What Are South Carolina Merchant Cash Advances?
Merchant cash advances are not the same as loans. When you apply for an MCA, you are asking the lender to advance you funds in exchange for a small, daily percentage of your debit and credit card sales, plus an extra fee. These types of cash advances are a great option for business merchants to get funds they need quickly when they are not looking to put up any collateral. MCAs can be applied for without perfect credit.
Most merchant cash advances are between $2,000 to $250,000. Most approved businesses will be able to recieve their funds in as soon as two business days after getting approved. Repayment is easy and can be paid daily through direct deposit payments into your merchant account.
Pros And Cons Of South Carolina Merchant Cash Advances
•Easy to get approval
•Fast Access to funds
•Bad credit is ok
•Can be used for a variety of business purposes
•Fees are higher than with traditional loans
•Reduces daily cash flow because of repayment plan
•Less flexibility in changing merchant servicing providers
Who Can Qualify For A South Carolina Merchant Cash Advance?
Many businesses wonder if they would be eligible for a merchant cash advance. For those businesses with a limited history, little to no collateral and a low credit rating, MCAs can be the perfect solution when capital is needed or financial problems are becoming a burden. For a business which makes a large portion of their income with credit card transactions, such as a convenience store or a restaurant, a merchant cash advance is a great short-term financial tool. It can be used to help with purchasing inventory, paying a debt or covering unexpected expenses.
How To Apply For A South Carolina Merchant Cash Advance?
The process for a business to apply for an MCA is quick and simple. Because the advance is paid back daily based on a percentage of your credit card transactions, the lender will look at those daily credit card transactions to deem whether you could afford an advance. Certain MCA companies will use this information alone to determine eligibility. Other companies will use this information in addition to a business’ credit score and banking statements to determine approval. For some applicants, an MCA may be approved the same day you apply.
Documents Needed For Application:
•Voided business check
•Valid identification (driver’s license)
•Credit card and debit card processing statements
How Do Merchant Cash Advances Work In South Carolina?
Most businesses will find themselves needing more capital than they have at certain times. Unfortunately, most businesses do not have the time or energy needed to apply for a traditional loan, especially because there is no guarantee of approval. It could end up being a waste of time and effort.
South Carolina merchant cash advances can be applied for and funded in around one to two business days. The one caveat of this deal is having to repay the lump sum you have borrowed through daily payments based on a percentage of your credit card sales. With most forms of merchant cash advances, lenders will offer borrowers a lump sum of money to be paid back each day through an ACH withdrawal to the lender based on a pre-set percentage of the daily credit card transaction amounts.
Cost Of South Carolina Merchant Cash Advances
Lenders of MCAs measure their fees using a factor rate instead of the typical interest rate that comes with most traditional loans. These factor rates will range anywhere from 1.14 to 1.48. This amount is multiplied by the amount a merchant borrows in order to find the total fees owed. Merchant cash advances can become an expensive option for businesses that are newer or have low credit scores. If a lender deems a borrower risky, they will charge higher fees for the advance.
Cost And Repayment Of MCAs
The average time needed to pay back a merchant cash advance is around eight or nine months. However, the actual repayment term will depend on the business. The higher your daily repayment percentage is set at, the faster you will be able to pay back your advance. South Carolina merchant cash advances can be a great option for businesses needing capital quickly. They can be quite costly unless you are certain you can pay them back quickly without harming your daily cash flow.