Merchant Cash Advance

If you are a business owner, then you’d know exactly how difficult it is to find or gather funds for your business. You may or may not have experienced it yet but there’ll be a time when you wouldn’t be able to fund your business yourself.

In these types of situations, a business owner has different options on how he or she can acquire the funds for the business. It could be:

• Through Investors
• Friends’ and Family Members’ Funds
• Business Funding
• Lenders and Online Lenders
• Bank Loans
• Assistance from the Small Business Administration (SBA)
• Credit Union Loans

There literally are tons of different ways on how a business owner can get the funds needed for the business. One of the most underrated methods is by doing a Merchant Cash Advance (MCA).This might sound familiar to you, or this could be hieroglyphics to you. But don’t worry, we’ll define and discuss it in-depth!

What is a Merchant Cash Advance?

A merchant cash advance or an MCA is one type of business funding. It works by a company selling some of its future bills and sales in exchange for a quick lump sum amount of payment. So technically, the business that needs the funds would sell future sales to a lender. The lender will then purchase this and the borrower or the business is obliged to pay it back with a factor rate included.

It’s a quick and easy fix by raising funds if the business is in dire need of one. The company or the business just needs to provide the proof of future sales, the cashflow, as business tax return, as well as the monthly and the annual revenue of the business.

The primary downside of an MCA is the fact that there are factor rates on top of the payments. Because it’s quick and the release of funds won’t usually last for weeks, the factor rate would be quite high.

Do You Need a Merchant Cash Advance?

Determining whether or not you need an MCA depends on how urgent you need the funds. If your business needs the funs urgently and it’s an extreme situation, you might as well apply for one. But if you’re not required to have funds for your business, then it might be better for you to explore other options like bank loans, credit unions, and the SBA – just take note that they release the funds months after.

One good alternative to an MCA is by borrowing money from lenders, online lenders, and from business financing companies. They’re different because lenders usually put interest rates on top of monthly payments, or the interest would be depending on the annual percentage rate (APR).

They’re a good alternative because they release funds fast and urgently, too – and their requirements aren’t that tedious and requiring. There are a lot of lenders available out in the market but if you’re looking for the best option, then you should definitely work with us here at SoFlo Funding.

We at SoFlo Funding has created and established a reputation for being one of the best and the most dependable lending company in the market. We have interest rates that can be as low as what the SBA charges and repayment terms that can be long and convenient for all of our clients.

How Our Process Works

Just like the regular process for a merchant cash advance, our application process is simple and is easy-to-do, too! Our clients start by applying through our online application portal by inputting the loan requirement they have like the amount, what they’ll be using the funds for, etc.

Then, they’d have to fill out the details as regards their business – they would also be required to disclose what they’ll be using the funds for. This whole application time takes about 10 to 15 minutes; and it can be definitely less than that!

After 24 to 48 hours, they’ll be able to receive the confirmation of whether or not their application has been approved. From there, they can negotiate the terms with one of our senior funding managers and advisors – and the funds, they can receive the funds in about 15 to 20 days!