At Big Fundings, we understand the challenges business owners face when trying to secure the right kind of funding. One popular option we offer is the Merchant Cash Advance (MCA)—a flexible financing solution tailored to businesses that need immediate access to working capital.
What Is a Merchant Cash Advance?
A Merchant Cash Advance isn’t a loan. Instead, it’s an advance on future sales. Essentially, Big Fundings provides you with a lump sum of capital upfront in exchange for a percentage of your business’s future credit card or debit card sales.
This option is ideal for businesses with consistent daily sales but may not qualify for traditional bank loans due to credit scores or collateral requirements.
How Does a Merchant Cash Advance Work?
Here’s a step-by-step breakdown of how the MCA process works:
- Application
The first step is simple. You apply online at Big Fundings, and we review your business’s sales history. Our main focus is on your daily credit card receipts to gauge your repayment capability. We don’t require perfect credit, making it easier for small businesses to qualify. - Approval
After evaluating your business’s cash flow, we provide an approval decision—usually within 24-48 hours. This makes the MCA process much faster than traditional financing options. - Lump Sum Funding
Upon approval, you receive a lump sum directly into your business account. This is an agreed-upon advance based on your business’s past revenue. For example, if you’re approved for a $50,000 advance, you’ll receive that full amount upfront. - Repayment Process
Instead of fixed monthly payments, MCAs use a percentage of your daily sales to repay the advance. This percentage is automatically deducted from your business’s daily credit card transactions. The more sales you make, the faster you pay back the advance. This method offers flexibility, as slower sales days mean lower payments, reducing pressure during leaner periods. - Factor Rate
Instead of interest rates, MCAs use a factor rate to calculate the total repayment amount. For example, if your advance comes with a factor rate of 1.3, and you borrow $50,000, you’ll repay $65,000 in total ($50,000 x 1.3 = $65,000). The payments are spread out through a percentage of your sales.
Benefits of Merchant Cash Advances
- Quick Access to Capital
With Big Fundings, MCAs provide fast funding—ideal for businesses facing urgent expenses or opportunities that require immediate attention. - No Collateral Needed
Since repayment is based on future sales, you don’t need to put up assets as collateral, which reduces risk for your business. - Flexible Repayment
The repayment structure is based on your sales volume. If business slows down, your payments automatically adjust, providing relief during slower periods. - High Approval Rates
Unlike traditional loans, MCAs primarily focus on your business’s cash flow rather than your personal credit score. This makes it easier to get approved.
Is a Merchant Cash Advance Right for Your Business?
MCAs are especially useful for businesses in retail, hospitality, or other industries with consistent credit card sales. However, because of the higher cost compared to traditional loans, they’re best suited for short-term needs or businesses that are confident in their ability to generate sales.
If you need working capital for inventory purchases, equipment repairs, or expansion, a Merchant Cash Advance from Big Fundings might be the right solution for you.
How to Apply for an MCA with Big Fundings
Ready to take the next step? Applying for a Merchant Cash Advance is easy. Just visit our application page and fill out a quick form. One of our funding specialists will reach out to guide you through the rest of the process.
Big Fundings is committed to helping businesses like yours thrive with flexible financing solutions. Don’t let a cash flow gap hold your business back—apply today!