MCA providers are less concerned with your credit http://www.installmentloansgroup.com/payday-loans-nh score and more interested in your credit card processing statements
MCAs are all about speed. Everything from application to money in your account is lightning fast. Approval can take less than 24 hours, and funds can be in your account in less than 3 days.
This speed comes because alternative lenders aren’t held to the same intensive regulations, allowing them to expedite the underwriting process (decreasing prices for them and hopefully for you, too).
After all, this provides more insight into how much you’ll be paying back each day. This allows startups, young businesses, and those with credit score issues to access small business financing.
However, a good credit score coupled with strong sales will score you a lower factor rate. This can substantially lower the total cost of your merchant cash advance.
The payback method associated with an MCA makes your payment schedule fluid. If you’re going through a seasonal lull or a few hard weeks, you can rest easy knowing your MCA only requires minimal payments.
That same flexibility isn’t afforded by other loans, like a short term loan or credit card payment. In those situations, your payments are due regardless of your current sales volume.
An MCA’s speed also empowers you to use it for emergency expenses, like equipment repairs, cash flow gaps, and more
Sometimes, merchant cash providers will require a minimum monthly payment or maximum repayment period, so make sure you check the fine print to avoid unwelcome fees during slow months.
With advances ranging from $5k to $400k, MCAs give you a wide array of spending power. The amount providers will lend to you will be dependent on your sales. …
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