Merchant Cash Advance’s For Cashflow Gaps

Evaluating MCA’s as a business funding option.

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Here's what you need to know.

Cash flows gaps may be a common occurrence for your business. While the extent and reason for your cash flow gap will vary based on your business model and current set of circumstances, the risk of going without cash flowing in can be daunting nonetheless. To help remedy (or even entirely avoid) this possibility, businesses look to a business loan marketplace for quick access to capital. 

There are a variety of short-term business loan products in the market. These funding methods provide you with a way to obtain a reasonable amount of cash quickly. After receiving a lump sum of cash upfront, you’ll then repay your lender over time. Short-term business loans tend to come at a higher interest rates than other loans, but the overall cost may be less expensive, if selected properly. 

Here, we will focus on one type of popular product called a merchant cash advance (MCA).

The Merchant Cash Advances (MCA):

MCAs have become popular because they provide you a cash advance very quickly. They come along with relatively higher interest rates, but you’ll be able to pay them back in short periods of time.  

Merchant cash advances are a really unique and innovative way for businesses to get funding fast. Unlike many other types of business funding, a MCA is relatively easy to obtain and the repayment terms are based on your sales, rather than a set amount of money. 

Benefits of a Merchant Cash Advance

Now, it’s time for the good stuff! There are many benefits of receiving a merchant cash advance. Some of the most notable pros include:

  • You can obtain a lump sum of cash quickly

  • Even if you have bad credit, it’s still feasible 

  • You have the freedom to use the money however you wish 

  • There’s no risk to your credit rating or assets 

  • There’s no set monthly repayment amount

What Do MCAs Cover?

Merchant cash advances are upfront sums of cash. As a business owner or manager, you can allocate your funds as you so please.

For example, the money can be used to help launch your next product, expand inventory, increase your workforce. It’s a simple business funding solution that can help to cover a cash flow gap at any point in time.

Is a MCA for My Business?

With the many business funding options out there, how do you know if a merchant cash advance is right for you?

Firstly, MCAs are most suitable for businesses that make a majority of their sales through credit card payments. This tends to happen in retail and leisure niches.

Secondly, MCAs are great for business that experience seasonality, or highs and lows of sales.  

One reason why merchant cash advances are so attractive for businesses that fall into the aforementioned categories is because the loan is paid back based on percentages of sales. This means that if you experience a slow month or one without sales, then the repayment amount still remains proportional. 

Ready to Apply?

If you’re reading this and it sounds like the right fit for your needs, then you can get complete your application today.

Still have questions? Our team at Uplyft is here to help you throughout the process!

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