MCA Loans For Small Businesses: Your Essential Guide
Merchant Cash Advances (MCAs) for small businesses offer a unique financing solution by providing an upfront cash injection in exchange for a percentage of future sales made through card payments. Unlike traditional loans, MCAs are advances on future revenue and are particularly beneficial for businesses with consistent credit card sales. Alternative Finance Loans are a flexible solution for enterprises needing quick capital without collateral.
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
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What are the benefits of MCA Loans For Small Businesses?
The primary benefits of MCA loans include their repayment flexibility, quick approval times, and the absence of a need for collateral. Businesses can expect decisions within 24 to 72 hours and funds available 2 to 5 business days post-approval. Factor rates typically range from 1.1 to 1.6, making them a competitive opción for certain sectors like retail and hospitality.
What are the different types of MCA Loans For Small Businesses?
Standard Merchant Cash Advance
Standard Merchant Cash Advances require businesses to have 6 months of trading history with at least £5,000 monthly card turnover. Typical amounts range from £5,000 to £200,000 over 6 to 18 months.
Split Funding
Suitable for businesses with £10,000 monthly card sales, Split Funding offers £10,000 to £500,000 over 12 to 24 months, with repayments made directly through sales.
Flex Cash Advance
Ideal for businesses with varying sales, the Flex Cash Advance offers £5,000 to £150,000 over 6 to 18 months, aiding in adjusting repayment during seasonal changes.
What is an MCA loan for small businesses?
Application Process and Fast Approval Times
The application for an MCA is straightforward: provide basic business information, recent bank statements, and card payment history. Decisions typically arrive within 24 to 72 hours, with funds available shortly thereafter. This efficiency stems from business performance metrics rather than credit scores, highlighting our expertise in streamlined funding solutions.
Regulatory and Compliance Requirements
MCAs operate as commercial transactions and are unregulated by the FCA. Ethical lending, transparency, and understanding these parameters are part of our service expertise. Clients can trust us to navigate these elements effectively as part of our comprehensive offering.
Borrowing Capacity and Rate Information
MCA loans cater to businesses requiring between £5,000 and £500,000, depending on sales volume and stability. Rates typically range from 1.1 to 1.6, with potential origination fees. By understanding these variables, our tailored solutions ensure businesses can optimise their financial strategies effectively.
