How Merchant Cash Advance Lenders Advance Loans to Small Businesses

The majority of the businesses in the country are independent small businesses. The small businesses make the backbone of the economy but still are finding it difficult to avail business loans easily. Availing a business loan has become more of task for the small businesses as qualifying for loan needs the business to be an established one with good credit history and repaying capacity. Most of the businesses fail to qualify for the loan but even if they qualify the entire process is time-consuming which sometimes forces the businesses to lose the opportunity to grow or expand. Fortunately, the merchant cash advance lenders advance loans easily without much procedure and credit checks. These non-bank lenders authorize loans quickly in less than a week and deposit funds directly into the business account of the borrower.

How to Qualify?

If you are wondering what the requirements of merchant cash advance lenders to avail a loan are, then there are only few that can be easily met by most of the businesses. The business need not have an excellent credit history to avail the cash advance or collateral to pledge. Any business which accepts payments through credit /debit card with specified monthly sales turnover can qualify cash advance from merchant cash advance lenders. The loan involves minimum documentations as the lenders obtain details of the business from the card merchant of the business and get approved in a week or so. The cash advance funds approved is directly deposited in the business account of the borrower and can be used for any purpose of the business.

How does MCA work?

The small business should have an idea how the merchant cash advance loans work before availing them. Requirements and repayment terms of the merchant cash advance lenders differ with each lender as they are not regulated by any bank or government institution. However, the majority of small businesses avail loans from these non-bank lenders as a lump sum amount is availed easily in less time. The merchant cash advance is a lump sum amount advanced by the lender to the borrower against the future sales of the business. The lender deals with the merchant of the card machine of the business to collect the amount repayable. These cash advances can be availed by the borrowers with low and bad credit scores.


There are several advantages of small businesses availing loan from merchant cash advance lenders. The major advantage is that the business will get money for operating the business within one week which is difficult to avail through traditional bank loans. The second big advantage of the merchant cash advance is that the borrower need not have to remember the amount and the day of repayment as the lender collects them directly from the merchant. The application is simple and can be done online, the process involves less documentation and is collateral as the majority of the information is gathered from the card merchant of the machine. The loan once applied when meets the requirement approved within few days and funds are deposited directly to the borrower’s business bank account.

Categorized as Finance

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