MCA (Marchant cash advance) is a kind of funding that you take out to increase revenue or start your small business. There are many benefits of taking a merchant cash advance over lending products but still, you must be careful. First, let’s talk about the benefits that you get with a merchant cash advance.
Benefits of MCA
If you are looking forward to paying off your merchant cash advance, please keep in mind all the possible options. There are many benefits that you will get with MCA and all of them are follows.
MCA is one of the fastest ways through which you can get funding. The funding process will only take forty-eight hours and it can be a great step for your business if you need fast cash.
Unlike other business loans, there is no spending restriction on MCA. You can use this money for anything you like, you can buy a company car or spend it any other way.
There are no set payments to pay off in MCA. If you are having a slow sale month than you need not worry because MCA payback is based on credit card receivables and a set percentage of the daily receipt.
It has one of the most flexible credit requirements. You don’t have to worry about the debt because MCA is given to you in advance of your future sales.
Finally, you don’t have risk on your assets as an MCA is based on receivables only.
Tips to Pay off your Merchant Cash Advance
Still, after seeing all these benefits you think that MCA is not the right option for you then you can follow these steps to pay off your Merchant Cash advance.
Start by Paying off the advance
If you are not satisfied with your MCA than here are some things that you can do to pay off your MCA real fast.
- Get interested free money from a friend or family member.
- Put your personal savings in to pay off the balance.
- Get a Mid-Term business loan.
- Get an Asset based loan.
Increase the sale of your business
As you guys know that MCA is given against your sales rates. So, if you guys increase your sale rate than you can pay off these merchant cash advance soon. This will not just increase your profit but also lay off MCA debt off your business. There are simply two ways to achieve this one is by increasing your profit through the sale and second is cutting off your expenses.
- You can increase the prices of your products.
- Introduce new service lines.
- Use the technique of premium pricing.
Alternate your payment process
Not all MCAs are created similar and if the MCA is linked to the processor of your business then you are stuck with optimal options. Change the way of your payment processor means to pay off Merchant cash advance through other resources that you have.
So, these are some of the few simple tips through which you guys can get the burden of MCA off by paying it off soon.