As a merchant in Nevada, you know how challenging it can be to maintain a positive cash flow. Expenses such as payroll obligations, utilities and rental agreements must be paid on time. If not, there may be serious consequences for your business.
Where can you go when you need a quick short-term cash advance for your business? If you’re like many Nevada merchants, you apply for merchant cash advances (MCA) to provide the funding that can take your business to the next level.
The first thing you should know is an MCA isn’t a loan. A merchant cash advance offers a way for merchants to tap into the power of their daily credit and debit card receipts.
With an MCA, you will be approved for funding based on the amount of money that your company receives from credit and debt card receipts. Although your MCA provider will assess other factors when making a funding decision, your credit and debit card receipts are the most important factor.
Benefits of Merchant Cash Advances
Nevada merchants apply for merchant cash advances to experience their benefits. The best part about this type of funding is the process is quick. It isn’t uncommon for merchants to receive a funding decision and cash within a few days.
Another benefit is the eligibility requirements aren’t strict. Merchants who have credit challenges, a limited time in business or no collateral can qualify for merchant cash advances.
Money from merchant cash advances can be used to pay for several types of business expenses. Whether you need to purchase new equipment or pay a one-time expense, an MCA can help you.
The MCA repayment process is convenient. After you receive a merchant cash advance, you don’t have to worry about sending payments to your MCA provider. After you sign your agreement, the payments can be automatically deducted from your bank account or daily credit card receipts.
How to Apply for a Merchant Cash Advance
The first step is to complete a merchant cash advance application. As you are completing the application, it’s important for you to provide accurate and complete business information.
With your application, you’ll be required to submit additional documents including a valid driver’s license, business bank statements, credit information, a voided business check, business tax returns and credit card processing statements.
After you submit these documents, the MCA provider will review your application. You’ll receive a funding decision within a few days.
What Should I Know About a Nevada Merchant Cash Advance?
Here’s the truth about merchant cash advance funding solutions. They can be an expensive way for you to obtain money for your business.
This is something you should keep in mind before you agree to a merchant cash advance. The good news is you can decrease the cost of the advance by paying it off early.
Another thing you should understand is your MCA provider will charge a factor rate for your cash advance. Your cash advance’s factor rate may be as little as 1.14 or as much as 1.48.
Here’s how a factor rate of 1.16 works on a cash advance of $30,000. The amount that you’ll have to repay for your cash advance is $34,800.
Your MCA provider will deduct a percentage of your daily (or weekly) credit and debit card receipts. This amount will be applied to repay your loan.
As a result of the deductions, the amount that you’ll receive from your business revenue will decrease. This could affect your ability to pay your other bills.
A merchant cash advance from a reputable MCA provider offers a convenient way for you to fund your daily business expenses. When used responsibly, an MCA can provide tons of value for your business.