As a merchant account company, we do Merchant Cash Advances (MCAs) and Automated Clearing Houses (ACHs). But there is a big difference between MCAs, ACHs, and small business loans. Find out why so many merchants are choosing MCAs and ACHs over a conventional bank loan.

Merchant Cash Advances (MCAs)

A Merchant Cash Advance is a business loan alternative that is actually a sale. Our clients are selling us their future business at a discount in order to receive cash now. This advance of funds is driven by a percentage of future sales which are used to pay back the initial advance.

Business Loan Alternative Example:

You have requested a funding of $300,000. After your application gets approved, you will receive the funds directly into your checking account. You can use these funds to run your business in any manner you see fit, to include buying another location, paying off loans, inventory, or you name it...

Now, how do you repay? You don't have to worry because it is automatically done.

The Merchant Cash Advance Company has purchased $375,000 of your credit card future sales for a set price of $300,000. The cost of funds sent to you have been agreed upon by you and The Merchant Cash Advance Company prior to funding, and the terms of repayment are laid out in the contracts you have signed.

So now, every time you batch, a set percentage from your daily credit card sales is taken for your repayment. This is done until your obligation of $375,000 is paid off. So, your payment depends on your daily credit card sales. If you don't have sales for the day, there is nothing applied to your balance.

It doesn't matter if it takes you 5 weeks, 5 months, or 1 year to pay us back because you still pay back the same amount you agreed upon, which is $375,000 at the time of closing. There are no penalties, no time limits, and no late fees. As your ISO partner, we get paid when you make sales.

Once you are fully paid off, the automatic deduction will stop. You will revert back to getting 100% of your credit card batch dollar. The deal is finished as if nothing happened. However, because you used the merchant cash advance towards the positive direction of your business, you now have increased cash flow, a more valuable business, and a more profitable business.

Your Business Is Not Currently Accepting Credit Cards?

In our effort to address this issue, The Merchant Cash Advance Company has partnered with 3 other banks and created the"Bank-Only ACH Program."

ACHs are SPECIFICALLY DESIGNED for businesses that don't accept credit card payments.

Instead of underwriting off of the credit card sales like we ordinarily do, in this case we use the total gross income shown as deposits in your business bank account, and then an ACH mechanism is utilized to drive the payback.

There are more underwriting requirements with this kind of program.Since these ISO merchant services are beta test products, the business cash advance time-frame is normally shorter. However, since we are opening your business up to capital based off of your gross deposits, we will be able to become more aggressive with our approvals.

If you have some business financing questions or would like a free consultation, please contact The Merchant Cash Advance Company today. We are your source for creative financing.