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What You Should Know About Merchant Cash Advances

In today’s business environment, speed kills. It truly is a play on words, considering how the companies who are best at adapting can kill their competition, while businesses who are slow on the take will suffer. Plenty of small businesses can recognize this, clearly, and they’ve made the decision to invest in their company. For most businesses, regardless of size, cash flow is tight and making improvements is expensive. Most small businesses need support to make their plans come to life.

When it comes to funding your business, many owners and companies aren’t fully aware of all the small business loan types they have available to them. Traditionally, when we think of business funding, we think of bank loans. But bank loans are far from the only way to fund your business – especially if you need cash, quickly.

For many small businesses, taking out a loan, whether it be from their neighborhood bank or a national bank chain, is not the best solution for their capital needs. Small businesses sometimes have a hard time getting approved by big banks because they see them as too much of a risk. In fact, in 2017 only a quarter of all traditional bank loan applicants were approved.

This was actually an improvement over the previous year; however, but all this does is highlight the struggle companies have when it comes to acquiring the financing they need to improve their business. The process that banks have put forward have only emphasized how it hard for smaller companies to qualify for the fast, instant funding they need; requiring them to look elsewhere for the best business loan solution to their business funding needs.

What is a Merchant Cash Advance?

When it’s time to explore other funding options for your business, one of the most popular alternatives to traditional loans is a Merchant Cash Advance. Merchant Cash Advances, or MCAs, are an investment in your own company. Some small business loan companies and alternative lenders, like Fast Capital 360, provide upfront cash, instantly providing you additional working capital to use however you see fit. You’ll then repay this MCA by making payments over the course of three to 15 months either in daily or weekly increments.

MCAs are a great way to get the cash your business needs quickly, but making sure you have a plan for your incoming funds is important in ensuring your business benefits in as many ways possible.

Many businesses use MCAs to:

  • Expand their office
  • Inventory sourcing for supplies
  • Help them to operate more comfortably and continue to grow.

In addition to deciding what your funds will be used for, you also need a firm understanding of how paying back your Merchant Cash Advance works.

Using a factor rate that is determined by the qualifications of you and your business, the amount you pay back receives a one time increase by that calculated factor rate. The factor rate is quickly identified and share with every company since our goal is to always be as transparent as possible. You’ll then pay back that amount in intervals over the length of your agreed upon term.

The idea is that by providing you and your business with the capital it needs to succeed, you’ll be able to make these payments more comfortably. At the same time, the purpose of the factor rate is to compensate for the risk the funding company is taking on your business.

Getting started with a business cash advance is fast, easy, and won’t impact your credit score.

Advantages of Business Cash Advances

There are many reasons that a business owner may opt for a merchant cash advance when in need of funding.

Some of the advantages of a business cash advance include:

  • Fast funding process
  • Easy to qualify for
  • No collateral required.

But, while a merchant cash advance might sound like the perfect business funding solution, it’s still important to weigh the pros and cons of all funding options available to you before making a final decision.

Business Cash Advances vs Business Loans

An unsecured cash advance is an alternative to traditional funding that fits a small business owner’s needs more appropriately.

For example, you are not forced to fit a fixed repayment schedule, giving you more flexibility in terms of how and when you make your payments. You’re also not inclined to pledge personal assets in your funding agreement, something that works in favor of many small business owners who may not be in a position to provide collateral just to receive a merchant cash advance.


  Extensive Paperwork Fixed Repayment Schedule Requirement of Collateral Payback Requirement
Business Cash Advance No No No Yes
Business Loan Yes Yes Yes Yes

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Is a Merchant Cash Advance Right For You?

MCAs are short-term solutions – These fast merchant cash advances span anywhere from 3 to 15 months, providing a short-term funding solution for a short-term need. It is important to consider if this merchant cash & capital will help you generate enough revenue to repay your MCA while still allowing you to make a profit.

While the need for additional working capital from an MCA among businesses isn’t going away anytime soon, Fast Capital 360’s fast funding has become a favorite amongst business owners of many different sizes and industries.

When evaluating a company, it’s important to us that we get the whole story. This allows us to instantly eliminate some of the potentially negative elements of a business’ history or exclude certain requirements. Our fast, straightforward approach to funding has allowed us to provide MCAs to companies with bad credit or short business histories that traditional lenders might not.

Deciding which type of instant funding works best for your company and learning about all the different types of business loans can be a real challenge as a small business owner. A merchant cash advance, like any other form of funding, has its risks; Fast Capital 360 understands the importance of this decision. That’s why we operate in a transparent and informative fashion so that every business owner and every company fully understands their options, quickly.

If you are unsure whether a merchant cash advance is the best option for your business, our passionate business advisors are ready and willing to help you make the right decision for your business’ future. Call us at 1-800-735-6107 and find the instant funding that fits your business needs today.

For more information on why Fast Capital 360 is the best choice for merchant cash advances, contact us today!

What Sets Us Apart?

  • We work with a select group of investors to minimize the number of inquiries on your credit and offer the best approvals for your business.
  • You’ll have a decision made on your application as quickly as 60 minutes.
  • Receive your funding as soon as the next business day.
  • Transparent and easily understood terms and agreements.
  • Upgraded programs for returning customers.

Find Out How Much Funding You Qualify For

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