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Your Key to Financial Stability Amid Multiple MCAs

BY Value Capital Funding

August 9, 2023

How is the Amount of a Merchant Cash Advance Determined?

How is the Amount of a Merchant Cash Advance Determined?

When exploring financing options for your business, it’s crucial to understand how the amount of Merchant Cash Advance (MCA) is determined. MCAs are calculated based on credit card and other monthly sales, making them a popular choice for businesses with fluctuating revenue streams.

However, as you explore smarter and more stable financing options, you might find that Value Capital Funding’s FDIC Bank Term Loans and FDIC Lines of Credit offer better-tailored solutions to meet your specific business needs.

Let’s unravel the intricacies of MCA funding amount calculations and uncover the advantages of FDIC-insured financing for your pursuit of financial growth and stability.

Understanding the Process of Calculating Merchant Cash Advance Amounts

When considering a Merchant Cash Advance for your business, it’s essential to grasp how the amount is determined. MCA providers typically assess your average monthly credit card and other sales to calculate the advance amount.

The Main Factor Influencing MCA Amounts: Credit Card & Monthly Sales as Key Metric

MCA providers may seem accommodating by analyzing your business’s past credit card and other monthly sales transactions and tailoring the advance based on potential future revenue. However, this practice, while designed to align with your cash flow, can have negative implications for your business.

The primary factor influencing MCA amounts is your average monthly credit card and other sales over a specified average monthly period. While MCA providers use this metric to gauge your revenue-generating capacity, it can lead to larger advances for businesses with higher credit card sales. While this may seem beneficial at first, it comes with a catch.

A larger MCA amount may result in higher costs and repayment challenges, especially if your business experiences a slowdown in sales or faces unexpected expenses. The tailored advance may quickly become burdensome, straining your cash flow and hindering your ability to manage other critical business expenses.

Transition to Smarter Financing: Value Capital Funding’s Approach

As you seek a smarter, more stable and less costly financing solution, Value Capital Funding’s FDIC Bank Term Loans and FDIC Lines of Credit present a compelling alternative to MCAs. With FDIC-insured financing, you can enjoy competitive interest rates, predictable monthly payments, and tailored repayment terms that suit your business’s needs.

Instead of being solely reliant on credit card and monthly sales calculations, FDIC Bank Term Loans and FDIC Lines of Credit offer stability and flexibility, empowering you to make informed financial decisions and unlock your business’s growth potential.

Unsecured FDIC Bank Term Loans: A Stable Financing Alternative

When seeking stable and reliable financing options, unsecured FDIC Bank Term Loans emerge as an attractive choice for your business. Unlike traditional secured loans that require collateral, these loans do not require pledging any assetsminimizing risk and providing added peace of mind.

With competitive interest rates, predictable monthly payments, and fixed repayment terms, unsecured FDIC Bank Term Loans offer a secure path to achieving your business goals without putting your valuable assets on the line.

The Benefits of FDIC Bank Term Loans: Competitive Rates and Predictable Payments

  • Highly Competitive Interest Rates – FDIC Bank Term Loans offer borrowers access to loans with interest rates that are among the most competitive in the market. This means you can save significantly on borrowing costs compared to other financing options.  This means more profit margin spreads in your pocket, not in  your MCA company’s bottom line profits.
  • Effective Financial Planning – With fixed repayment terms, FDIC Bank Term Loans provide predictability in your monthly payments. This allows you to plan your finances more effectively, knowing exactly how much you need to repay each month.
  • Assured Loan Terms – FDIC insurance safeguards the loan, providing an added layer of security. In the face of unforeseen circumstances or even in the event of a bank failure, your agreed-upon terms will remain intact, giving you peace of mind throughout the loan term.

Experience Flexibility with Value Capital Funding’s Tailored Financing Alternatives

Are you wondering how the amount of a Merchant Cash Advance is determined? While MCA providers analyze your business’s past credit card and other monthly sales transactions, there are potential downsides to this approach. A larger MCA amount may lead to higher costs and repayment challenges, posing risks to your business’s financial stability.

At Value Capital Funding, we offer tailored financing solutions that prioritize your business’s flexibility and long-term success. Our FDIC Bank Term Loans and FDIC Lines of Credit provide a secure and affordable path to financial growth.

With features like low-cost fixed or variable monthly payments, no upfront fees, and a quick decision within 3 to 4 business days, our loan programs are designed with your convenience in mind. Plus, our terms last from 2 to 10 years—offering you the flexibility to choose what works best for your business.

Experience the difference with Value Capital Funding’s tailored financing alternatives. Secure the funding you need to unlock your business’s full potential without compromising your financial stability. Contact us today at 800-944-6280 to explore better financing options!

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