Merchant Cash Advance

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Whether your business has poor credit, has only been open for a short while, or doesn't have valuable assets to use as collateral - a Merchant Cash Advance (MCA) is still in your reach.

What Is A Merchant Cash Advance?

A Merchant Cash Advance is the most accessible funding option on the market. This financing option allows you to turn future credit or debit card sales into working capital that you can use today. It is an easy and quick way for small- to mid-sized businesses to obtain an upfront sum of cash even if they lack collateral or have a poor credit score.

Merchant Cash Advances (MCA) are an excellent alternative to business owners with a low credit score with short-term cash gaps. If you need working capital instantly, our Merchant Cash Advance Program comes with faster approvals and funding than any other loan.

How Does A Merchant Cash Advance Work?

With a Merchant Cash Advance, Opportunity Business Loans will give you a lump sum in exchange for a percentage of your future debit or credit card sales. The loan can be paid automatically by debiting the agreed upon daily or weekly amount from your business’ merchant bank account.

This is different from standard loans because it works on pace with your business. With a standard business loan, you will be forced to make fixed payments each month no matter how many sales your business gets. However, which a Merchant Cash Advance, an agreed amount is automatically deducted from the daily sales generated on your merchant account until the advance is paid off.

So the more sales your business has, the faster your loan is paid off. If your sales are lower one day, you won’t be expected to pay the same amount. Instead, the payment will be lower as well.


Features

  • Approval Amount: $20,000 – $1,000,000
  • Term Length: 3 – 18 Months
  • Minimum Credit Score: None
  • Monthly Revenue: $20,000 avg. 
  • Time in Business: 4 Months
  • Cost of Capital: 1.20 – 1.49 Factor Rate
  • Time to Approval: 24 Hours
  • Time to Fund: 24 Hours

Benefits

  • Only 3 Documents required for approval
  • No collateral required
  • No credit score minimum
  • Same-day Funding and Approvals
  • Payments work with the pace of your business
  • Approvals up to 150% of average monthly deposits

What Is A Holdback?

A common term that you might hear when dealing with a Merchant Cash Advance is “holdback.” This is the percentage of daily credit card sales applied to your advance.

The holdback percentage is usually fixed until the advance is completely repaid. Due to the repayment being based on a percentage of daily sales, the most credit card transactions a business does, the faster they are able to repay the advance. 

Most MCA providers charge what is called a “factor rate.” Unlike traditional loans, a factor rate isn’t amortized over the course of the advance.

Loan Repayments and Costs

Since Merchant Cash Advances use factor rates, the repayment process starts as soon as the loan proceeds are deposited into your account. 

A conventional bank loan comes with the risk of losing collateral or even hurting your business’ credit score if you make just one late payment. Unlike bank loans, MCAs do not affect your credit score since it is a sales transaction. Additionally, collateral is not required to secure the advance. 

This is a low-risk, fast way of getting the funding you need to overcome any short-term business expenses. 

Merchant Cash Advances vs. Small Business Loans

The main difference between MCAs and Small Business Loans is a Merchant Cash Advance is considered a purchase and sale transaction. In this case, the financing company purchases a portion of the business’s future revenue stream at a discount. 

In contrast, a Small Business Loan is when the financing company lends money to the borrower and the borrower must repay the loan with fixed payments.  

Who Can Apply For A Merchant Cash Advance?

Opportunity Business Loans offers Merchant Cash Advances to small and medium businesses in every industry. The most common businesses to apply for MCAs are:

Wholesale Businesses
eCommerce
Dental Practices
Retail Stores
Healthcare Facilities
Auto Repair Shops
Restaurants
Construction Companies

Advantages of Merchant Cash Advances

There are various ways in which a Merchant Cash Advance can help your business. The following are the most popular benefits that will help your business boost profits, maximize growth, and increase market penetration.

1.
Fast Funding
With a cash advance, you can get approved and have the capital you need in your business bank account within 24 hours.
2.
No Credit Checks
Opportunity Business Loans does not require a good credit score to get approved for a cash advance. Get approved today with low or no credit.
3.
Industry Funding
We cover small and medium businesses in every industry out there. No matter what service your business provides, we are here to help.
4.
Easy Payment Plan
Merchant Cash Advances do not come with fixed payments. Instead, your payments will go up and down depending on how many sales your business gets.
5.
No Limits
There are no limits on how you can use your newly secured funding. Whether you have unexpected expenses or are purchasing new furniture, we've got you covered.
6.
No Collateral
Our cash advances do not require collateral. This means you don't have to risk your assets in order to get approved for the funding your business needs.

Get Business Financing Today

In just 3 easy steps, you can explore your financing options.

Step 1: Just one simple application

Start by filling out our fast application where you can tell us about you and your business. With just one simple application, you'll have access to over a hundred different lenders.

Step 2: Match with the best lender

After submitting your application, our advisors will evaluate your business profile and match you with lenders who can offer the best financing for your business.

Step 3: Select and receive the best financing

Review all your different financing opportunities with an advisor at hand. With so many opportunities at your door, you’ll find the best one to meet all your business needs.

Secure The Funding You Need Today

If you have any questions about Merchant Cash Advances for your business, give us a call today. Opportunity Business Loans has a team of friendly customer service representatives that are available 24/7 to assisted you with any questions or concerns that you might have. Don’t hesitate to get the funding you need to take your business to the next level!

Apply Now

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