What is a Merchant Cash Advance

Posted by on 20th September 2022


What are some different ways that a small business can raise capital? There are a variety of financing options available. Still, a merchant cash advance is consistently ranked as one of the most popular ways businesses borrow capital (MCA).

 

Small business loans, known as Merchant cash advances, or MCAs, provide access to money when you require it most in exchange for a percentage of your future credit card sales. A normal interest rate for business loans is between 4 and 18 percent, and the maximum amount a merchant can borrow is €150,000 thousand euros over 12 months. Linked Finance offer the lowest rates starting at 4%.

Who can qualify for a Merchant Cash Advance?

A small business that accepts credit and debit cards as a form of payment may qualify for a particular commercial loan known as a merchant cash advance. This kind of loan can be quite beneficial. The lender provides the company with a cash advance, which the company repays through their card terminal with a part of the card payments received from the company’s clients. 

 

This particular kind of finance for business comes with several advantages: no large monthly repayments, funds are drawdown quickly and once fully repaid you can apply for more finance and have an immediate decision.

What advantages do merchant cash advances offer?

Merchant cash advances offer several benefits to businesses, including increased liquidity and streamlined borrowing procedures. A merchant cash advance can help you meet short-term financial needs. Additionally, a merchant cash advance can boost your business’s overall liquidity, allowing you to make more sales and grow your business faster.

 

Term Loan vs. Cash Advance

In comparison to a standard bank loan, a Cash Advance is an innovative new method of capital for your business:

 

  • Rapid funding – applications accepted in days or even hours with Linked Finance

  • There are no business plans necessary

  • Flexible repayments – pay back with every tap

  • Obtaining a fresh line of credit

  • No security is required.

How to get a merchant cash advance?

A merchant cash advance is a type of short-term loan often provided to small businesses to address a temporary requirement, such as a cash flow shortage. These loans typically have a lower interest rate than traditional bank loans. 

 

The procedure is not overly difficult or time-consuming, and the loan interest rates are typically cheaper than those on conventional term loans. To be eligible for a merchant cash advance, you need to be able to demonstrate both that you have a positive credit history and that you have sufficient financial resources.

 

Linked finance is one of the best online platforms in Ireland that grants MCA. With an advance on linked finance, your company receives a one-time payment later offset daily by a portion of your credit and debit card sales. You repay more quickly as your company expands. You repay more slowly in slow periods.

 

Eligibility for loans:

  • Accept debit/credit cards

  • Trading 2+ years

  • Turnover €100,000+

 

Final Thoughts About Merchant Cash Advance

A Merchant Cash Advance (MCA) is a source of finance that is ideal  It does not replace traditional term loans or lines of credit. Still, it does offer significant benefits for both the borrower and lender. The borrower gets fast access to funds, enabling them to take on inventory or do other previously unavailable things due to low credit scores or lack of collateral. Plus, the repayment terms are typically not as demanding as those associated with term loans.

Conclusion

Merchant cash advances are a great way to get the money you need as soon as possible. These loans typically have lower interest rates than traditional loans, and they come with flexible terms that can fit your specific needs. Plus, merchant cash advances offer the added benefit of providing you with extra liquidity so that you can continue to run your business without interruption. If this sounds like something you would be interested in, learn more about Merchant Cash Advances today! 

Keep your business moving forward

With fast and flexible financing from Linked Finance.

Business Loans but Different

A Better Way to Borrow for Your Business

Linked Finance connects great local businesses who need loans with thousands of individual lenders. This is about using technology to bring business lending back to basics; real people with savings lending to great local businesses at attractive interest rates. Businesses get the funds they need to grow, lenders make a fair return. Everybody wins!

If you need a loan to grow your business, talk to Linked Finance

  • You get a same-day credit decision.
  • You can borrow up to €500,000.
  • No early repayment penalties.
  • A friendly, no-hassle approach.
  • Promote your business.
  • Win new customers as part of the process.

 

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