Merchant Cash Advance
When your small business needs to maximize cash flow, a Merchant Cash Advance might be the solution.
For example, if your company has had a large purchase order, you need to pay for product to fulfill it. You’ll get that money back from a retailer when your product sells. But as a small business, how do you stay up and running, covering your expenses like payroll, rent and supplies, while you wait?
A similar problem arises for doctors and dentists. You provide a service typically covered by insurance. But insurance companies take time to pay. You might need a working capital loan to keep the lights on while you wait for the insurance company to cut your office a check.
How Much Working Capital Do You Need?
Calculating the amount of working capital your business needs comes down to a relatively simple formula. In general, working capital is the difference between current assets and current liabilities. However, that number likely changes each month as bills get paid.
A better way to gauge how much working capital your business needs is based on your operating cycle — the amount of time it takes your business to create and sell a product.
For some businesses, like a restaurant, the cycle is very short. For others, like a clothing manufacturer, it’s much more seasonal. You’ll want to take into account your cash flow during each operating cycle to determine how much working capital you’ll need.
Sometimes, the unexpected happens. Kitchens have fires, equipment requires repairs, taxes must be paid. To solve these problems, we can have the money you need deposited into your account within 24 hours.
What kinds of working capital are available?
In general, there are three types of working capital financing. These include:
- Term Loans: What you probably think of when you think of a loan — it has a set term, fees and payoff schedule.
- Business Line of Credit: These work a lot like a credit card, in that you have a line of credit limit and finance charges, and you must make a payment each month, but you can borrow and repay the loan as needed. And you can typically borrow much larger amounts than you would be able to finance with a credit card.
- Merchant Cash Advance: This financing option treats your future revenue as collateral against your financing. That means you’ll be selling a certain percentage of the future revenue generated by your business, and the funder will receive that purchased revenue as your business is paid. You can typically choose between a fixed payment, or one that fluctuates with monthly revenue.
What does it take to qualify for working capital financing?
Many businesses qualify for working capital lending, as you only need evidence that you have a business and the loan will be paid, to qualify for financing.
At Cardiff, our requirements look like this:
Credit Score
Typically, personal credit scores aren’t as important as other commercial credit factors. However, a good rule is that if your Credit Score score is over 500, you’re in the clear!
Time in Business
We look for at least 6 months of time in business.
Revenue
$20,000/month or $240,000 in annual sales with a minimum of three deposits/month.
Is US Citizenship required?
Having US citizenship isn’t required. Cardiff only requires that the business owner be a legal resident.
Ownership
Any owner can execute the contract regardless of their ownership percentage.
How to Apply
To apply for a Cardiff working capital loan, you’ll want to have a few things prepared, including:
- Your business org doc
- Most recent tax return
- 6 months of your most recent bank statements
- Drivers License
- Voided Business Check
When you have your paperwork in order, you’ll fill out an application and find out what terms your lender can offer you to keep your cash flowing as your business moves along.
Unlock Fast Capital with Merchant and Business Cash Advance Loans
Is business slower than usual? Did a key piece of equipment just quit on you? Do you wonder how you’re going to buy more inventory now when your clients still have 60 days to pay their invoices?
If you need a fast and flexible way to inject working capital into your business, Cardiff’s business merchant cash advance (MCA) loans may be the solution you need. An MCA offers your immediate access to funds based on your business’s revenue. Even if you’ve been turned away by traditional banks, you may still qualify for a business cash advance to bridge the cash flow gap and keep your business on track financially.
What Is a Merchant Cash Advance?
A merchant cash advance is a flexible form of business financing that, in many cases, advances you a lump sum of capital in exchange for a portion of your future credit card earnings or daily sales receipts. The repayment process can happen automatically with payments deducted directly from your earnings. When payments adjust with your cash flow, you don’t have to worry about costly payments during a lull in your business’s variable revenue cycles.
However, MCA repayment can also take the form of fixed daily, weekly or monthly payments. Cardiff can adjust the repayment schedule so your merchant cash advance financing fits the rhythm of your business.
