Merchant cash advance

Avance de efectivo para negocios

Los avances de efectivo para negocios (MCA, por sus siglas en inglés) son una opción disponible y costosa para empresas que tienen ventas con tarjetas de crédito o débito. Los MCA son probablemente la opción de préstamos más costosa, con tasas anuales efectivas (APR) de 25% – 350%. Usualmente requieren un pago mínimo a diario sin que importen tus ventas o el ingreso diario de tu negocio. Los avances de efectivo para empresas usualmente pueden ser aprobados en uno a dos días—con muy poco papeleo. Después de la aprobación, el préstamo se paga con una porción de tus futuras ventas con tarjeta de crédito cada día. Algunos prestamistas que comercian exclusivamente en-línea ofrecen avances de efectivo para empresas.

Credit Score Requirements: 
Low
Loan Wait Times: 
Low
Interest Rates: 
High
Vista Rápida
Features: 
  • Acceso rápido a efectivo
  • Términos de pago flexibles
  • No requiere un crédito sólido
  • Tú decides cómo usar los fondos
  • No requiere garantía
Things to consider: 
  • Muy, muy costoso (tasas anuales efectivas de 70-200%)
  • Los pagos mínimos diarios pueden perjudicar el flujo de efectivo
  • No ayuda al crédito comercial
  • Procesador de tarjetas comercial My lock-in
  • Debes aceptar tarjetas de crédito

Merchant Cash Advance

Merchant Cash Advances (MCAs) are a pricey option that’s available to businesses that have credit or debit card sales. MCAs are probably the most expensive borrowing option, with APRs between 25% – 350%. Usually, they require a minimum daily payment regardless of your sales. Merchant cash advances can usually be approved in a day or two—with very little paperwork. After approval, the loan is repaid with a portion of your future credit card sales each day. Some online only marketplace lenders provide merchant cash advances.

Credit Score Requirements: 
Low
Loan Wait Times: 
Low
Interest Rates: 
High
Quick Overview
Features: 
  • Fast access to cash
  • Flexible repayment terms
  • Strong credit not required
  • You choose how to use funds
  • No collateral required
Things to consider: 
  • Very, very expensive (70-200% APR)
  • Minimum daily payments hurt cash flow
  • Doesn’t help business credit
  • My lock-in merchant processor
  • Must accept credit cards.

Review of Small Business Lending Marketplaces Fundera & Lendio

Fundera and Lendio are two online marketplaces that aim to simplify the business financing process by cutting down the search and wait time associated with finding a small business loan. Online marketplaces allow business owners to comparison shop for credit from a variety of lenders, including short-term and long-term loans, equipment financing, invoice factoring, lines of credit, merchant cash advances, SBA loans, and more.

Should You Use Cash Advances for Small Business Funding?

Cash influxes are quite common when you are planning to setup a new business. Usually, owners look for credit lines or bank loans for funding their financial growth as these are some of the more popular resources in hand. However, the concept of cash advances can also be adopted despite being a lesser known commodity in the world of finances.