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Post by account_disabled on May 30, 2022 8:52:57 GMT -5
What are merchant cash advances and working capital loans?
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Post by account_disabled on May 31, 2022 1:50:30 GMT -5
Hi, have you read any reviews or talked to any company for that issue? I recommend to get help from some trusted company. I was on the same boots a couple of months ago and got some merchant capital loans from Pirscapital and it was an excellent customer service. These guys provided several options to meet my needs and they took the time to explain all my options and answer every question. Hope it will help you to solve all financial problems |
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Post by Bradly on May 31, 2022 2:15:43 GMT -5
What are merchant cash advances and working capital loans? Merchant Cash Advance is a short term loan (repayment period is between 1 month to an year) to cater to your temporary cash flow problems in business. An MCA is extended against your future receivables and typically varies between 15 to 45 days of your revenue (loan amount depends on your risk profile). It is a collateral free loan and is given solely on the basis of your strong business fundamentals. The business vintage should atleast be an year and they prefer incorporated businesses over sole proprietorship or a partnership. The MCA companies give due weightage to your revenues and if you have strong daily inflows then its a big plus for them. On the other hand if your monthly revenues are low or your inflows are erratic then its a big NO for them. Negative monthly balances and cheque bounce cases are red flags for MCA companies. A good credit score will fetch you a better loan amount and tenure. However, if you have written off accounts in your credit report the financial institution will view it negatively. It is also extended against your credit card/debit card receivables. The MCA companies will tie up with the credit card payment processor and they will receive a portion of your daily credit card sales directly till the loan amount has repaid in full. MCA loans are sanctioned and disbursed very quickly but are very high cost in nature (the APR is generally between 35 — 55 %) and should only be opted for in case of an emergency or if its difficult to obtain debt from the traditional banking system. If your business fundamentals are very strong you should try and negotiate the interest rate with your lender. |
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