Is Merchant Cash Advance Right For Your Business?

25 Nov 2020

We’ve all been hit hard by the pandemic. Let’s see why merchant cash advance is the answer to your problems.

6 Benefits of Merchant Cash Advance For Your Business

1. Very Quick

When you apply for a merchant cash advance with us, your application often gets approved within a couple hours. You also don’t have to deal with heavy paperwork. We look at your business’s daily credit receipts to determine if you can repay the amount in time. 

2. Easy Repayment

MCA provides easy repayment options. 

  1. You can pay a particular percentage of your future credit card sales per month, including the principal and the license fee amount or...
  2. You can pay a fixed sum of money every day or every week, including part of the principal and fee amount, which is fixed irrespective of the revenue your business is extracting. These daily or weekly deductions from your bank account are commonly known as Automated Clearing House (ACH) withdrawals.

The second option is preferred by many, known as ACH merchant cash advances. It’s best for businesses who do not extract revenue from credit card sales. This way ACH merchant cash advance is accessible for businesses who don’t qualify for traditional MCA.  

About Greenpoint Capital

We have investors and partners that can fund as high as $10,000,000 for our Merchant Cash Advance program.

The partners have over 40 years of combined experience in the finance industry and can handle any situation with every type of business owner.

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3. No Need for Collateral

You don’t need to provide any collateral for MCA. It’s relatively an easy way to receive monetary help from finance institutes. Bank loans affect your credit ratings but MCA is dependent on your credit card sales in the future.

MCA doesn’t affect your credit score. There is no fear of losing collateral, no matter how your business is performing.

4. It’s Different From A Business Loan

A merchant cash advance is different from a small business loan. You’re asking for money by showing promise of future profits in your business. Instead of asking for payments to cover the advance, we’ll automatically deduct a small percentage of your credit card sales until the recovery is completely done. 

Small business loans can be repaid from funds outside your primary bank account, rather than withdrawing from your daily or weekly sales revenue.  

5. How It Works

Say, your business requires $20,000 and you agree to pay back $26,000 under the merchant cash advance program. This means that the factor rate is 1.30. 

Moving ahead, you agree to have 20% of the business’s credit card sales transactions withheld by us till the repayment is completed. If on an average, your business earns around $15,000 a month in credit card sales, you’d have to pay $3000 or 20% of your earnings as monthly payments.

6. When Your Sales Are Down, Your Payment May Too

When the repayment amount is based on your fixed monthly sales percentage, the schedule can be readjusted based on how well your business is doing. 

Is Merchant Cash Advance Good Fit For My Business?

Merchant cash advance is beneficial to small businesses as you get a flexible repayment schedule and you can pay back your amount when your business is doing good.

If your business is doing pretty well, but your credit score is damaged or if you have a bad credit score, a merchant cash advance is really a good option for you and your business.

We can help all businesses in all 50 states and Canada. Business owners can apply online and we can handle everything electronically if they can’t step foot into our office.

Call us today at (866) 714-7336!