While an MCA might make sense for a business that needs cash quickly to take advantage of a short-term opportunity, it’s critical to make sure the costs of the merchant cash advance otherwise make financial sense for the business. Because qualifying criteria are much less stringent than traditional business lenders, an MCA comes with a premium cost. Nevertheless, there are business owners who successfully use this option to access capital for their businesses.
A merchant cash advance will be paid back through the deduction of a small percentage of your future sales. Seasonal businesses benefit from flexible repayment terms!
A merchant cash advance provides repayment flexibility in that the % of sales that are being purchased may change from day-to-day or month-to-month. The % of sales that are being purchased by the provider (Holdback) will not change throughout the course of your advance. Because of this, there is no set payment amount or term. However, your revenue may change and it’s important for us to adjust your payment to reflect increases or decreases in your daily or monthly sales. Elevation Capital Group provides you direct access to their Chief Reconciliation Officer who will work with you throughout the course of your advance to make sure the daily or weekly payments reflect an accurate % of your revenue. Please visit our contact page to learn more about our Chief Recon Officer.
