Here's a more detailed look at the benefits:
1. Fast Funding: MCAs can be funded in a matter of days, sometimes even within a day or two, making them ideal for urgent needs like unexpected equipment repairs or capitalizing on time-sensitive opportunities.
2. Flexible Repayment: Repayments are typically tied to a percentage of future credit card sales, meaning the amount repaid fluctuates with your business's revenue. This can be particularly helpful for businesses with seasonal fluctuations or inconsistent sales.
3. No Collateral Required: Unlike traditional loans, MCAs usually don't require you to pledge any assets as collateral.
4. Easier Qualification: MCAs often have less stringent eligibility requirements than traditional loans, making them more accessible to businesses with less-than-perfect credit or limited operating history.
5. Versatile Use of Funds: Unlike some loans with specific restrictions on how the money can be used, MCAs can generally be used for any legitimate business purpose.
However, it's important to be aware of the potential drawbacks, such as higher overall costs (expressed as a factor rate rather than an APR) and the impact of daily or weekly withdrawals on cash flow. It's crucial to carefully research and compare different MCA providers and understand the terms and conditions before committing.
BUSINESS CASH ADVANCES ☆ SAME DAY FUNDING OPTION
💲CoreRate Funding: $15,000+ Monthly Revenue
General info
☆ Repayment Amount (Factor Rate): 1.10% to 1.25% of Advanced Amount
☆ 2 to 24 Month Terms
☆ Automatic Daily Payments
Minimum Requirements
☆ Must have online banking setup
☆ 2+ months in Business
☆ 685+ Personal FICO Score
☆ Minimal NSF's/ Negative Days (no more than 5 in any of the last 3 months)
💲FlexRate Funding: $15,000+ Monthly Revenue
General info
☆ Repayment Amount (Factor Rate): 1.26% to 1.55% of Advanced Amount
☆ 6 to 24 Month Terms
☆ Automatic Daily Payments
Minimum Requirements
☆ Must have online banking setup
☆ 6+ months in Business
☆ 550+ Personal FICO Score
☆ Minimal NSF's/ Negative Days (no more than 5 in any of the last 3 months)