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Need Fast Capital for Your Business? Discover Merchant Cash Advance

What is a Merchant Cash Advance?

Imagine receiving an immediate financial boost without the bureaucracy of traditional loans. A Merchant Cash Advance (MCA) is an innovative and fast solution for small and medium-sized businesses needing urgent access to capital. Instead of going through the tedious bank approval processes, an MCA provides an infusion of cash in exchange for a percentage of your future credit and debit card sales, giving you the flexibility and speed your business needs to grow.

The MCA process is relatively simple. Your business receives a sum of money upfront and, in return, agrees to repay the advance through a percentage of your sales. This percentage is automatically deducted until the financial advance and associated fees are paid in full. MCA rates are typically higher than traditional loans, reflecting the higher risk the financial advance provider assumes.

History and Evolution of Merchant Cash Advance

The Merchant Cash Advance concept emerged in the 1990s in the United States as a solution for businesses that needed quick access to capital but could not obtain financing through traditional methods. Originally, these advances were offered primarily to companies in the service industry, such as restaurants and retailers, that processed a significant volume of credit card transactions.

Over time, the MCA industry has evolved significantly. In the early days, MCAs were fairly simple and were based on a fixed percentage of sales model. However, as technology has advanced and the market has grown, MCA providers have developed more sophisticated methods for assessing risk and determining advance terms. In addition, they have expanded into a wider variety of industries and business sizes.

Today, MCAs are a recognized and widely used financial tool. Their ability to give cash quickly and to have finance options based on business income has increased their appeal. This evolution has made MCAs a viable option for many companies looking for agile and affordable financing solutions.

Merchant Cash Advance vs. Traditional Lending

When considering financing options, it is important to understand the differences between a Merchant Cash Advance and a traditional loan. Here we compare their advantages and disadvantages:

Merchant Cash Advance Advantages:

Quick Access to Capital: MCAs can be approved and disbursed in a matter of days, which is way faster than bank loans.

No Strict Credit Requirements: Since the emphasis is on future sales, MCAs are accessible to businesses with imperfect credit history.

Flexible Payments: Payments are tied to daily sales, which means that repayments are proportional to business revenue.

Disadvantages of Merchant Cash Advance:

Interest: Interest rates and fees associated with MCAs are generally higher than traditional loans.

Impact on Cash Flow: Since payments are made daily or weekly, they can affect the daily cash flow of the business.

Variable Terms: Terms and conditions may be less transparent and more complex than traditional loans.

Advantages of Traditional Loans:

Lower Costs: Bank loans usually have lower interest rates and more favorable terms.

Clear Terms: The terms of traditional loans are generally clearer and standarized, making financial planning easier.

Credit Building: Traditional loans can help improve a company's credit history, which can be beneficial in the long run.

Disadvantages of Traditional Loans:

Slow Approval Process: Obtaining a bank loan can take weeks or even months due to the documentation and approval process.

Strict Credit Requirements: Banks have strict credit criteria, which can make it difficult for some businesses to qualify.

Fixed Payments: Fixed monthly payments can be a burden during periods of low income.

Merchant Cash Advance presents itself as a valuable option for businesses seeking fast and flexible financing. While its interest rates may be higher, compared to traditional loans, the ease of access and adaptability of payments make it an attractive alternative for many businesses. If your business needs immediate capital to take advantage of growth opportunities, address an emergency, or improve cash flow, an MCA could be the right solution.

Before making a decision, it is crucial to carefully assess your financial needs, compare available options, and consider the long-term costs and benefits. Consulting with a financial advisor can also help you determine the best strategy for your business.

In a business world where speed and flexibility can make the difference between success and failure, Merchant Cash Advance offers a powerful tool to keep your business moving. Evaluate your options, learn more, and choose the one that best suits your needs to ensure the prosperous future of your business.

Universum's new strategy to support your business

Universum keeps moving on the path of becoming a leader in the technological solutions environment to help businesses grow financially. With our Point of Sales System (POS), we optimize operational processes, not only by performing secure card transactions but also by strengthening business organization with essential tasks such as inventory management and sales reporting. This allows merchants to simplify their daily functions and better understand the dynamics of their business.

With the intention of helping companies successfully grow in their market, Universum is working on strategies to boost business growth through Merchant Cash Advance. With this new service, which is soon be part of Universum's offer, our clients will be able to inject capital into their businesses in a fast and safe manner, with more accessible requirements.

We want to help you grow and improve your services! If you'd like to learn more about our benefits, please contact our sales agents at 1-888-507-6614 or visit our website

If you want to know more about Universum's products and/or services, follow us on our social networks to receive accurate an up-to-date info about us.

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