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Cash flow is key to the success of your business. Unfortunately, it is rarely easy for many business owners to guarantee the access to working capital that they require. Whether you are looking for funds to cover operational costs during a period of slow sales or you are interested in obtaining extra cash so that you can expand your services, you will benefit greatly by looking at all of the options available to you. One great fit for many is a merchant cash advance. Review this guide and gain more insight into your options.

What is an MCA?

First and foremost, you need to take a step back and gain some perspective on what this service can offer. Essentially, an MCA is a type of financing that is offered to business owners who need access to working capital. The service is based around a specific asset: your credit sales. The lender will take a look at your credit transactions and offer you an advance based on how much money your business tends to conduct via credit sales in a given period.

Paying for an MCA

Unlike a loan, a merchant cash advance is categorized as an advance on funds you are already anticipating in some capacity. A lender will figure out how much money your business sees each month via credit transactions, offer you a loan based on this number, then set the terms of your repayment. Traditionally, an MCA repayment is straightforward. The lender will take the funds directly from your future credit sales, making the entire process straightforward.

Considerations of an Advance

Though many perks come along with using an advance for your business, there are also plenty of obstacles of which you should keep aware. Specifically, you need to think about the repayment plan. While it might seem advantageous for the payments to come directly from your credit sales, this is only useful if the sales are strong during this period. Weak or slow sales can cause major problems and put you in a worse financial position than you began. 

When it comes to the future of your business, you need to take time to consider the ins and outs of the services offered to you. From a financial perspective, a merchant cash advance could be the best fit. Look over the details and see how you can begin the application process and discover the right solution for the future of your business.

At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.