Merchant Cash Advance in Los Angeles
Provide immediate access to funds based on future credit card receivables
MCA Financing in LA
For a business owner that’s just starting out, getting the money to fund your venture can be hard. Especially when traditional banks won’t even consider your request without meeting certain criteria. Maybe your business requires extra cash to make the next big move or needs it to stay afloat during troubled times. If you don’t currently possess the funds to help it thrive, a merchant cash advance in LA might be the best financing alternative for you. At JSV Capital, we’re happy to walk through the process of obtaining a merchant cash advance and discuss what financing options are most suitable for you.
What Is A Merchant Cash Advance?
A merchant cash advance is an alternative financing option for business owners, separate from traditional bank loans. Essentially, it is a quick and effective way to obtain working capital. Owners receive their funds upfront from a merchant cash advance provider and then pay back the advance with a percentage of their business’s income. These payments can be made weekly or monthly and are taken out automatically. The total amount to be repaid is calculated by a factor rate based on a business’s ebb and flow of sales.
Why Are Merchant Cash Advances Popular?
Merchant cash advances are valuable for businesses that need working capital fast but don’t qualify for a traditional loan. In addition, they are a convenient alternative funding program for owners looking to either grow their business or temporarily sustain their cash flow. Here’s why merchant cash advances have become so popular:
Higher Approval Rates
Not only is the application process itself easy, but merchant cash advances are one of the easiest financing options to qualify for. They traditionally have higher approval rates and don’t require business owners to have perfect credit in order to apply. Lenders will often be much more lenient when it comes to approving businesses with bad credit.
No Collateral Necessary
For a merchant cash advance, you do not need additional collateral. Providers are more willing to lend to small businesses without personal guarantees because they are getting repaid from the proceeds, not the owner.
Flexible Monthly Payments
One of the largest advantages to a merchant cash advance is that there is no set payback amount and the scheduling is flexible. Unlike a traditional loan, payments are not set in stone and will be directly proportionate to your profits. When sales are up, you’ll be paying back more. When sales are down, on the other hand, you won’t be required to pay or will only be responsible for a lower dollar amount.
Obtaining a merchant cash advance can be done entirely online, eliminating the need for filling out complicated paperwork. However, to make the process as fast and seamless as possible, we suggest compiling important documents ahead of applying. These include having a valid form of identification and recent bank statements on hand.
The best facet about a merchant cash advance is how quickly you can receive funding. Almost all loan providers feature an easy-to-use digital application with a speedy turnaround. Applying for an MCA takes just a few minutes, getting you funding in potentially just one to two business days.
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What Do I Need to Qualify for a Loan?
How to Apply
What Do I Need To Apply For A Merchant Cash Advance?
The qualification requirements for merchant cash advances are less strict than traditional loans. They do not require a credit check, business history documentation, or tax documents for approval. However, a prerequisite for applying for a merchant cash advance is some proof of sales. Whether that be in the form of bank statements or credit card purchases. Generally, most business owners who have a positive cash flow and have been in business for at least three months will be able to get approved.
Are Merchant Cash Advances High Interest?
Since merchant cash advances are structured differently than business loans, they don’t have traditional interest rates either. Instead of an interest rate, fees for a merchant cash advance are referred to as “factor rates.” The factor rate you receive will be determined according to the lender’s evaluation of your qualifications. The includes what industry your small business is a part of, the length of time you’ve been in business, how stable your income is and your average monthly credit card sales.
To compare an interest rate to a factor rate, you will need to do a conversion. The repayment of a merchant cash advance is based on a percentage of your future business’s income, and the repayment amount can increase or decrease depending on your daily sales
How Much Funding Can I Get?
The amount of funding you can receive for a cash advance is determined more so by your business’ sales performance, plus a couple of other factors. To learn more, speak with our specialists at JSV Capital about your financial needs.
Inquire about our Business Loan programs.
We are one of the most trusted sources for merchant cash advances. Unlike most lending companies, JSV Capital provides access to quick and affordable small business funding options for all types of businesses.
Like you, JSV Capital is a small business, and we take pride in helping our neighbors secure the financing they need to grow and achieve success. Contact a reputable loan consultant at JSV Capital about how we can help you and your business get funding today.
Apply For Merchant Cash Advance Financing
No cost to apply. Applying will not impact your credit score.