bank loans, they are subject to different underwriting rules.
How does a merchant cash advance work?
Unlike the traditional bank loans, MCAs are relatively simple and straightforward. During the application process, the merchant will ask for various supporting documents such as driver’s license, bank statements, credit score, voided business check, and business’s tax returns. They will then review your company sales from the past three to six months to determine how much they can give and the repayment period.
The repayment for an MCA is usually calculated using a factor or a percentage that is multiplied against the advanced money. Merchants use different factors, and they can range from 1.1-1.5. For instance, if you get an MCA of $100,000 with a 1.1 factor, the payback is ($100,000×1.1) which gives you a total of $110,000.
Repayment for a merchant cash advance begins as soon as you receive the money. The payback time can range from three months to 18 months. Typically, longer paybacks attract higher factor rates. But besides the payback period, the merchant will also consider the risks involved when calculating the factor rate.
How do you repay an MCA?
Repayment options for a merchant cash advance vary depending on the type of sales you are financing. For instance, if your MCA is based on credit card sales, the repayment is done by splitting your daily credit card sales with the merchant. The merchant gets a set percentage of your daily (which can range from 3 percent to 15 percent) until the debt is cleared. On the other hand, if your MCA is based on general sales, the merchant gets repaid by deducting the agreed amount from your business bank account.
Is a merchant cash advance a good choice for your business?
MCAs are designed to offer short term financing solutions for businesses. If you have good credit, collateral, and time, you can consider going to a major bank to get a loan since they are usually cheaper. However, if you need to meet urgent business needs, you have no collateral, and you have a poor credit rating, a merchant cash advance can be an option worth considering.
There is no doubt that a merchant cash advance is more expensive than the standard bank loan. But what determines whether you should consider applying for the traditional bank loan or an MCA is how urgent you need the money to meet your business needs.
What makes MCAs appealing to most businesses?
MCAs have numerous features that make them attractive to many businesses. Unlike in the traditional bank loans, you don’t need a good credit rating to access a merchant cash advance. While a good credit score can help in negotiating for better terms, it isn’t considered as a requirement.
Another major benefit with MCAs is that you don’t need collateral to access the money. The money is given against the business’s future sales, and therefore you don’t need a personal guarantee. Also, you have access to high borrowing limits and flexible repayments.

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