Amongst the most attractive benefits of a Merchant Cash Advance (MCA) program, alongside easy and fast access, is the unrestricted use of funds. Businesses may use the capital injection to grow their business however they like (expanding inventory, renovation, advertising, opening a new location, paying operating expenses, growing human infrastructure, etc). However, with the allowance to use the funds with no restriction typical MCA programs carry a higher cost of money than a similar secured leasing or loan program.

Approvals and terms extend between 6 and 18 months, and often require no personal guarantees of the ownership.

Easy access to unrestricted working capital makes the Merchant Cash Advance (MCA) program attractive for many businesses looking for short term use of funds. With the recent economic downturn, and the subsequent recovery, many companies find themselves with an opportunity to capture a larger market share left in the wake of less competition by upgrading, expanding, and renovating. Many companies that survived the downturn with some damage to their credit find MCA programs more accessible and less frustrating than tradition loan programs.

MCA programs focus on merchant processing revenue rather than collateral and credit making it more accessible to a wider audience of businesses.

• Standard Terms: 6-18 months
• Minimum Time In business: 6 months
• Advance Amount: 125-175% of monthly volume
• Payment Terms: Percentage of daily volume
• Bank Balance: Medium 4 figure
• Relaxed Credit Parameters, No Personal Guarantees, Approvals up to $250,000,Funding as Quick as 1 Business Day, Flexible Payment Terms Available, No Industry Restriction, Unrestricted use of Funds

To meet the needs of customer demands in the recovering economy many Merchant Cash Advance (MCA) programs are now offering unrestricted use of funds without limiting industry or business structure. Also recently announced is the floating term program that allows for an open ended term that ends after the pre-structured amount is paid off from a percentage of your monthly processing volume.

Credit recovery MCA programs are also available to those that survived the troubled economy with damaged credit.

Standard working capital loan programs revolve around the upkeep of positive bank balance coupled with a good flow of deposits into the account. Requirements for approval will be a standard application and 6 months of business bank statements. The use of funds will be made available upon approval in as little as 1 business day, and may be used at the discretion of the recipient.

Traditional working capital loan programs allow for unrestricted use of funds for any needs that the business may have.

With the same flexibility in the use of funds and easy access to capital, traditional working capital loan programs are still a great product for businesses in need of growth without the requirement to accept credit cards. Repayment occurs with an ACH from the business bank account using fixed payments for a fixed term.

Credit parameters are slightly more involved than Merchant Cash Advance programs, but yield a lower cost of funds.

• Standard Terms: 6-18 months
• Minimum Time In business: 6 months
• Advance Amount: 4-15% of annual revenue
• Payment Terms: Fixed payment with an easy ACH
• Bank Balance: Low 4 figure
• No Requirement to Accept Credit Cards, No Personal Guarantees, Approvals up to $250,000,Funding as Quick as 1 Business Day, Flexible Payment Terms Available, No Industry Restriction, Unrestricted use of Funds

For companies that do not rely on credit card transactions for customer payments the working capital loan program is an ideal situation for capital injection. Often SBA loans take upwards of several months and require lengthy and invasive credit screening resulting in less than favorable outcomes. The working capital loan program is ideal for short time financing without hassling with tax returns and financial statements or if you are recovering from a damaged credit situation.