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Merchant Cash Advances
Merchant Cash Advances or MCAs are
a unique and relatively new method financing which is provided to
certain retail businesses that accept credit in their normal
day-to-day business. The proceeds form MCAs can be used for
almost any purpose.
How It Works
Merchant Cash Advance companies
will typically audit your previous six months credit card receipts to
check for consistency. In the vast majority of cases, the MCA
will require that they also become the processor for your future
credit card transactions. Merchant Cash Advances are not loans
but much like factoring, the actual purchase of future credit card
transactions.
Merchant Cash Advances are considerable
more expensive than a bank loan due to the dramatically increased risk
involved. Instead of requiring a fixed payment each month, an
MCA will generally take out a fixed percentage of credit card receipts
with the advance being paid back in 12 months or less. If the
business provided the advance goes out of business, the MCA takes the
loss.
Typical MCA Clients
MCAs are often used by restaurants
for construction or expansion needs. Health Clubs, small retail
stores, almost any retail business with significant credit card sales
can potentially be in need of a Merchant Cash Advance.
If your business receives $25,000 or more
in monthly credit card sales and is in need of quick cash,
contact Naples Factors.
We maintain relationships with some of the largest providers of MCAs
in the nation. To find out more regarding MCAs,
contact us
TODAY!
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