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How Merchant Cash
Advances Work
Merchant Cash Advances or
MCAs are advances against future credit card sales. An MCA is not
a loan. There is no rate of interest or set payment amount which
must be adhered to. Instead, a business owner sells an amount of
future credit card sales to an MCA provider at a discount to their face
value. The MCA provider then receives a percentage of the client's
daily credit card sales. |
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Who Can Use It
While
factoring provides ready cash for invoiced sales where services are
already performed or goods delivered, MCAs advance cash on projected
sales paid by credit card. This can often
include restaurants and many retailers, such as clothing stores,
furniture stores, and many other areas not traditionally served by the
factoring industry. MCA financing is also a good fit for any
business that experiences seasonal fluctuations in sales, many rapidly
growing businesses, and also franchises or those businesses needing
capital to open a second or third location.
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Find Out More
The ready
capital provided by the various areas of alternative commercial finance can
easily mean the difference between success or failure for many small
businesses. To find out more about factoring,
purchase order finance, MCAs, inventory finance and financing exports
and international trade transactions, we have published an informative and
complimentary small business owner's guide entitled
"Growing Your Business
Through Factoring....WHEN BANKS SAY NO!"
Request your FREE
Small Business Guide today
Its FREE
and available from our contact area.
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Copyright
DataMax Marketing Systems, Inc. 2009, 2010
All rights reserved.
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