How to build credit with a Merchant Cash Advance

What is the Merchant Cash Advance?

Merchant Cash Advance or MCAs are a type of business borrowing that is not a standard loan. You (small business owner) borrow money on your daily credit/debit sales or batch out s. The small business owner then makes daily repayments to the lender. 

These payments are considered flexible since you are not paying the same amount every day. Instead, you’ll pay back a percentage of your daily batch outs to the lender. MCA is a product specifically designed with small business owner’s seasonal sales in mind.

Credit and Merchant Cash Advance

credit,merchant cash advance

If you already have-nots, you should read our post that helps you build and Improve Business Credit Lenders using private. The purpose of this article is to zoom in on the MCAs positively impact your credit. If you have not, then you will want to build your credit, then you must show that you can borrow and repay the money.

Below you’ll see why Merchant Cash Advance is one of the best things you can do to build your credit. Let’s recap; There are three simple steps to building credit:

  1. Open a business bank account to separate transactions for easy tracking
  2. Borrow money to exercise your credit
  3. Achieve explosive growth in your business with borrowed money

1. They are easy to follow you

One of the best things about an MCA is that to receive one, you have a business bank account and a POS system. Having a complete digital solution allows for seamless tracking between you, the payment processor, the bank and the lender. Lenders can check your daily batch outs by connecting with the payment processor. Having an MCA provides you with the best results for your business.

2. The safest way to borrow and boost credit rating

2. The safest way to borrow and boost credit rating

Merchant Cash Advance is a Canadian small business owner. As long as your business is transacting and batching out, you will be able to repay your borrowed amount. This is the way you are going to be close to business, you are not paying anything! MCAs work with your business’ ups and downs – you only pay when you get paid. In addition to representing a percentage of your sales, MCAs require no upfront collateral. Going with a bargain cash advance eliminates the requirement of paying a specific amount every month.

3. MCAs are directly attributable to business growth

In this case, you need a better chance of getting a fair assessment. It’s just a click away for you to supply all of this information to the merchant cash advance lender. Since you can see your daily POS terminal transactions, they are better able to estimate and measure your current and future business growth. If your business has grown in daily post-funding, then it’s an indication that you’ve used the funding to grow your business successfully. This shows the day that your business can turn to decent profit with financing.

Merchant Cash Advance is the best way to increase your credit

Merchant Cash Advance is the best way to increase your credit

Merchant Cash Advances are the ideal financing choice for any business that has daily debit / credit sales. They are designed to support your business’ ups and downs, instead of working against them. Since they are a daily repayment, it shows that you are consistently on top of repaying your funding amount. MCAs are designed to be automated and allow you to focus on your business.