Also known as a merchant cash advance, credit card processing loans are small, short-term funding which give a business or a retail merchant the money they require for any business expense. Small business credit card processing loans are typically based upon the credit card sales of your business. Basically, you ‘sell’ a portion of the future credit card sales so as to acquire capital immediately.
Merchant cash advance (also abbreviated as MCA) providers evaluate the risk, and weigh credit criteria much more differently than the traditional banks. They usually look at the daily credit card receipts to determine if your company/business will be able to repay the money in a timely manner, and then funds are given. The MCA provider will give you a lump sum, which will then be repaid automatically using a certain percentage of the daily credit card receipts.
Benefits of Small Business Credit Card Processing Loans
1. Straightforward Application Process
Applying for small business credit card processing loans is easy and can be done entirely online. All you need to do is complete the MCA application online form, and upload the required supporting documentation, such as your bank accounts, business tax returns, and credit card processing statements.
2. It Will Not Affect Your Credit
Securing a credit card processing loan will not negatively affect your business’ credit. Well, this is because you are not actually taking out a loan, rather, you are simply selling the future credit card sales for some capital. In addition to this, many providers do not require you to have an excellent credit score in order to qualify.
3. There’s No Collateral Needed
Other than your credit card sales, there’s no collateral needed for you to secure small business credit card processing loans. The MCA provider is only interested in your predicted future credit card sales, and not your home or other valuable assets.
4. It’s Fast
Access to funding is almost instantaneous because the process is simple and can be done online. In fact, advances are usually made within one to two days. It is one of the fastest forms of business financing.
How to Get a Merchant Cash Advance?
1. Apply for the Advance
You will need to provide at least 3 months of your credit card processing statements, along with a signed credit application.
2. Offer Review
The MCA provider will review your statements so as to determine your approval amount, fees associated with the loan, terms, and rates.
3. Receive Funds
If you accept the offer that has been given by the MCA provider, the said provider will then send you the contracts and any other stipulations. Once the contracts are signed and stipulations are met, you will receive the funds.
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