Merchant Cash Advance (MCA) vs. Business Loans?

11/28/2023

I'm often asked why would a business opt for an advance against their total monthly credit card or bank deposits instead of getting an unsecured loan which may have a lower cost of funds?

Here are just a few scenarios where our Merchant Cash Advance (MCA)is sometimes the right answer for many businesses vs. more traditional business loans:

The Business owner has too many loans outstanding, so his/her debt-to-income ratios just don't fit the criteria most unsecured lenders need to do a deal. For any number of reasons, the owners FICO score has taken a recent dive. The Business has Tax or Creditor liens on his/her personal credit report. The Business and/or owner(s) had a very recent bankruptcy proceeding, that may be closed but lenders want to see more time go by. The Business is brand new and has only been in operation for a few months. Business is in a category that many lenders consider high risk or exclude all together.

The Business owners are young and inexperienced. The Business owners are in the process of refinancing all their outstanding debt into one new larger business loan. They need additional FUNDS for their business while the loan is still underwritten and not yet approved. The Merchant Cash Advance (MCA) is NOT a loan or an outstanding liability on the company’s balance sheet, so the Capital obtained through this type of advanced funding will not interfere with their current planned consolidation.

The Business owner needs funds FAST to take advantage of an opportunity that just became available or for emergency purposes, so he applies and receives the money he needs through We Finance America in less than 48 hours in most cases.The most popular reason our clients use the Merchant Cash Advance (MCA) through We Finance America is just plain convenience and simplicity. Easy to Apply for, Credit Score is NOT an Issue, the type of business you operate is generally NO Problem, only Three months of operations is required, and Cash can be in your bank in as little as a few hours.If you are a business that is making payments on multiple MCA’s and it is really affecting your cash flow, contact us and in 24 hours in most cases, we may be able to lower those payments by up to 50% which in turn increases your cash flow by the same amount.

https://www.wefinanceamerica.com/reverse-consolidation.html

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I am the founder and CEO of Advisory Services USA Inc.

I advise business owners and professionals on how best to position themselves and their companies to qualify for the financing, loans, funding and leases that best fit their business objectives.

I make contact on your behalf with all our licensed lending partners and funding sources, including but not limited to direct lenders, CMBS lenders, banks, private investors, private lenders, fund managers, insurance companies, private equity firms, limited partnerships, hedge funds, and investment trusts, to name a few.

At Advisory Services USA, we work for the benefit of our clients and not any specific bank or lending source.

This blueprint allows us to ensure that our clients will have access to the absolute best rates and terms available to them.

Ours is a Simple and hassle-free process with expedited decisions which in many cases can include same day fundings.

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This is not an offer to lend or extend credit. Credit approval is subject to credit standards, and actual terms (including actual loan amount) may vary by applicant. Advisory Services USA requires certain supporting documentation with each new application and offers no guarantee of funding or loan offers and the terms thereof. All Loan decisions are made by our lending partners and subject to their specific underwriting criteria and approval processes.

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