MCA FAQ

Different providers will have different caps with typical amounts advanced ranging from $5,000 to $50,000. MCAs are a short-term financing option.
What is the average holdback and factoring rate?
Different providers will provide different quotes for an MCA to small business owners. Holdbacks can range from 8% to highs of 30% whereas factoring rates range from 1.2x to 1.5x.

Different providers will provide different quotes for an MCA to small business owners. Holdbacks can range from 8% to highs of 30% whereas factoring rates range from 1.2x to 1.5x.

Funds channeled into the business can be utilized without restrictions meaning that they can go into any type of business expenses. All advanced funds will be at the owner’s discretion.

MCAs do not have fixed terms and are designed to be repaid as a percentage of business card revenues.

You can employ a few methods to increase cash flows such as negotiating for longer repayment terms with suppliers, shorten collection cycles on accounts receivable, and institute improved inventory control to prevent cash from being tied up in inventory.

Yes, you qualify for MCA even with bad credit. MCAs are considered less risky by brokers and lenders since repayments are automated. The repayments are also guaranteed as long as your business continues making money.
Merchant cash advances are an easily accessible financing option which is not too hard even when you have a low credit score.

There are several other quick business loans that you can get in place of a merchant cash advance such as invoice factoring. Invoice factoring is markedly different from traditional loan options. Invoice factoring is another upfront cash payment that may not be repaid similarly to traditional loans.

Yes, merchant cash advances are readily available to startups. The lender will assess your business and then decide whether to give you an advance.