Living Water Smart

Merchant Lenders & Advances in Canada

Small businesses that are looking forward to expanding their business would need some form of working capital. Businesses in need of some working capital can opt for a business loan. However, the loan to get approved can take a lot of time. In case, a business can’t wait for a long time then they can opt for merchant cash advance.

Usually, merchant cash advance loans can provide Merchant Cash Advance (MCA) to their customers. MCA is considered to be an alternative financing option for businesses.  MCA can help a business to get some finance very quickly. As a matter of fact, it can be said that MCA can be great for businesses that are looking for quick finances along with flexible payment option.

Merchant Cash Advance

If you are hearing the term MCA for the first time, you don’t need to freak out. This blog will guide you completely with the terms of MCA and what it is all about.

MCA or popularly known as Merchant Cash Advance is an advance and not a loan. Even if it’s referred as a loan, it is an advance that is given to a business against their future income. Or, better be said, the advance is given against the future credit card sales receivables. The advance is given by merchant cash advance loans only after making an agreement. Before making the agreement, the lender sees to it whether the business would be able to repay the entire amount of advances.

merchant cash advance loans

Who Are Merchant Cash Lenders?

Now one question might strike your mind, i.e. who are merchant cash lenders? Basically, merchant cash lender is the provider who provides the finance to the client. The lender can be an individual or a private group, who makes the finance available for their customers. The merchant cash provider provides the advance or the finance with the expectation that the advance amount would be repaid by the customers along with a certain percentage of the income.

According to merchant cash advance loans, the merchant cash advance providers don’t ask for any form of collateral for giving the finance. They don’t need any form of security. It’s because the lenders usually form a partnership with payment processors. After that, they seek a certain amount of the future credit card sales of the client.

merchant cash advance loans

What Does Advancement Mean in MCA?

By this time, you must be well aware of the fact that MCA is an advance and not any form of a loan. Hence, the term advance for MCA means a certain amount of money that is given to a borrower. Unlike loans, advances don’t come with a maturity date.

According to merchant cash advance loans, the advances can be a great line of credit for small businesses. It allows businesses to withdraw cash and meet their business goals or make necessary improvements.

Merchant cash advance loans provide more weight to the performance of the business instead of the credit score of the applicant or business owner. If they see that the applicant is making a good profit, they can give a high amount of advance. As they know they will get their money back with the passage of time. Hence, MCA is better than the traditional business loan. Catch the latest news on merchant lending and payday loans here!

Scroll To Top