And with Cardiff’s streamlined online application process, you can apply for a merchant cash advance online and potentially receive same-day funding. It is one of the fastest funding options available for businesses that need to move quickly.
Who Should Consider an MCA Loan?
Although MCA business loans are a powerful funding tool for many small businesses, they are not a perfect fit for every industry or funding need. It is ideal for businesses that:
- Process a high volume of credit card sales
- Need capital quickly and can’t wait for long bank approval timelines
- Don’t meet strict credit or collateral requirements for traditional loans
- Have fluctuating revenues but strong overall cash flow
The businesses that benefit most from a merchant cash advance include restaurants, retail stores, salons, auto repair shops, and even hospitality businesses. They regularly use MCAs to manage daily operations or invest in upgrades. Recurring daily or weekly deductions from sales transactions common in these industries keep repayment on track.
Key Benefits of Cardiff’s Business Cash Advance Options
When timing is key, a merchant cash advance is always a top funding choice. However, not all lenders provide the same application and approval experience. The lender you choose can mean the difference between getting the funding you need today or not at all. When you apply for an MCA through Cardiff, you get more than fast funding:
Same-Day Decisions and Fast Funding
With a simple online merchant cash advance application, you will know if Cardiff approves your loan in minutes. Many clients receive capital as fast as same day.
No Collateral Required
Cardiff’s MCAs are unsecured, meaning you don’t need to pledge an asset to secure your funding. You get the capital you need without risking your business or personal assets.
High Approval Rates
We work with businesses of all sizes and credit histories. If you have been in business for six months or more, can illustrate strong cash flow, and have a plan for using MCA funds, you could qualify for an MCA for a small business.
Custom Repayment
A consistent repayment schedule has advantages, but making the same loan payment when your business income slumps can be challenging. MCA payments are a fixed percentage of your sales. When sales are slow, your payment goes down, helping you maintain healthy cash flow.
If you need a small business cash advance loan that works with your operations-not against them-Cardiff can help you move forward with confidence.
How MCA Loans Work at Cardiff
MCAs Are for More Than Just Retail
While MCAs are popular with retail businesses, they are just as useful for other industries:
- Hospitality: A merchant cash advance for hotels allows owners to upgrade amenities, perform maintenance, manage off-season costs, or fund marketing campaigns.
- Personal Services: From salons to fitness centers, MCA loans help business owners manage cash flow and invest in improvements.
- Auto Services: Need to purchase inventory or hire help? Use an MCA to support growth in your auto repair shop.
Investing in your business with a merchant cash advance from Cardiff can be a smart move. With welcoming, modern amenities and services, your business is more attractive to customers, which can help boost business and increase revenue. Spending your MCA funds wisely helps your business grow while accelerating repayment simultaneously.
Why Apply for a Cardiff MCA?
Cardiff brings a unique blend of speed, support, and flexibility to our MCA funding. We’re not just a lender, and you’re not just another number. We want to be a partner in your business’s growth. Our merchant cash advance for small business exists to help business owners like you succeed. We make our process transparent, and our team is here to help you understand every step, from funding amounts to repayment terms.
With Cardiff, you avoid the confusing fine print and hidden fees often associated with traditional cash advances for business owners. Our goal is to make capital accessible, not stressful.
Ready to Apply for Merchant Cash Advance Financing?
Many small business owners use MCAs to maintain momentum or pivot when challenges arise. Cardiff MCA financing options keep your business running at full speed. Apply for a merchant cash advance online with Cardiff and get access to funding tailored to your business. Don’t let cash flow delays slow you down. Get a fast, flexible solution today.
Frequently Asked Questions
What is a merchant cash advance, and how does it work?
A merchant cash advance (MCA) is a flexible funding option in which a business receives a set amount of capital upfront and repays it through a portion of future credit card or debit card sales.
Repayments occur automatically through daily, weekly, or monthly deductions from your business’s credit card or debit card transactions. They may also be fixed payments.