A merchant cash advance through Capital Canal offers amounts from $5,000 to $150,000 and does not work as a conventional loan; and millions of small businesses in the US are already using this type of access to capital because they can obtain funds faster than traditional business loans without a stellar credit history to begin with (minimum 500+ credit score).

A Merchant Cash Advance is an excellent way to bring working capital in by making daily remittances. Basically, a lender buys (at a discount) a business’ future sales via credit card or debit card. A fixed payment is set to be withdrawn automatically from the daily card sales instead of paying a fixed amount each month.

Merchant Cash Advance
Merchant Cash Advance

How Does a Merchant Cash Advance Work?

A Merchant Cash Advance (MCA loan) is a purchase of a fixed dollar amount of a business’s future credit and debit card receivables. Your business, instead of paying one large fixed monthly payment, remits a fixed percentage of its daily debit and credit card revenue automatically until the specified amount of purchased receivables is remitted in full.

A Merchant Cash Advance is the preferred method of funding for new companies and business owners with bad credit since they can obtain munch needed capital based on the business gross sales and much faster than traditional business loan options.

  • Easier repayment since you remit less on slow days.
  • Underwriting rules are based mostly on gross sales.
  • Fast funding! Normally 24 to 48 hours after approval.

It is valid to emphasize that although MCA loans come with much higher interest rates (when calculated) than most business loan options, your business will pay the same fixed percentage of your daily or weekly sales. This option will protect your cash flow when facing slow seasons.