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Stop worrying about how to pay off a Merchant Cash Advance

Merchant Cash Advance

MCA (Merchant cash advance) is funding that you take out as an advance on your credit and debit card transactions. There are many benefits of taking a merchant cash advance over other lending products, but still, you must be careful. First, let’s talk about the benefits that you get with a merchant cash advance. Then we will discuss how to pay off 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. You will get many benefits from MCA, and all of them are as follows.

MCA is one of the fastest ways you can get funding. The funding process will only take forty-eight hours, and it can be a great way for your business to get an advance on future receivables to take advantage of any business opportunities.

Unlike business loans, there is no spending restriction on Merchant Cash Advances as you can use this money for anything you like; you can buy a company car or spend it on emergencies.

There are no set payments to pay off in MCA but more of an agreed percentage of sales. If you are having a slow sale month, then 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 as an advance for 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, if you think MCA is not the right option, 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, then here are some things you can do to pay off your MCA quickly.

  1. Get interest-free money from a friend or family member
  2. Put your personal savings in to pay off the balance
  3. Get a Mid-Term business loan
  4. Get an Asset-based loan.
  5. Personal Term Loan For Business 

Increase the credit and debit card sales of your business

As you know, MCA offers are underwritten based on your sales or revenue volume and consistency. So, if you increase your sales volume, then you can pay off the merchant cash advance sooner. This will increase your profit and eliminate MCA debt from your business. There are simply two ways to achieve this, one is by increasing your profit through the sale, and the second is by reducing 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 similarly, and if the MCA is linked to only one processor of your business, then you are stuck with minimal options. Change your payment processor and work out how you will pay off the remaining balance with the lender.

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. BitX Funding is an online marketplace for small business loans, and we pride ourselves on connecting our clients with the right lender and loan, so if you need to get out of your current merchant cash advance, we have ways to make that possible.


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