Small business owners face a lot of difficulties while it comes to getting funds for their business. Most of the financing companies are not willing to provide them funds due to their low credit card scores or trust issues. It becomes hard for small business owners to prove themselves trustworthy. And they obviously need capital to survive in this business world. Luckily, MCA is one such unconventional method that provides you with funds with minimum requirements.

Quick Look At MCA

Merchant Cash Advances or MCA is an easy funding method for providing quick funds to small business owners. It is an agreement between the business owner and the MCA funds provider to repay the fund in exchange for a percentage of future debit card or credit card sales. 


Though merchant cash advances have higher interest rates, it has numerous benefits which make it worthy. In this, we will look at some of the benefits of merchant cash advances.

Easy application process

Applying for merchant cash advances is an easy process. It depends on the paperwork for how fast you will get the fund. While applying for the funding you need one or two pages of documents. The document should have a tax ID, security number, and other business-related information. Once the application is accepted, the company directs the fund into your account.

Fast funding

The traditional method of getting funds takes a longer month. You may have to wait for several months for the approval of your application. This is not the case with merchant cash advances, it provides you funds as soon as possible. Usually,  within 24 hours to 2 days, money is transferred into the account. If you want quick access to the fund, then merchant cash advances are the one for you.

Easy way to pay

It totally depends on how you would like to repay. Unlike a traditional method where you have to make a monthly payment, MCA gives you flexibility. You can repay daily, weekly, or monthly. You will have to repay the merchant cash advances fund based on the percentage of your credit and debit transactions. If you are doing good in your business and you are capable of paying it at once then you can get rid of it early. Or if your business is not doing well and has a rough month, they will take a small percentage which will not impact your business. You can even extend the time of repayment.

No credit checks

Banks that follow the traditional methods require a good or excellent credit card score. Usually, the credit card score of any small business should be more than 700 in order to get eligible for these funds. But there is no such scene in the case of merchant cash advances. It provides you cash in exchange for your small percentage of future credit or debit card sales. No credit check is required while applying for this fund. It is a good opportunity for many small business owners to get advances for their business.

Higher approval rate

Banks providing funds to small business owners have some strict rules and conditions and complicated paperwork. Whereas merchant cash advances providers only require to know that the applicant makes a certain amount in the business credit and debit card sales per month. They do not look at your credit card scores and your business history. So the chances of getting approved for MCA funds are higher. 

Use the money the way you want

Once you receive the fund, the provider has nothing to do with it. You can invest the money however you want to. You can use it to pay off your debt or for any personal purpose. Merchant cash advances providers are only concerned to get the repayment other than that they do not interfere in your business. This is the main factor for the popularity of merchant cash advances among small business owners. 

There is very little risk

Other business financing methods are more likely to require you to sign on your assets for a security purpose in case you do not pay them back. A credit card is also put on the line. Merchant cash does not require any such conditions. They do not force you to put your assets or credit card on the line. As there are no fixed fees in MCA, there is no fear of penalties on non-payments as the small percentage of credit or debit card sales is automatically withdrawn by the MCA funds provider. You are likely to be at lower risk with MCA.


Small business owners are often under the pressure of maintaining cash flow and growing their business. The biggest task for them is getting finances for their business. Merchant cash advances provide flexible funds and may turn out to be the most suitable method of providing quick access to the funds for your business. MCA may not be a great option for all but they have numerous perks. Before applying for MCA funds you can go through it and find if it is the right choice for your business or not.


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