FAQ’s – Merchant Cash Advances

What’s a Merchant Cash Advance?

MCA’s are a form of business funding which allow you to sell future credit card sales to a company in exchange for money up front. It acts like a loan in the sense that you have to repay it. Repayment is in the form of a fixed percentage of credit and debit card sales, and it’s automatically deducted on a daily basis.

Why do people like Merchant Cash Advances?

They allow you to get money in a matter of days, offer a lot of flexibility in terms of payments, and also have exceptionally high acceptance rates. You also never have to worry about late payments with MCAs, solely because they are automatically done on a daily basis.

How much does a MCA cost?

Applying for a Merchant Cash Advance is free. However, if you get approved and choose to move forward, there can be a number of small, variable fees that you may need to pay. We’ll give you the scoop on them when you get approved.

What companies are eligible for an MCA?

To be eligible for most Merchant Cash Advances, you will need to have been in business for at least 6 months, and make an average of $10K in credit card sales. You have to have at least 6 months’ worth of merchant processing statements and 1 month of bank statements to qualify. Lastly, you have to have a physical business location. In some rare cases, we can offer Merchant Cash Advances to companies that have only been in business for 3 months, but restrictions do apply in this term.

What if I don’t meet the qualifications?

We do have other forms of funding that may be better suited to you. Check them out!

I already have taken out an MCA, but I need more money. Can you help? As long as you’ve paid off at least 30% of your current Merchant Cash Advance, there’s a good chance that we can offer you another one.

I already have an SBA loan. Can I still take out an MCA?

Absolutely. As long as you meet the qualifications we mentioned in Question #4’s answer, you can still get a Merchant Cash Advance.  My business credit is terrible. Can I still qualify? Credit scores don’t matter when you are taking out a Merchant Cash Advance, so you can definitely still qualify. However, we would suggest you look at our credit building program as well as our personal credit repair services. It never hurts to spiff up your credit!

How much can I receive through a Merchant Cash Advance?

Typically, you will be able to get as much as 6 months’ worth of credit card sales through an MCA. If you make $20K in card sales a month, that means we can offer you up to $120K.

How long are the terms? Terms can typically range from 3 to 18 months, depending on a variety of factors. These factors include how much you borrowed, how much debt you owe to other lenders, as well as how well your business does.

Do I have to switch payment processors?

Not usually. If you do need to switch in order to get approved, switching will be done at no cost to you. It’s also really easy to do, and you will likely pay a much lower merchant services fee.

Are there any limits to how I spend the money?

Nope. It’s your money, and you can use it as you want to use it.

Can I pay my balance early?

Of course! Early payments are never an issue.

Do I need an attorney’s assistance?

It’s never harmful to speak with an attorney regarding personal and business matters, and often times, it may be the best thing you can do if you think that an attorney’s advice can help you. Although we aren’t a law firm and we cannot provide anyone with any legal advice, you are more than welcome to speak with an attorney that we use for our company. We truly want to get familiar with our clients, and help them in any way we can. Simply send an email to info@thecreditexpress.org and we’ll be sure to forward it.

Still need help?  If you have a question that isn’t answered here, or if you feel like you could use advice when it comes to the best route of financing for your business, we are here to help you make the best choice for your company!  You may call us at (678) 983-4555 or email: info@thecreditexpress.org.  You’re also more than welcome to visit our office.  Evening and weekend appointments are available.