MCA Qualification a Breeze
The first difference between a merchant cash advance and traditional loan is the qualification process. MCA vendors will take you on when many big bank lenders won’t. According to the Techspice blog, credit history has no bearing on whether or not you qualify for an MCA. Because you’re trading a portion of future sales, all you need to show is that your business is profitable. MCA vendors will do the rest.
MCA Versatility Confirmed
The MCA can be used for just about anything related to growing your business. And repayment is on a sliding scale that’s sensitive to the seasonal ebb and flow of your particular industry. AllBusiness reveals these features of the MCA that attract a wide range of companies:
- Repayment tracks the revenue trend of the merchant's business
- Promotes healthy cash flow within the business
- Payback is automatic based on a set percentage of sales
MCA Pitfalls Exist
Just like with any financial arrangement, you should take care as to who you align yourself with. There are unscrupulous MCA vendors out there who know how to take advantage of you. The Dallas News reminds you to take the time to filter out the notable merchant cash advance vendors to avoid costs that can reach 28 percent of every dollar.
2 comments:
MCA danger may lurk, but so it does with any financial arrangement. If an MCA is truly legit, they'll be listed with the Better Business Bureau and have a track record of satisfied customers to prove it.
New legislation is aiming at bringing the MCA opportunity into the limelight. Once spoken in the same breath as payday loans, MCAs deserve credit as an alternative financing form for receipt-driven businesses.
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