Are you starting a business and need some cash to get your startup off the ground? Merchant cash advances are a new and exciting way to get the funding you need in a fast and effective way. But, you may be wondering how they can help you grow your startup into a successful business. Below, you will find everything you need to know about merchant cash advances for startups and what they can do for your business.
What is a Merchant Cash Advance?
A merchant cash advance is a form of financing made available to businesses based on their future credit card sales. It is a quick and easy way to obtain funding for your small business. It does not require you to put up any collateral or go through a lengthy application process as a traditional business financing loan would.
The amount of money you can receive from an MCA depends on the revenue of your business and the type of business you run. Most MCA providers offer between $10,000 and $2 million, but some have been known to extend larger amounts as well.
Why Should You Use an MCA for Your Start-up?
Flexible Amount and Terms
A merchant cash advance for start-ups is easy to obtain and can be paid off in as little as a few months or as long as several years, depending on the amount that you are borrowing and the term length that you choose. Unlike traditional loans, there are no fixed payments, and you can structure your payments around the needs of your business.
Competitive Interest Rates
Merchant cash advance interest rates are generally lower than those of a traditional bank business loan or other financing options like credit cards and lines of credit. This makes them a great option if you are looking for funding but want to keep your monthly payments as low as possible.
Building Credit History
Paying merchant cash advance providers on time will help you build a solid credit history that you can use in the future when you apply for other financing opportunities. Future lenders will see that you have a history of repaying your debts on time and will be more likely to approve your application.
Easy to Acquire
Acquiring a merchant cash advance is quick and easy in most cases. You can get started right away without having to go through a lengthy application process or waiting for approval before you getting the funding that you need.
Funds can Be Used for Anything You Need
Merchant cash advance providers don’t usually restrict how you use the money they provide you. They understand that every business is different and may require different funding to help them grow and operate effectively. It can be used for inventory purchases, marketing campaigns, or other purposes.
At Whitestone Fund, our professional business loan agents in NYC can create a customized financing plan for your start-up. Whether you’re considering taking out a standard business loan or a merchant cash advance, we can guide you and enable you to take out loans of up to $1,500,000.
Contact us today.