More on MCAs

No sooner does a blog post run here at AVPS on using Merchant Cash Advances to augment cash flow for your business in tight times, than the subject starts appearing in financial news headlines. Business News Daily ran a piece on the same subject, stating “In this era of tight money, many small businesses feel that they’ve been hung out to dry by traditional lenders, a new survey shows. As a result, a growing number of companies are turning to alternative sources of funding, such as merchant cash advances (MCA).”

The survey was conducted by Merchant Cash and Capital (MCC), themselves providers of MCA’s, and found, among other things that 42 percent of small businesses using MCA’s didn’t think they’d qualify for more “regular” loans from financial institutions, though an even larger number — 57 percent — had already been declined or withdrawn their applications!

According to the article, “the MCA funds were used for expansion and growth (32 percent), purchase of inventory (15 percent), followed by payroll, paying taxes/bills and marketing, the survey found.”

Although often thought of as “expensive money,” AVP Solutions’ cash advance partner promises “rock bottom” rates, along with advances of up to 125% of monthly credit card sales, with 6-10 month terms, for businesses processing over $4,000 worth of credit sales a month (for the standard program; there are variants –inquire within!)

Industries that might be surprised to learn of their eligibility include specialty retailers, pet grooming outlets and even tattoo parlors, along with the more expected “main street” enterprises like consumer electronic retailers, restaurants, hotels/motels, and car dealerships.

The list of who might qualify is extensive, as are the facets of what’s available. Quoting an MCC spokesman, the Business News Daily article notes that “a lot of businesses use (these cash advances) as bridge or gap financing.” Further, the spokesman pointed “out that many businesses taking advantage of MCAs need funds quickly.”

And in a challenging economy like this, providing funds at all — let alone quickly, and in sufficient amounts — is always welcome for the business of doing business.

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