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How to get a merchant cash advance
A merchant cash advance (MCA) is the best option when a small business requires a small capital urgently. This is most suitable for businesses that largely obtain revenue from credit and debit card sales. This includes restaurants, cafes, and retail outlets. A merchant cash advance is technically a commercial transaction as opposed to a loan, and a borrower receives a lump sum amount in exchange for a percentage of their sales.
Repayments of merchant cash advances can be made in two ways.
An MCA must be considered by a small business only when it needs immediate access to capital. For instance, when it wants to purchase a stock at a discounted price or invest in machinery. It can also be a convenient option for businesses that conduct most of their transactions via credit cards. However, businesses must express caution while taking an MCA as it can easily put them through a vicious cycle of borrowing. If you own a small business, looking to get an MCA, here’s how you can apply.
Typically, it takes about two days for the advance to be deposited into the business’ account after an approval has been made.
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