-
Why Business Owners Choose Flexibility Over Bank Loans
Why Business Owners Choose Flexibility Over Bank Loans Small business owners and entrepreneurs are always looking for better ways to manage cash flow, support daily operations, and grow in a rapidly changing business environment. While bank loans were once the default solution, many businesses today prefer more flexible financing options. This shift reflects the need…
-
What Is a Holdback Rate and Why Does It Matter?
What Is a Holdback Rate and Why Does It Matter? If you run a business and are considering a merchant cash advance (MCA), you’ll likely encounter the term “holdback rate.” It’s essential to understand this concept, as it directly affects your daily cash flow and how quickly you repay the advance. What Is a Holdback…
-
Are MCAs Legal in All 50 States?
Are MCAs Legal in All 50 States? Why MCAs Are Legal Everywhere They’re sales, not loans: Merchant Cash Advances (MCAs) are structured as purchases of future credit card receivables, not traditional loans. This legal distinction exempts them from many banking regulations and interest rate caps. Commercial transactions face fewer restrictions: Because MCAs are business-to-business agreements,…
-
Can You Refinance a Merchant Cash Advance?
Can You Refinance a Merchant Cash Advance? A merchant cash advance (MCA) is a common financing option for small and medium-sized businesses that need immediate funding. Unlike traditional loans, an MCA provides a lump sum in exchange for a percentage of future credit card sales or receivables. While MCAs can offer quick relief in financial…
-
Tips for Managing Daily Repayments Smoothly
Tips for Managing Daily Repayments Smoothly If your business has a merchant cash advance or other daily repayment commitments, managing those payments well is critical to maintaining healthy cash flow. With smart planning and discipline, daily repayments don’t have to be stressful. Here are practical tips to help. Track Cash Flow Daily Create a daily…
-
How to Avoid Over-borrowing with Merchant Advances
How to Avoid Over-borrowing with Merchant Advances Merchant advances can be a valuable funding option for small and medium-sized businesses needing quick access to cash. These advances provide funds in exchange for a share of future sales. But without proper planning, they can lead to over-borrowing and financial stress. Here’s how to avoid that. Understand…
-
Can You Pay Off a Merchant Advance Early?
Can You Pay Off a Merchant Advance Early? Yes—most of the time you can pay off a Merchant Cash Advance (MCA) ahead of schedule. But should you? That depends entirely on your contract. Many MCAs don’t offer significant savings for early payoff, so it’s important to read the fine print first. How Early Payoff Typically…
-
Can You Use a Merchant Cash Advance for Payroll?
Can You Use a Merchant Cash Advance for Payroll? Managing payroll is one of the most critical aspects of running a business. When cash flow gets tight, some business owners consider using a Merchant Cash Advance (MCA) to bridge the gap. But is this a smart move? What Is a Merchant Cash Advance? An MCA…
-
The Truth About Daily Repayments: Pros and Cons
The Truth About Daily Repayments: Pros and Cons Daily repayment plans have become increasingly popular as a way to finance purchases or pay off loans in smaller, manageable chunks. Instead of making large monthly payments, borrowers pay a small amount daily. While this can be beneficial in certain situations, it also comes with some downsides.…