Determine the total cost of your advance.
Getting preapproved has never been easier.
See if you qualify for a merchant cash advance
New York Tribeca Group helps your business success by you on the cutting edge of business financing opporties today. We value the overall health of your business and bring options that are not readily available in the traditional financing market.
Time in Business
We evaluate how long you’ve been in business and repayment history.
We look at your annual revenue and review your daily balances.
Don’t worry, your credit score or defaults won’t be the deciding factor
What is a merchant cash advance?
MCAs provide small businessesMCAs give working capital to small enterprises, which is backed up by future bank and credit card deposits. An MCA, unlike a traditional loan, gives you a flat sum of cash in exchange for future sales. with working funds backed up by future bank and credit card deposits. Unlike a typical loan, an MCA will give you a lump sum of money in exchange for future sales.
What Is an ACH merchant cash advance?
Rather of looking at an applicant’s credit card processing statements to determine whether or not to finance and how much, an ACH MCA lender will look at the small business’s deposit and cash flow statements to determine the amount of the advance.
The advance is subsequently reimbursed by Automated Clearing House (ACH) withdrawals, which are daily or weekly debits from the business’s bank account. These remittances are pre-determined and take place over a specified period of time, usually 3 to 18 months.
ACH advances are available to all small business owners, not just those with strong credit and debit card sales, because they are based on overall sales.
Let’s look at the charge structure for merchant cash advances now that we’ve established them and their variations.
Merchant cash advance fee structure
- MCA factor fees totaled
- If you get a $30,000 cash advance with a factor rate of 1.30, you multiply the amount by the rate.
- $30,000 multiplied by 1.30 equals $39,000.You would pay the MCA provider $39,000 0 for a loan of $30,000. The cost of the advance would be $9,000.
How lenders determine MCA factor rates
When applying for financial aid, many business owners worry that their credit score will be the deciding factor. When making a choice, lenders consider more than just a credit score. The most important factor in establishing advance amounts and rates is predicted sales. Projected sales are the most critical factor in MCA funding. As a result, anticipate lenders to scrutinize your company’s credit, debit, and cash flow figures thoroughly.
In addition, a lender will consider:
- Credit history
- Length of time
- Sales and growth
It’s easy as one, two, three: How to use the MCA calculator
Now that we’ve covered the basics of the MCA online calculator, let’s look at how to get the most of it. (It’s crucial to understand that this calculator is just for ACH transactions before you begin.)
Calculate the amount you want to spend and enter it into the MCA calculator.
Next, calculate and input the predicted factoring rate. These rates range from 1.10 to 1.30 percent.
After that, pick how long you want your estimated term to be. A merchant cash advance takes about nine months to repay on average. However, your term can last anywhere from three to 24 months.
The calculator will add up all of your figures and give you a total payment amount. The difference between daily and weekly frequency can be seen.
We encourage that you experiment with different scenarios with factor rates, terms, and advance amounts, whether you have specific numbers in mind or are unsure where to start. This can assist you in determining what you can and cannot afford, as well as determining the best plan for you.
When to consider a merchant cash advance
You may only require a short-term loan to cover rent or payroll. In this instance, a merchant cash advance might be the ideal alternative for short-term cash flow problems. An MCA can also be useful for new equipment purchases, manufacturing demands, and any other business expenses.
Before deciding on a merchant cash advance, have a look at your business plan. Consider the following questions:
- Are my sales forecasts accurate?
- With my current income flow, can I afford it?
- Will I be able to make my payments on time?
Overall, you want to make sure that you can meet your other financial commitments while still running your firm.
How to qualify for a merchant cash advance
t’s essential to familiarize yourself with some of the words before digging into something you may not be familiar with. In addition to the MCA’s breakdown, specific numbers and their structure must be learned.
Things to consider before you begin
Starting a small business entails a large number of duties. Many entrepreneurs will begin their venture by taking out a loan. The most prevalent issue is that people do not consider how to consolidate debt before becoming trapped in overdue obligations.
If you’re thinking of taking out an MCA, our calculator can help you figure out how much money you’ll need. This calculator will provide you an accurate estimate of your total advance as well as a payback schedule. You provide the numbers, and we provide the results. That’s all there is to it!
How to qualify for a merchant cash advance
Accessing funding for your business is now easier than ever. With online technology, funders can now easily underwrite a business with minimal paperwork and documentation required.
Here’s what you’ll need to qualify:
- 3+ months in business
- $110K+ annual revenue
- 550+ credit score
Got some questions?
With an MCA, it’s not an actual loan but a cash advance based on the credit card sales deposited into a business’ merchant account.
Applying for one is rather simple. Once approved, you access your funds within 24 hours.
Once you receive credit card sales, you can apply for an MCA. You’ll need to provide bank statements from your business and credit card statements as well.
You’ll obtain your advance which is usually directed into your account. After that you’re set to go. Automatic repayments will occur so be sure the money is in the account when the time comes.
In some cases, yes, debt isn’t always a bad thing. In larger projects, debt is used for growth. Taking it on and paying it off, debt is needed to help build your credit score which allows you to get better interest rates on any loans you take out.
Fast payments and easy qualifications are popular reasons for why many business owners choose MCA’s as their kind of financing.
Make sure to consider that they do come with high fees and lack of business control as well.
The cost of an MCA depends on the length of your advance and the factor rate on it.
The price will be discussed when coming to the term agreements.
All it takes is 5 minutes of your time. Fill out our online application or give us a call and speak to one of our representatives who can help guide you through it.
Credit score, length in business, and monthly revenue are all factors considered when deciding your application status.
Meeting minimal requirements still gives you a likely chance.
Take an overall look at your business and ask yourself: is it in good standing? Most lenders want to provide you with the best options possible. In order to do that, they take a look at the health of your business.
A good credit score is important but it is not the major key to making or breaking your approval rate for a line of credit.
A helpful tip: be sure to make your minimum payments on time. Try and pay more than the minimum when possible to help pay off your loan sooner and keep your account in good standing.