Understanding Merchant Cash Advances

A merchant cash advance (MCA) is a form of financing that allows businesses to obtain funds quickly based on their future credit card sales. Unlike traditional loans, MCAs provide a lump sum payment upfront, which is then repaid through a percentage of daily credit card sales, making it a flexible option for businesses with fluctuating revenue.

MCAs are particularly beneficial for businesses that may not qualify for conventional loans due to credit issues or insufficient collateral. They can be used for various purposes, such as inventory purchases, equipment upgrades, or covering operational costs during slow periods. However, it is essential for business owners to understand the costs involved, as MCAs can have higher fees compared to standard loans.

Eligibility Criteria for Funding

To qualify for a merchant cash advance through Total Merchant Resources, businesses must meet specific eligibility criteria. This typically includes having a minimum monthly credit card sales volume and a certain time in business, ensuring that applicants can reliably repay the advance through their sales.

Additionally, while personal credit scores may be considered, the primary focus is often on the business's cash flow and sales history. This makes MCAs accessible to a wider range of businesses, including startups or those with less-than-perfect credit histories.

Step-by-Step Application Process

The application process for a merchant cash advance is designed to be straightforward and user-friendly. After clicking the "Let's Get You Funded" button, applicants are guided through a multi-step form that collects essential information, including business details, ownership structure, and financial data.

Once the application is submitted, the Total Merchant Resources team reviews the information provided, ensuring that all necessary documentation, such as bank statements, is included. This thorough review process helps to expedite funding decisions, allowing businesses to receive their funds quickly and efficiently.

Frequently Asked Questions

Many potential applicants have questions regarding merchant cash advances, such as how quickly funds can be received and what documentation is required. Addressing these common queries can help demystify the process and reassure applicants about their decision to seek funding.

For instance, businesses can often receive approval and funding within a few days after submitting their application. Additionally, providing clear information about the types of documents needed, such as business bank statements and tax returns, can streamline the application process and reduce delays.