What Is A MCA
MCA is a Merchants Cash Advance that is advantageous for businesses with unsteady cash flow or seasonal business cycles, as it’s not a fixed amount of money demanded each day, but a percentage of your sales. This can also make it hard to calculate the total cost of a merchant cash advance term sheet. Use the APR calculator below to find out what you will be paying on a merchant cash advance.
Why Not A Merchants Cash Advance
Many business owners are turning to alternative lending options and steering clear of banks and their ridiculous loan qualifications. Most online lenders are brokers that auction your application to the highest bidder, leaving you with unanswered questions. We provide a simple and direct answer. New Merchants Capital appeals to today’s entrepreneurs because we offer:
Fast and Secure Loan Approvals
Professional and Personal Service
NO Collateral Requirements
The Lowest Borrowing Rates Guaranteed!
We offer short term loans ranging from $5,000 - $600,000 that can cover a number of needs like renovations, inventory, storage, or perhaps new equipment to give your company the edge it needs.
No Hidden Cost With NMC
A merchant cash advance (MCA) is a type of financing in which a business sells a percentage of their future credit/debit sales for an upfront amount. The MCA lender gets paid by directly debiting the card receipts from the merchant’s account daily, before the business itself can access any money from sales.
An MCA is advantageous for businesses with unsteady cash flow or seasonal business cycles, as it’s not a fixed amount of money demanded each day, but a percentage of your sales. This can also make it hard to calculate the total cost of a merchant cash advance term sheet. Use the APR calculator below to find out what you will be paying on a merchant cash advance.
Business Loan Calculator Definitions
- Loan Amount
- The loan amount should be easy for you to spot — it’s the total amount the lender is offering to your business.
- Interest Rate
- The interest rate is the percentage that will be charged on the amount of money you borrow from the lender. You may have heard “APR” and “interest rate” used interchangeably, but they’re not the same thing. The APR looks at the entirety of the loan cost, including fees. That’s why it’s so important to use a business loan calculator to find out your APR — it helps you examine loan terms with different fees to make an apples to apples comparison and get the lowest-cost option that’s best for you.
- Origination & Application Fees
- An origination fee is charged by the lender as an upfront cost of processing, underwriting and issuing the loan. Application fees help cover the cost a lender incurs to check your personal and/or business credit, do a background check, etc.
- Loan Term
- The loan term is essentially the length of your loan. For business term loans, this is often expressed in months since the repayment term is shorter than other term loans, like the popular 30-year mortgage.
- Monthly Servicing Charge
- A lender may ask you to pay a monthly fee to service your loan. This fee is applied toward ongoing lender costs, similar to the origination fee.
Types Of Services