What You Need To Know
If you’re looking to expand your business, then you may have been considering a loan or a cash advance. After all, a small investment can create exponential growth, propelling your company to new heights and creating more opportunities to develop.
There’s just one problem, there are so many different types of business loans on today’s market that it can quickly become overwhelming! Don’t worry, though – it’s important to us here at Monark that you succeed in your business endeavours, which is why we’ve put together this handy guide on Merchant Cash Advances.
A merchant cash advance, or MCA, is arguably the most common type of business advance. It benefits from simple, easy to understand payment terms, while offering a great deal of flexibility, helping you make the most of your money.
How does it work?
Put simply, an MCA is a lump-sum payment into your business account; this means that you’ll be able to access the FULL amount at once, perfect for high-cost expansions, upgrades or business investments.
In exchange for a cash-advance, you will agree to pay back a percentage of future credit card and/or debit card sales until the debt has been completely paid off. Payment terms will range from between 3 months to 24 months.
$5,000 to $2,000,000
Between 3 to 24 months
You Get Funds
As fast as 24 hours
Why choose an MCA
An MCA is ideal for situations that require full payment up front, such as if you’re looking to build on your current premises or upgrade your old equipment. As you’ll receive the full payment up front, you’ll be able to make multiple purchases up to the full amount of the advance, making it a great option if you know that you have multiple products, supplies or services to purchase.
An MCA is also one of the most straightforward types of alternative lending currently available; unlike a buyout, where Monark may acquire a percentage of your business, an MCA will be entirely paid off within a certain time scale, this acts much like a traditional small loan.
MCAs also offer a good amount of flexibility; rather than commit to a set monthly repayment, you can simply pay a percentage of your credit and debit card sales.
This is a great way for unpredictable businesses to make their repayments – if they’re unable to guarantee a set payment every month, they can simply pay a percentage of what they have taken.
While this can be a great way to take out a business advance, you do need to analyze your earnings over the years to determine whether you can repay the borrowed amount within the agreed timescale. Failure to make payments can lead to recovery action, which may have a detrimental effect on your business.
How much can you borrow?
Applicants can borrow anywhere from $5,000 to $2,000,000 – it largely depends on what your business needs are along with your current financial situation.
As a responsible lender, we will only provide you with funds if we think that you can pay it back. You should only ever apply for what you need – applying for more money than you can pay back will leave you at risk of being rejected.
As low as 550
Time In Business
6 months minimum
When will you get the funds?
Successful applicants will receive the full payment in as little as 24 to 48 hours! Perfect for when you’re working on tight deadlines, or if you’re eager to implement the planned changes.
Your payment terms will be based on the total amount of money that you have borrowed and how much you earn every month.
Terms can be anywhere between 3 months to two years.