Why Every Small Business Needs A Merchant Cash Advance

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Why Every Small Business Needs A Merchant Cash Advance

June 11, 2020 Finance 0

Cash Advance for Merchants has become increasingly popular in Canada and the world. Most of us wish to take loans without the consequent difficulties of paperwork, high rate of interest, and so on. Unfortunately, this is not always possible.

Cash Advance Company for Merchants in Canada

However, if you’re a small business with limited collateral and business history, or a low credit rating, merchant cash advances may be the light at the end of the tunnel for you. Merchant Cash advances are known to be cash advances that don’t require more than a day to two to be approved.

Once approved, you can immediately fund it with almost zero paperwork involved.

Merchant Cash Advances are ideal for small businesses and companies as they have little to no eligibility standards. Additionally, if your business earns revenue largely through credit card payments- merchant cash advice can act as a helpful financing tool.

Think of merchant cash advances as short-term loans that help you tackle inventory purchases, debt payments, unprecedented bills, and more.

You’re probably thinking something so wonderful can’t be as simple- but that’s where you’re wrong. Attaining a merchant cash advance is a quick and easy process. A cash advance company for merchants in Canada issue merchant cash advances processes that occur online. These advances are almost always approved within a day or two of the application.

Most MCA companies tend to check your credit card processing statements, bank statements, and other documents like the Driver’s license before verifying your request. There are no more complicated processes involved.

However, comfort comes with a cost- as is the case with Merchant Cash Advances. Cash Advance for Merchants in Canada are known to have one of the highest capital values in the market.

Thus, where loans demand extra time and energy, MCA intends to resolve your business finance inconveniences as quickly as possible. It saves you weeks worth of waiting around for a loan that you might not even qualify for.

Cash Advance Company for Merchants in Canada


When you take up a merchant cash advance, the basis is that the provider grants you a given amount of money that is to be exchanged for a part of your daily Reddit and debit card sales in your business.  Thus, the MCA not only exhibits convenience in granting the advance but also in repayment of the advance.

When you take an advance, most MCA providers demand a connection with your bank account or credit card processor. This way, they can just as easily plug in and retrieve the repayment they require, and the entire process is wrapped up without any complications.

Being one of the quickest routes of loaning and repaying, it is not unreasonable that the MCA is deemed to be one of the most expensive options in the market.

 Most MCA’s operate based on a factor rate rather than an interest rate. Typically, these factor rates are said to range between 1.14 to 1.48 levels of deviation. Reportedly, the average repayment time frame of most MCA borrowers stands and 8-9 months. However, this time frame can be as low as 4 months or even as high as 18 months. It all is relatively dependent on your factor rate.

Most factor rates usually come high because of the efficiency of its service. As MCA providers already take a risk by loaning to low-income business, the pricing of their factor rate is usually expensive. This is further multiplied in the face of lightning-speed qualification and granting of advance.