What Is a Merchant Cash Advance (MCA)?
Michael P. Cannon
Principal and Managing Director at Private Client Capital Partners and Private Client Payments Group
Knowing what?financing services?you can turn to when your business runs into a snag can make a huge difference in how the situation plays out. For some business owners, the option of going through the traditional channels of obtaining a loan through a bank might not be possible. Instead, plenty of people will turn to alternative financing options in order to find the most appropriate services for their needs. If you’re currently looking for funds, then it might be a good idea to see whether a service like a merchant cash advance is the right choice for your needs.
What Is a Merchant Cash Advance (MCA)?
Though you might have heard of this type of financing service before, you might not know exactly what a cash advance entails. Essentially, an MCA works by focusing on your credit card sales. A lender that specializes in this type of advance will look over your financial records and determine how much money your business makes via credit transactions within a given period. Using this number, the lender will then offer an advance to the borrower. The repayment plan is determined based on the projected credit sales of the business. (Click Here To Learn More)