If you’ve got exciting plans to grow your business, a Merchant Cash Advance (MCA) could be the perfect solution.
A merchant cash advance (MCA) is a lump sum payment to a qualified small business in exchange for a percentage of future credit card and/or debit card sales.
As an alternative to traditional business finance, the MCA is designed to match the cash flow of your business, so rather than being a fixed sum each month or fixed daily repayments being taken directly from your bank account, a small percentage of the businesses credit card and EFTPOS terminal sales are repaid daily for the term of the cash advance.
Every time someone spends money with your business through the card terminal, you’ll automatically repay a small percentage of your Merchant Cash Advance. Basically, you only repay when cash comes into your business giving you better flexibility to manager cash flow during slower periods.
The borrowed cash can be used for any aspect of the business which needs it: from the purchase of capital equipment, machinery and supplies through to staff wages or bill payments.
Once your merchant cash advance has been agreed, how your business spends the money is entirely up to you. Unlike a mortgage or vehicle purchase loan, a merchant cash advance has no expenditure parameters. This results in it being an adaptable, versatile form of finance that’s appropriate for many different types of business.
It’s ideal for businesses who accept credit and debit card payments from their customers; like retailers, pubs, bars and restaurants.
An MCA is quite different from a conventional business loan, but the premise is really simple. The main difference between a merchant cash advance and a traditional loan is that the repayments are paid back on a percentage (factor) basis, rather than as a series of regular, equal instalments.
A Merchant Cash Advance is designed for small businesses and sole traders that;
A Merchant Cash Advance is a great way to boost cash flow in your small business. You can use your lump sum to pay for essential business purposes such as:
Purchase stock or inventory in bulk to get discounts or prepare for a busy period.
Jazz up your interior or exterior. A Merchant Cash Advance can help pay for a building extension, redecoration, and more.
Invest in the best for your business. Top of the range equipment can help you become more efficient and impress even more customers during your operating hours.
Hire new team members for busy periods, or invest in skills training. A happy, knowledgeable team will serve your business well.
Spend less time on the day-to-day admin and more time growing your business.
If you need to take advantage of the ATO Instant Asset Write Off before the cut-off date, you can have funds within 24 hours
A Capify merchant cash advance or MCA account is the new normal for most businesses today. Especially online businesses that accept payments by credit and debit cards via any branded card terminals (such as Tyro, Commonwealth Bank, ANZ, NAB, St George, Suncorp, and others) at the point of sale and online payment gateways.
Consumers expect to be able to pay by card, it’s considered a safe and convenient payment method.
In 2019 Australians used cards to pay for 72% of goods and services, up from 86% in 2017.