Accelerate Your Business Growth with Merchant Cash Advance
Fuel Your Ambition, Drive Success, Partner with Kesef Capital Group for Flexible Financing Solutions!
What is Merchant Cash Advance
How It Works
Advance Amount
Upon approval, the business receives a predetermined sum of money, which is typically based on its average monthly credit card sales.
Repayment Method
Repayment is made through a specified percentage of future credit card sales. This means that during periods of high sales, the repayment amount increases, while during slower periods, it decreases.
Factor Rate
The cost of the advance is determined by a factor rate, which is typically expressed as a decimal figure. This rate is multiplied by the advance amount to calculate the total repayment amount.
Automatic Deduction
Repayments are often automated, with the lender deducting the agreed-upon percentage from the business's daily credit card sales until the advance, plus fees, is fully repaid.
Benefits
Quick Access to Capital
MCA offers rapid access to funds, often within days, making it ideal for businesses with immediate financial needs.
Flexible Repayment
Repayments fluctuate with the business's sales volume, providing flexibility during slow periods.
No Collateral Required
MCA is an unsecured form of financing, meaning businesses don't need to put up collateral to secure the advance.
Bad Credit Consideration
MCA providers typically consider the business's sales history rather than solely relying on credit scores, making it accessible to businesses with less-than-perfect credit.
Use Cases
Working Capital
Covering day-to-day expenses, such as payroll, inventory restocking, or utility bills.
Business Expansion
Funding marketing campaigns, purchasing equipment, or expanding operations.
Emergency Expenses
Dealing with unexpected costs, such as equipment repairs or unforeseen business disruptions.
Seasonal Cash Flow Management
Managing cash flow during seasonal fluctuations in business activity, ensuring consistent operations throughout the year.
Considerations
Cost
While MCAs offer quick access to capital, they often come with higher fees and interest rates compared to traditional loans. Businesses should carefully evaluate the overall cost before committing to an MCA.
Impact on Cash Flow
Since repayments are based on a percentage of credit card sales, businesses must consider how fluctuations in sales volume may affect their cash flow.
Vendor Relationships
Depending on the MCA provider, businesses may need to establish new relationships or adjust existing ones, which could impact vendor dynamics and terms.
Regulatory Compliance
Businesses should ensure compliance with relevant regulations governing MCAs, including transparency in disclosure and adherence to fair lending practices.
Get Started Today
Eager to Kickstart Your Business?
Submit your application today and receive approval within a day. We provide a range of funding options tailored to your business requirements.
Need More Information Before Deciding?
Unsure about the right funding option for your business? Our dedicated team is on standby to assist you in identifying the most suitable solution.