page contents

Merchant Cash Advance

Business Cash Advance

Working Capital

Merchant Advance agreement

Just a quick word on today’s small business loan market.  

MCAs (Merchant Cash Advances) became popular because they were the most readily available financing for retailers.     The MCA became popular for their super high approval rates and decisions within one business week.

But MCAs have their nagging drawbacks, their interest rates being top of that list.    These APRs may range from 25% to 45% for a 6-12 month term.   So these MCA funding deals would need to finance a project or trend that yields a good profit in the end.   Business owners normally have a good idea if the numbers look profitable.     But some businesses have accepted MCA financing, which didn’t yield a profit, because it was the only financing available for retailers.    

Another drawback, the Merchants have to change credit card processors.     This will be a disruption in your daily work & operation, even if it’s just temporary.

So then, what are the alternatives?

  1. an SBA loan, 10 year terms and low APR
  2. or IOU Financial is a great substitute for the Merchant Cash Advance
  3. and Merchant Cash Advance restructuring page is coming soon.   Click on contact page if the daily payments are getting the better of you & you'd consider restructuring that debt.

click on the page links & look for the customer referral specials!

Its said that 5%-10% of all Merchants need money but at this point in time, Banks are tightening up due to America’s credit crunch. The tight criterion which existed before, are now tighter making Bank Financing less of an option and less practical. Click here for Frequently Asked Questions.

When Merchants are cash strapped, while having everything else in place - they could suffer from what’s commonly referred to as “Opportunity Loss”. What if you’re in position to do an addition, or bring in supplies that are currently in hot commodity, do you belong to a Franchise that mandates you do upgrades?

Business Cash Advances

click out of Merchant Cash Advance