Why Your Business Needs a Merchant Cash Advance

Popularly known as MCA, the merchant cash advance offers a quick loan to businesses. Think of it as a paycheck advance that goes to businesses rather than individuals. Although, it is increasingly becoming popular among establishments with a steady volume of sales. Most business owners aren’t entirely sure of whether or not to get a merchant cash advance. Well, below is every reason why your business needs this type of loan.

1. Quick and Easy Application

With this type of funding, an establishment can get the money they need within a couple of days. Understand that your sales history is the most important consideration, both short-term and long-term. Some lending companies will have the funds ready within the day of application, thus increasing convenience and reliability.

Demonstrating that you have a viable business is all you need to qualify. Ensure you have all the documents that can prove a high volume of sales within the year. Getting your MCA will, therefore, be quick and easy.

2. Flexibility

With MCAs, you get to experience all the advantages of flexibility. Understand that you get to choose how to use the funds, which is a huge bonus. Other types of funding will usually need a detailed plan on how you will be spending the money. However, MCAs let you have full control over the funds and your business. 

You also get lots of options when it comes to payment plans. For instance, your repayment plan can be linked to the percentage of daily sales. What this means is that you won’t need to pay a lot of money when the sales are low. Understand that businesses with flatulating sales can significantly benefit from the flexibility of MCAs.

3. No Collateral

MCAs are unsecured loans, which means that they don’t tie up any business assets as collateral. If you are a business with limited assets, a merchant cash advance is an excellent choice. All of your existing assets remain operational and functional.

Understand that MCAs will also not affect your credit ratings, unlike commercial loans. Because your MCA depends on the future sales of your establishment, they are never present on your credit report. You can, therefore, maintain your credit rating and apply for any other loans.

4. Fast Cash Access

Commercial loans take a lot of time to process once approved, sometimes up to a few months. MCA funding, however, is usually available within a few days after approval. You do not need to file a lot of paperwork during the application, making the process fast and easy.

Fast cash access is an important consideration, especially when your business needs immediate funding. Understand that getting quick access to cash might be the difference between keeping your business afloat or shutting down.

5. High Approval Rate

Compared to other sources of business funding, MCAs have a much higher approval rate. The advances are hardly denied because there is always room for negotiation. You can always recalculate the interests or change your payment plan should you run into a problem.

Struggling businesses usually find it challenging to get a regular commercial bank loan. If you find yourself in such a situation, MCAs are your best bet for getting your business back on its feet. You also get to negotiate the payment plans and duration of the loan to suit your needs.


Are you looking for fast and easy business funding to help you meet your goals? MobyCap includes a team of dedicated professionals that will help you attain funds in as little as one day. To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

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