Month: September 2022

Debt doesn’t have to be a scary word, especially in the business world. Although you need to be mindful not to carry too much debt, borrowing money can also help your business succeed. Here are a few ways you can use an MCA to meet your current business needs or expand your operations.

Inventory Needs

As a business, you need products to make sales. Buying inventory in bulk can save you money through discounts, but it can use up most of your capital. Instead of depleting your cash reserve, you can use an MCA to stock up, update your product lines, and meet customer demand.

Unexpected Costs

When emergencies and unanticipated expenses arise, they can wreak havoc on a business’s cash flow. An MCA offers a way for your company to access cash quickly. It’s an excellent option for short-term relief so you can take care of your needs promptly.

Pandemic Assistance

Short-term relief has been essential for business owners during COVID19. Some business owners have had to buy expensive PPE to keep staff safe, while others have experienced a change in revenue. If you’re experiencing hiccups in your business cycle due to coronavirus, you may be eligible for a pandemic loan.

Making Payroll

Finding the right talent is half the battle of running a successful company. Having to let staff go prematurely can hurt a business’s bottom line. Financing helps owners avoid unnecessary layoffs and furloughs.

Purchasing and Renting Equipment

Getting equipment can be expensive. To avoid eating up cash reserves, owners have the option of financing their purchase rather than buying machinery out-right. Using a merchant loan can help you avoid tapping out your cash buffer. That way, you still have a financial safeguard for the ups and downs that come with running a business.

Commercial Rent

Maintaining a physical store location often comes with a whole slew of additional fees and expenses. When revenue temporarily dips, additional funds can help you make rent on time.

Operational Costs

Working capital refers to everyday business operating expenses, such as rent, wages, and utilities. An MCA can help you catch up on temporary cash flow gaps so you can pay your rent and bills on time to avoid late fees or have enough money to pay your employees.

Growth and Expansion

You can also use borrowed funds to grow and expand your business. Whether you need to purchase equipment or hire new staff members, you can use an MCA to make it happen. Invest in your business and stay ahead of the competition.

Taxes

Sometimes, owners run into the issue of owing more than expected come tax season. When in a bind, MCAs are a good option for bridging short-term cash flow gaps. Instead of using your nest egg to pay the IRS, you can repay owed funds with a portion of your future sales.

Onboarding Employees

Bringing new staff members on is no cheap feat. Business cash advances can be used for training hires and securing top talent. Investing in the right employees can help small businesses achieve larger initiatives.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Funding should never stand in the way of your business concepts and goals. After the insane past few years, it might seem to be more difficult to get the funding you need to grow your business, but after speaking to our financial professionals, you will have options for getting up to $5 Million Dollars in funding. Sounds like a dream, huh?

If you are trying to jump into some of those businesses that require a little more funding to get started – restaurants, transportation companies, auto repair shops ,you could benefit from a Merchant Cash Advance that could provide up to $5 Million Dollars in funding for your business. 

What Is a Merchant Cash Advance?

A merchant cash advance (MCA) provides a business cash upfront in exchange for a percentage of its future sales. It’s an alternative financing option for business owners to get funding without collateral or personal credit requirements. An MCA is also called a credit card processing loan because it’s commonly utilized by companies that accept payments through a business merchant account.

As the name suggests, MCA isn’t a loan but an advance based on a company’s creditworthiness, future sales, and past debit card and credit card sales. When you apply for an MCA, you and the lender agree on an advance amount, a payback amount, and a holdback percentage. The agreed-upon holdback percentage is withheld from your daily sales as payment and the holdback percentage will apply until your balance is paid in full.

The payback amount will depend on a factor rate set by the lender based on their risk assessment of your company’s creditworthiness. The factor rate is inclusive of fees and interest rates; you multiply the cash advance by the factor rate to get your total repayment amount. The higher the rate, the higher you pay.

Repaying an MCA back depends on your daily revenue. Thus, with more sales, you can pay back the advance faster. You’re not obligated to pay more if you’re experiencing low sales but it does prolong the repayment period.

What Types of Businesses Use Merchant Financing?

Merchant financing is best for businesses looking to fund a profitable opportunity to generate revenue, like the bulk purchase of quick-turnaround inventory. An MCA is also a great financing option for companies that are borrowing to expand their operating capacity through the acquisition of machinery or to bring in extra help during peak season. Businesses that utilize merchant financing include:

• Retailers, distributors, and suppliers
• Transportation companies
• Service-based businesses, like hair and nail salons
• Bars and restaurants
• Specialty trades
• Auto repair shops

An MCA is a great option for businesses that process a high volume of credit card transactions. Before taking on any business financing, make sure you understand the costs associated with your loan. In addition, ensure you have enough cash flow to make payments, especially since an MCA needs to be paid back daily.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Got a big business concept brewing but worried about the funds it takes to get it moving? With all the business owners pivoting into new and more profitable industries, and people looking to make a career change and take the leap into owning a business, funding should never stand in the way.

Got a big business concept brewing but worried about the funds it takes to get it moving? With all the business owners pivoting into new and more profitable industries, and people looking to make a career change and take the leap into owning a business, funding should never stand in the way. 

After a pandemic that has caused a financial disruption across the board, many business owners are trying to find new ways to get the funding that they need to put their business plans into action. Especially if you are trying to jump into some of those businesses that require a little more funding to get started – restaurants, transportation companies, auto repair shops. For these bigger business plans, you could benefit from a Merchant Cash Advance that could provide up to $5 Million Dollars in funding for your business.

