In today’s tough economical times small business owners have had to really make hard decisions to stay ahead of the game.  One valuable practice for small business owners is to be able to have cash freed up for various reasons.  The reason could be inventory, expansion, repairs, advertisement and payroll.  This is why the MCA has become such a great and valuable tool for the small business owner.  This is done when the merchant cash advance provider purchases the business owner’s future credit card sales.  The provider will “advance” the merchant up to $500,000, upfront and then, instead of requiring that the merchant make fixed monthly payments, the provider will automatically deduct a small percentage of the business’s daily credit card sales.  With this method, the borrower only pays down his/her business cash advances when his/her business makes sales.

Small business owners who’ve exhausted all other routes or who simply want to take advantage of a simple and easy business funding method are encouraged to take advantage of the benefits that business cash advance provides, such as:

• Can use funds anyway they choose
• Approved in 48 hours or less
• Can be funded in 5-7 days
• Eligible to renew advance in 3-4 months

It’s been my experience that if the business owner is discipline in how he spends the advance and it’s used to enhance the business model than that is where a business owner is able to really leverage the funds they receive. 

Cash flow is:

• The movement of cash into or out of a business
• The excess of cash revenues over cash outlays in a given period of time
• The cash, as opposed to the profit, generated by a business

However you put it, cash flow is an important part of any small business and is therefore, much-needed by small business owners especially when the banking institutions aren’t lending to solid small business owners.

So how does one go about increasing cash flow?  First, the business owner must find a business funding method that is suitable, preferably one that offers various benefits, such as the Merchant Cash Advance.  The credit card advance allows small business owners to optimize their business’s daily credit card sales, turning them into up to $500,000 in business funds.

Based on monthly credit card sales, is how a merchant is advanced a business owner. Then, instead of requiring the merchant to make fixed monthly payments on the advance, a small percentage of the business’s daily credit card sales are automatically deducted, until the entire advance is repaid.  This usually takes about six to eight months. 

As mentioned in our previous blog the advantages of a MCA are noted below.

• Unsecured
• 48-hour approval
• Funding in as little as seven business days
• Minimal requirements
• Flexible repayments
• Renewal opportunities every three to four months

With the economy taken a dive the past 24 months no business types have taken a beating more than the mom and pop small business.  The mom and pop business has been for years the back bone of this great capitalistic society and today 99% of all financial institutions will not even look at small business who's applying for a business loans.  That is where the MCA or Merchant Cash Advance has stepped up and creative a means for small business owners to get their hands on some financial help based on how much their business is processing in Visa, MC and discover card.  Below you will find 8 key points as to why the MCA is such a great offering to the small business owner and also why so many merchants are applying for this product.

1. It’s unsecured: No collateral to qualify.

2. It can be renewed: After 80% pay back of the advance the merchant can renew for a new amount and advance.

3. Merchants are can be funded in as little as 5 business days: Please note that Merchant must turn in a complete application packet to be funded in 5 days.

4. There are no restrictions on how the funds can be used: Merchants can use their advance for payroll, inventory, a line of credit and cash flow.

5. Easy requirements: A merchant must have owed his/her business for at least six months, have no unresolved bankruptcies, have at least one year remaining on the business lease and process a minimum of $4000 in monthly credit card sales.

6. Applicants can be approved in 48 hours: Most providers will update an applicant on the status of his/her application only 48 hours after the application is submitted.

7. Merchants can get up to $200,000: Funding is dependent upon a merchant’s monthly credit card sales. However, merchants can potentially receive up to $200,000 for their businesses at a time.

8. Repayments are flexible: We deduct a small percentage from daily credit card sales to repay the advance. With this method, the payments go with the flow of the business.