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Is A Merchant Cash Advance Worth It?

By 08/14/2019 September 17th, 2019 No Comments
Merchant Cash Advance

Responsible usage of a merchant cash advance will not only grow your business’ revenue but simultaneously increase your credit score as you pay off your credit cards and decrease your utilization rate. Additionally, tax obligations, judgments and any payments in arrears can all be paid off with your MCA which instantly improves your credit profile. Merchant cash advances are typically short term and expensive; however, when used correctly, they can finance incredible growth opportunities. When considering an MCA, you need to think about how you will use the money…

Will it increase your revenues and/or profit by 10-20%?

If so, taking the advance is worth it. With an MCA’s short term, it allows you to grow your revenue to a point it has not reached before, and although the profits may not exceed the cost by much, the term will end in around a year’s time or less, leaving you debt-free with over a 10% growth in business. On top of this, no MCA lender will give you a dollar amount more than you can afford. In looking at how much you gross monthly, your time in business, and credit score, the number that a lending expert determines is not only helpful but safe for the merchant.

 

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