{"id":901,"date":"2019-05-29T09:34:13","date_gmt":"2019-05-29T09:34:13","guid":{"rendered":"https:\/\/blog.indifi.com\/?p=901"},"modified":"2021-02-09T09:37:52","modified_gmt":"2021-02-09T09:37:52","slug":"merchant-cash-advance","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/","title":{"rendered":"What Is Merchant Cash Advance &#038; Is It The Right Loan Product For Your Business? Find Out Now."},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/blog.indifi.com\/wp-content\/uploads\/2019\/05\/Is-merchant-cash-advance-right-for-my-business-450x300.jpg\" alt=\"Is merchant cash advance right for my business\" class=\"wp-image-903\"\/><figcaption><em>Is merchant cash advance right for my business<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>As a small\nbusiness owner, there are bound to be situations, where you need quick capital.\nHave you considered availing a merchant cash advance (MCA) to meet your working\ncapital needs and to sort out cash flow problems? <\/p>\n\n\n\n<p>Here, in this guide, we show you how merchant cash advances work, the benefits, and who is it ideal for.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/#What_Is_Merchant_Cash_Advance_And_How_Does_It_Work\" title=\"What Is Merchant Cash Advance, And How Does It Work?\">What Is Merchant Cash Advance, And How Does It Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/#Features_Of_A_Merchant_Cash_Advance\" title=\"Features Of A Merchant Cash Advance:\">Features Of A Merchant Cash Advance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/#Benefits_Of_Merchant_Cash_Advances\" title=\"Benefits Of Merchant Cash Advances\">Benefits Of Merchant Cash Advances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/#Is_A_Merchant_Cash_Advance_Suitable_For_You\" title=\"Is A Merchant Cash Advance Suitable For You?\">Is A Merchant Cash Advance Suitable For You?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/merchant-cash-advance\/#How_To_Apply_For_Merchant_Cash_Advances\" title=\"How To Apply For Merchant Cash Advances?\">How To Apply For Merchant Cash Advances?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Merchant_Cash_Advance_And_How_Does_It_Work\"><\/span>What Is Merchant Cash Advance, And How Does It Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Technically speaking a merchant cash advance is not a regular <a href=\"https:\/\/www.indifi.com\/business-loan\" target=\"_blank\" rel=\"noreferrer noopener\">business loan<\/a>. Rather, it\u2019s an advance sum that a lender offers you. When you avail a merchant cash advance, the lender gives you a one-time fixed sum, which you can use for any business needs. The sum you have borrowed is repaid as small daily amounts, deducted from the credit\/debit card transactions carried out in your store. <\/p>\n\n\n\n<p>The daily amount you repay is known as retrieval rate, and it can vary anywhere from five to twenty per cent of the daily credit\/debit card swipes at your business. This rate depends on the amount you have borrowed, the daily credit\/debit card sales at your store, and the repayment tenure.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">Apply Merchant Advance Loans<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_Of_A_Merchant_Cash_Advance\"><\/span>Features Of A Merchant Cash Advance:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Repayment begins as soon as you receive funds.<\/li><li>The repayment tenure can range from 3 months to 12 months or more,\ndepending on the lender\u2019s terms and conditions. <\/li><li>The sum you are eligible to borrow depends on your average\ncredit\/debit card sales for the last 3 to 6 months. <\/li><li>A lender can advance you a sum ranging from 50% to 150% of your\nbusiness credit\/debit card sales. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_Of_Merchant_Cash_Advances\"><\/span>Benefits Of Merchant Cash Advances<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A quick and hassle-free application process<\/li><li>Immediate availability of funds<\/li><li>No need to have high credit scores for eligibility<\/li><li>No need for collateral<\/li><li>Flexible repayment schedule<\/li><li>Borrowing limit depends on your credit\/debit card sales <\/li><\/ul>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-5-reasons-why-your-business-benefits-from-a-merchant-cash-advance-ccb730e91991\/\">Top 5 Reasons Why Your Business Benefits From A Merchant Cash Advance<\/a><\/p>\n\n\n\n<p>Now, coming\nto the big question,<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_A_Merchant_Cash_Advance_Suitable_For_You\"><\/span>Is A Merchant Cash Advance Suitable For You?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A merchant\ncash advance is an excellent way to overcome gaps in your cash flow and to\nboost your short-term working capital. However, it may not be the right solution\nfor all. Here\u2019s how to determine whether a merchant cash advance is the right\nchoice for your business.<\/p>\n\n\n\n<p>You can\navail a merchant cash advance, if:<\/p>\n\n\n\n<ul><li>You require capital fast<\/li><li>You have large credit\/debit cards sales<\/li><li>Your business has fluctuating month-on-month sales\/turnover <\/li><\/ul>\n\n\n\n<p>If you meet\nthe above conditions, then a merchant cash advance may be the right loan\nproduct for you. However, it may not be the best choice for you, if:<\/p>\n\n\n\n<ul><li>You want to build your credit score \u2013 Since a merchant cash advance is not technically a loan, it doesn\u2019t contribute to building your credit score like a traditional <a href=\"https:\/\/www.indifi.com\/business-loan\" target=\"_blank\" rel=\"noreferrer noopener\">business loan<\/a>. <\/li><li>Your business doesn\u2019t have much of credit\/debit card sales daily. Since the repayment is debited automatically of your credit\/debit card sales, merchant cash advances are not the right choice for you if you have low volumes of credit\/debit card sales. <\/li><\/ul>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-7-mistakes-retailers-make-when-choosing-a-pos-and-ways-to-avoid-them-d90ddb8ae713\/\">Top 7 Mistakes Retailers Make When Choosing A Pos (And, Ways To Avoid Them)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_To_Apply_For_Merchant_Cash_Advances\"><\/span>How To Apply For Merchant Cash Advances?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not all\nlenders offer merchant cash advances. Online lending platforms like <a href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">Indifi offer merchant cash\nadvances<\/a> to all\nmerchants who meet the following three simple criteria:<\/p>\n\n\n\n<ul><li>Minimum 2 years of business operational history<\/li><li>Minimum six months card swipe history<\/li><li>Minimum monthly card transactions of Rs. 50,000<\/li><\/ul>\n\n\n\n<p>Now, that\nyou\u2019ve understood the working and benefits of merchant cash advances; check out\nwhether it\u2019s the right choice for your business and boost your working capital,\nand make use of opportunities that come your way. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a small business owner, there are bound to be situations, where you need quick capital. Have you considered availing a merchant cash advance (MCA) to meet your working capital needs and to sort out cash flow problems? Here, in this guide, we show you how merchant cash advances work, the benefits, and who is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[12,151,154,152,153,91],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/901"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=901"}],"version-history":[{"count":12,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/901\/revisions"}],"predecessor-version":[{"id":4009,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/901\/revisions\/4009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/903"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}