A Merchant Cash Advance (MCA) allows businesses to access capital
quickly based on their future credit card sales. It’s an ideal
solution for businesses that need immediate funds to manage
expenses, seize opportunities, or invest in growth, without the
lengthy application process associated with traditional loans.
How It Works
With an MCA, your business receives a lump sum of cash upfront,
which is repaid by deducting a percentage of your daily credit
card sales. The repayment adjusts according to your sales volume,
so on slower days, you pay less. This flexibility makes it a
convenient option for businesses with fluctuating cash flows.
Benefits
Fast access to capital: Receive funding within 24 to 48 hours.
Flexible repayment: Payments fluctuate with your sales volume,
easing cash flow concerns.
No fixed payments: Repay as a percentage of sales, making it more
adaptable to your business performance.
Minimal paperwork: Simplified application process with no need for
collateral.
Term Loan
Overview
A Term Loan is a fixed amount of capital provided to businesses
for major investments or expenses. This loan type is best suited
for companies looking to expand operations, purchase equipment, or
undertake other significant projects with the assurance of fixed
monthly payments over a set period.
How It Works
With a Term Loan, you receive a one-time lump sum of capital,
which you repay through fixed monthly payments over a
predetermined period. The interest rate remains fixed, providing
certainty on your repayment schedule and making it easier to plan
your finances. This is an ideal choice for long-term investments
or larger expenditures.
Benefits
Large capital amounts: Ideal for significant investments or
business expansion.
Fixed payments: Easy to budget with a consistent monthly payment
plan.
Predictable interest rates: Protects you from market fluctuations,
ensuring the loan cost remains stable.
Flexible terms: Choose a repayment schedule that suits your
business’s financial health.
Line of Credit
Overview
A Line of Credit is a revolving credit facility that allows
businesses to access funds when needed. Unlike a term loan, a line
of credit gives you the flexibility to draw and repay funds
multiple times as needed, making it ideal for managing cash flow,
covering short-term expenses, or seizing opportunities.
How It Works
A Line of Credit works like a credit card, where you have access
to a set credit limit but only pay interest on the amount you use.
You can draw from the credit line whenever you need funds and
repay at your own pace. Once repaid, those funds become available
again, allowing continuous access to capital.
Benefits
Flexible borrowing: Access funds when needed without reapplying.
Pay only for what you use: Interest is charged only on the amount
you withdraw.
Revolving credit: Once repaid, the funds are available again,
giving you ongoing financial support.
Ideal for cash flow management: Perfect for handling short-term
needs or unexpected expenses.
