Who Should Consider Merchant Cash Advance Business Loans

Financial service

A merchant cash advance (MCA) is an easy and quick way to get money without collateral and with bad credit. They are business loans that work differently than traditional options. In most cases they can be approved and funded in hours or days, instead of weeks or months. They consider your credit card receipts for the past 60 days and give you a lump sum based on those numbers. You use the credit card transactions to pay back the loan. If you receive more credit/debit card transactions that day, you’ll end up paying a larger amount, but if you have fewer sales that day, you pay less.


While this is a different option and can be beneficial, you will pay more, and they can get expensive. The fees you pay can be up to 80 percent or as low as 15 percent. However, they use a factor rate to measure fees, which ranges from 1.14 to 1.48. The amount you borrow from them is multiplied by your factor number to figure out how much total you will pay back.

Even though it is a more expensive route, in the long run, you will be paying different amounts each day, depending on the amount of credit card transactions you have. If you have none, you pay nothing that day. It can make it take longer to pay back, but you usually get eight to nine months to pay it in full. However, it could be shorter, so you need to talk with the company to find out more before making a final decision.

Who Qualifies

Almost anyone who cannot qualifies for a bank loan can be eligible for an MCA, as long as you have 60 days of credit/debit card transactions. Small businesses or start-up companies can benefit from these options, especially if most of your revenue comes from credit cards. For example, restaurants and retail shops will regularly use these payment methods, and customers will take advantage of it. Therefore, these companies are the best option for an MCA.


You can use your money for anything you want. Most loan companies limit what you can do with the money you get from them. For example, you may be able to use it for equipment or inventory, but may not be able to pay off existing debt. You also won’t have monthly payments or minimums. You’ll be paying a percentage of your transactions, so each day may be different.

Merchant cash advance business loans are an alternative to traditional loan options. Visit Biz4Loans today to learn more or cal l us at (888) 943-1497 for your next loan.

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