TRUSTCO
Serving Central Indiana - North Texas Market
Merchant Cash Advance
Accts Receivable
A Merchant Cash Advance (MCA) provides alternative financing to a traditional small business loan. Merchant cash advance providers say their financing product is not technically a loan.
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Accounts Receivable (AR) financing is a type of financing arrangement in which a company receives financing capital related to a portion of
its accounts receivable. Accounts receivable financing agreements can be structured in multiple ways usually with the basis as either
an asset sale or a loan.
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MERCHANT CASH ADVANCE
A merchant cash advance (MCA) isn't technically a loan, but rather a cash advance based upon the credit card sales
of a business. A MCA provider looks at the daily credit card receipts to determine if the business can pay
back the funds in a timely manner.
An Merchant Cash Advance is an option when a business needs access to capital quickly to take
advantage of an opportunity to purchase inventory at at discount, a special marketing opportunity or
other short term capital need , and because credit requirements are less stringent, it could be an option for
a business that does a lot of credit card transactions.
An MCA might make sense for a business that needs cash quickly but, it's critical to make sure the costs of the merchant cash advance otherwise make financial sense for the business.
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The Benefits of these programs !!
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Improves cash flow Competitive rates and terms
Many repayment programs Low Documentation
Up to 100% financing High approval rate
Many Credit Options Preserve other lines of Credit
ACCOUNTS RECEIVABLE FINANCING
Accounts receivable financing is asset-based financing that allows business owners to access capital that's secured by outstanding invoices. Accounts receivable financing sometimes known as a leveraged
line of credit or invoice financing. This loan solution can be great for a business that needs more funding
that is not readily available from a traditional lender. Many companies need additional cash flow to support seasonal demands, growth, business opportunities or solve short term cash needs.
Accounts receivable financing provides business the opportunity to grow, restructure, take advantage of supplier discounts, hire additional employees, or even fund payroll. All without having to give up equity and is less restrictive and expensive than equity financing.