Answer to Quora: What do I need to know as an independent retail entrepreneurs who is a store owner, about merchant cash advances?
If your business needs cash quickly and has a readily ascertainable history of credit card receipts, a Merchant Cash Advance "MCA" may provide the funding you require. As one of the top small business finance companies in the country, we can provide up to $1 Million in as little as 24 hours, regardless of credit!
A Merchant Cash Advance facility can provide business borrowers with an upfront fixed amount of cash. The funding amount is based upon a percentage of the businesses credit card receivables using historical credit card receipts and bank statements to determine the initial advance. The business pays back the advance, plus a percentage, often referred to as a discount factor, from a portion of their credit card receivables plus a percentage which is often referred to as a discount factor. The remittances are drawn from the business customer on a daily, weekly or monthly basis until the obligation has been met.
Merchant Cash Advances are available for most businesses that have regular credit and debit card sales. The most popular industries include restaurants, coffee shops, liquor stores, gas stations, retail boutiques, manufacturers and hundreds of other small businesses with a constant need for cash flow. Typically no traditional collateral such as machinery and equipment, real estate or inventory is necessary to secure a cash advance however some providers may look to take a lien on business assets. The personal credit of the business owners is not factored as heavily as it would be for traditional loans. However, depending on the provider a personal guarantee may be required from the business owners.
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