How To Get Funding For A Small To Medium Sized Business}

Submitted by: John Gotidoc

As banks have tightened credit in the past years, business funding options are on the rise as small to mid-sized businesses turn to non-traditional providers of working capital. Merchant cash advance is one of the booming industries in the financial playing field, preferred by most entrepreneurs in securing quick cash.

As more and more people turn to entrepreneurship, access to business funding is also on the rise. Traditional lenders such as banks have tightened credit in the past years so cash-strapped entrepreneurs turn to other alternatives to solve one crucial problem – finding cash. While commercial banks squeezed their financial support for small businesses, development companies, micro lenders and merchant cash advance providers opened their doors, filling the void and helping entrepreneurs gain access to cash.

Small business owners such as restaurant operators, dental service providers, promotional product owners, and other small business operators looking for alternative sources of business capital are now able to secure additional cash quickly without having to offer any collateral. Companies such as cash advance providers offer such services and are preferred by more business owners.

What exactly is a merchant cash advance?


A merchant cash advance (or MCA, also called credit card factoring) is a financing option often availed by small to medium-sized businesses. It involves the purchase of a portion of the merchants future credit card receivables at a discount. Every time the merchant receives payment from customers via credit card, a portion of the sales is forwarded to the cash advance provider until all of the purchased receivable is repaid back.

A merchant cash advance however, is not a loan mainly for the following reasons:

1. The MCA provider requires no personal guarantee or collateral from the merchant. This means that the provider risks losing its investment if the merchant goes out of business. This is one of the reasons why merchant cash advance providers have a minimum set of requirements before doling out a cash advance. These are:

* The merchant has been in the business for the past year;

* The merchant has at least fifty (50) credit card transactions every month;

* The merchant has no outstanding rental obligations and has at least a year remaining on its lease, and;

* The merchant has no open bankruptcies or foreclosures.

2. Merchant cash advances have no fixed payment schedule. Repayment follows the merchants daily card sales volume. In other words, the provider receives higher repayment amount when merchant sales are up and receives a lower repayment percentage when merchant sales are down. There is no late payment, thus, no additional charge or penalties as opposed to a fixed-term loan where a fixed dollar amount must be paid on or before its due date regardless of the merchants sales volume.

3. There is no business-use restriction. The merchant is free to use the cash advance in any business expenses purchase of additional inventory, new equipment, paying off debt, office remodeling or emergency subsidy among others.

Most reputable merchant cash providers can qualify a business for a cash advance quickly and easily. The application process is quite simple. No tedious paperwork and no credit score or credit check involved. You just have to choose the right provider.

About the Author: John is a brand marketer, social media and marketing manager, application developer, database administrator, and project manager in a wide variety of business applications.To inquire more about merchant cash advance, visit

or call 877-760-226.


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