What Is a Merchant Cash Advance?

A merchant cash advance (MCA) provides a business cash upfront in exchange for a percentage of its future sales. It’s an alternative financing option for business owners to get funding without collateral or personal credit requirements. An MCA is also called a credit card processing loan because it’s commonly utilized by companies that accept payments through a business merchant account.

As the name suggests, MCA isn’t a loan but an advance based on a company’s creditworthiness, future sales, and past debit card and credit card sales. When you apply for an MCA, you and the lender agree on an advance amount, a payback amount, and a holdback percentage. The agreed-upon holdback percentage is withheld from your daily sales as payment and the holdback percentage will apply until your balance is paid in full.

The payback amount will depend on a factor rate set by the lender based on their risk assessment of your company’s creditworthiness. The factor rate is inclusive of fees and interest rates; you multiply the cash advance by the factor rate to get your total repayment amount. The higher the rate, the higher you pay.

Repaying an MCA back depends on your daily revenue. Thus, with more sales, you can pay back the advance faster. You’re not obligated to pay more if you’re experiencing low sales but it does prolong the repayment period.

What Types of Businesses Use Merchant Financing?

Merchant financing is best for businesses looking to fund a profitable opportunity to generate revenue, like the bulk purchase of quick-turnaround inventory. An MCA is also a great financing option for companies that are borrowing to expand their operating capacity through the acquisition of machinery or to bring in extra help during peak season. Businesses that utilize merchant financing include:

• Retailers, distributors, and suppliers
• Transportation companies
• Service-based businesses, like hair and nail salons
• Bars and restaurants
• Specialty trades
• Auto repair shops

An MCA is a great option for businesses that process a high volume of credit card transactions. Before taking on any business financing, make sure you understand the costs associated with your loan. In addition, ensure you have enough cash flow to make payments, especially since an MCA needs to be paid back daily.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

What is an MCA Buyout loan?

Let’s begin with the formal explanation of a merchant cash advance (MCA) and a brief history. A merchant cash advance is simply a lump sum advance of funds from one party to another with a set payback amount. For example, a restaurant that receives $10,000 and agrees to pay back $13,000 from future revenue is a typical MCA. If this sounds a lot like a loan, you’re right. That’s why a brief history and an explanation of the nuances is important.

Originally, merchant cash advances were paid back based upon a percentage of future revenue. By definition, the payback terms varied depending upon future earnings. This method was popular in the restaurant industry, among others, that had trouble securing funds from traditional banks and relied heavily on credit card sales. Take our example above, where a business owner received a $10,000 advance and agreed to pay back $13,000. If the terms of the advance called for 10% of monthly credit card receipts to be paid to the funder, then:

Example 1: 10% of $5,000 in monthly sales = $500. The payback would be 26 months.

Example 2 : 10% of $10,000 in monthly sales = $1,000. The payback would be 13 months.

The APR of Example 1 is obviously much more advantageous than Example 2.

Over time the MCA industry began to shift to set daily payback amounts— known as a “holdback”—sometimes through credit card receipts and increasingly through automatic debits known as an Automatic Clearing House (ACH) payment. This created more clarity for both the borrower and the lender, making it easier to determine the APR on a particular advance. But even though an APR is usually important to the business owner, it’s rarely presented in these terms by the MCA lender. They have two very good reasons for doing it this way.

1. Acknowledging that a Merchant Cash Advance carries an interest rate means it looks and acts more like a loan. MCA companies explicitly state in their agreements that advances are not loans because they would be taxed differently and they would open themselves up to regulatory scrutiny.
2. The APR’s on advances are extremely high and have the potential to spook borrowers. Even though the industry has become extremely competitive, APR’s on an MCA can range from 10% to 150%. In some cases, even higher.

For obvious reasons, even companies that historically offered loan products refer to them in the agreements as advances.

Why You Should Consider a Merchant Cash Advance

If you’re considering this type of funding, it’s probably because you’ve been turned down by a traditional financing company or you are in need of quick cash. If that’s the case, you can’t think about it in terms of percentage. You have to think about the opportunity cost of not getting the financing, the savings in time, and the value of the money to you personally based upon your situation. If friends and family aren’t an option, and you’re not in a strong enough financial position to secure a loan or a line of credit from a bank, then an MCA might be your fastest and best option.

Benefits of Taking a Merchant Cash Advance

• Unsecured. Most merchant cash advances are unsecured loans, meaning no tangible asset is pledged against the money. The funder is assuming the risk of the advance, which is why the fees associated with an advance are higher than normal lines of credit or bank loans. It’s important to know that the MCA is taking on 100% of the risk in this situation. Having said that, you will be asked to sign a personal guarantee, which means your credit score is at risk should you default. Moreover, the MCA can take steps to collect their money from you personally in the event of a default, which can be more than a headache.
• Fast Funding. Merchant cash advances are typically turned around in less than a week if you’re deemed eligible by the funder’s underwriting standards and you have the proper documentation in place. These include:
  
  
  • 3 to 6 months of business bank statements
  • Prior year’s tax return
  • Certificate of Incorporation
  • Copy of a driver’s license
  • Completed application with personal information
  • Proof of tenancy. This includes a mortgage deed if you own your property or a valid lease. If you lease your business space, be sure you’re current because funders typically contact your landlord.

Most business owners are able to provide the documentation above with relative ease. Being prepared with these items will greatly speed up the underwriting process.

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584