A Term MCA is a type of monetary advance that is repaid in fixed installments over a set period. It usually involves a variable interest rate that increases the amount to be repaid.
What is Line of Credit?
A line of credit is a type of loan that provides access to a pre-approved amount of credit that can be borrowed and repaid as needed, up to the limit. Unlike a traditional loan, with a line of credit, you only pay interest on the amount you use and can draw from the available credit as often as you need, as long as you do not exceed the credit limit. There are two main types of lines of credit: secured and unsecured. A secured line of credit requires collateral, such as a savings account or real estate, while an unsecured line of credit does not. Line of credit can be used for a variety of purposes such as managing cash flow, financing short-term business needs, or making large purchases.
What is an Asset-based MCA?
An Asset-Based Merchant Cash Advance (MCA) is a type of financing that provides businesses with working capital in exchange for a percentage of their daily credit card sales. Unlike traditional loans, an Asset-Based MCA is not paid back through fixed monthly payments. Instead, the lender automatically deducts a set percentage of the business’s daily credit card sales until the advance is fully repaid. This type of financing is often used by businesses with a fluctuating income stream or those that do not qualify for traditional bank loans due to their credit history or lack of collateral. The lender uses the business’s credit card sales as collateral for the advance, which makes it a more accessible option for many small businesses. However, it is important to note that Asset-Based MCAs often have higher costs and shorter repayment terms compared to traditional loans, so it’s crucial to carefully consider the terms before taking on this type of financing.
Are there any Restricted Industries?
We have no restrictions on the industries we serve.
What is an SBA7-A?
The SBA 7(a) Loan Program is a government-guaranteed loan program offered by the Small Business Administration (SBA) to help small businesses access capital. The 7(a) program is the SBA’s flagship loan program and is named after the section of the Small Business Act that created it. The SBA 7(a) loans are designed to meet the financing needs of small businesses that may not have access to traditional bank financing. The program offers a range of loan options, including term loans, lines of credit, and export financing. The loans are provided by SBA-approved lenders, such as banks and other financial institutions, and are guaranteed by the SBA up to a certain percentage. The SBA 7(a) program is highly flexible and can be used for a variety of purposes, including working capital, equipment purchases, real estate purchases, and franchise financing. To be eligible for a 7(a) loan, a business must meet certain size standards, be for-profit, and be engaged in a lawful business. The business must also be unable to obtain credit elsewhere. Overall, the SBA 7(a) Loan Program provides a valuable source of financing for small businesses, allowing them to access the capital they need to start or grow their businesses.
What is Credit Card Processing Split Advance?
A Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and/or debit card profits. The way this works is Merchant Cash Advance companies provide funds to businesses in exchange for a percentage of the businesses daily credit card income. This percentage is taken directly from the processor that clears and settles the credit card payment. A company’s payments are drawn from customers’ debit- and credit-card purchases daily until the obligation has been met. Most providers form partnerships with credit card payment processors and take payments directly from a business owner’s card-swipe terminal. A Merchant Cash Advance is most often used by retail businesses that do not qualify for regular bank MCA. A business cash advance can be expensive compared with interest on a bank MCA, ranging from 10% to 100% effective interest. Merchant cash advances are not MCA – they are a sale of a portion of future credit and/or debit card sales. Meaning merchant cash advance companies claim that they are not bound by specific laws that would limit interest rates.
