mobiloans.com

mobiloans.com

Merchant Cash Advance (MCA), also called business cash advance, brings reprieve to various businesses that do not get approved for loans because of their riskiness, poor credit score, lack of acceptable collateral, or newness in the industry. With all the advantages that MCA brings, business owners would still prefer a loan or a credit line. This is because the interest rates charged by MCA providers can amount to 30%-200% APR - an ill affordable cost for any commercial enterprise.

Selling points for merchant cash advance

MCA providers are at pains to convince customers that business cash advance is not a loan. It is a purchase of your future credit card sales. Therefore, it does not involve the rigmarole of acquiring a loan. The advance gets transferred to your account in a week or so; there's no collateral; the retrieval rate is a percentage of your monthly sales, therefore it fluctuates with the business revenue; no pressure; minimum paperwork; and high approval rates.

At the same time, there's also high retrieval rate, short term of retrieval (typically 9-12 months), and in many cases a contract that is as broad as it can get.