Merchant cash advances (MCAs) are a form of alternative small business funding that emerged after the 2008 recession in response to a growing need for accessible financing. With a simpler application, faster turnaround, and more flexible approval requirements, merchant cash advances have made more working capital available to business owners who may not be approved by the Small Business Administration or other traditional lenders like banks and credit unions.
Despite being a practical and popular source of funding for over a decade, many myths and misconceptions persist about merchant cash advances. Many of these myths come from a simple lack of understanding about how merchant cash advances work. Couple their relative youth and ease of access with the sometimes secretive tactics used by disreputable lenders and aggressive brokers and it’s easy to see why merchant cash advances have developed a bit of a bad reputation.
In reality, MCAs are a regulated and legitimate form of funding, and they can be very helpful to small business owners looking for working capital, especially if you need funding quickly and your business processes a lot of credit card transactions.
To help clear up the confusion, we’re addressing 7 of the most common myths about merchant cash advances, including the beliefs that MCAs charge exorbitant fees, are unregulated and inherently predatory, and more. Let’s jump in. Continuer la lecture de 7 Myths and Misconceptions About Merchant Cash Advances