You receive a sum of cash in exchange for a percentage of your future sales, which ensures the lenders will be paid back when you enter into an agreement with an MCA lender.
Unlike other short-term financing options, the creditworthiness of one’s company holds less value. What’s essential is having solid projected sales. Your prospective sales are what’s considered whenever determining advance quantities and element prices , that are found in MCAs in place of interest, to find out your price of financing.
With MCA factoring, business product sales are obtained from your credit card merchant account through bank card or automated clearing house (ACH) payments before you reach a predetermined amount. Continue reading