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What is a Merchant Cash Advance or MCA?

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.

 

 

Merchant Cash Advance (MCA) Features

  • Easy on cash flow
    Variable daily repayments to maintain steady business finances
  • Short term
    3 to 12 months
  • Unsecured cash advance
    No security required
  • Minimum paperwork (low doc loan)
    No financials, tax returns or BAS for loans under $75,000 in most cases
  • Quick approvals
    Same Day Approvals
  • Repayments
    Small daily direct debit
  • Fund amount
    Up to $500,000
  • Renewals
    Fast and simple renewal process
Apply Now

Or call 1300 760 930

How does a Merchant Cash Advance work?

 

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;

  • Accept credit card or EFTPOS payments from customers
  • Want to avoid a steep payment at the end of the month
  • Have fluctuating sales, so you want to pay as you go
  • Are looking for a fast and straightforward business finance solution

 

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:

  • Purchasing stock

    Purchase stock or inventory in bulk to get discounts or prepare for a busy period.

  • Renovating and refurbishing

    Jazz up your interior or exterior. A Merchant Cash Advance can help pay for a building extension, redecoration, and more.

  • Buying new equipment

    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.

  • Staffing costs

    Hire new team members for busy periods, or invest in skills training. A happy, knowledgeable team will serve your business well.

  • Technology and automation

    Spend less time on the day-to-day admin and more time growing your business.

  • TAX

    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.

 

Does my business qualify for a Merchant Cash Advance or MCA?

  • $15,000+ in monthly turnover
  • Regular EFTPOS/Credit Card settlements
  • 12+ months in business
  • Active ABN or ACN
  • Over 18 years of age
  • Australian Citizen or Permanent Resident
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