A business cash advance, also known as a merchant cash advance (MCA), is a financial product that is fast to underwrite and approve, and where credit score has little impact. It is not a loan. It is a purchase of a portion of a business’s future sales. Business owners get cash up front, and then repay their advance as a percentage of the sales they make over time, allowing them to get cash fast and expand their business without damaging their cash flows.
A cash advance is based on a business’s sales, as demonstrated in their most current three months of bank statements. That, and a short application, is all business owners need to submit in order to begin a relationship.
Often, after the initial advance is over 50% repaid, they become eligible for another round of financing, with a higher approval, better rate, or both. Over time, they are able to grow their financing options along with their business.
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