If you’re a small business owner who just needs some liquid funds to get through the next couple of weeks or month, a merchant cash advance may be the best way to get the money you need. MCAs require very little paperwork or credit checks, and funds can often appear in your account within a day of asking for money.
Where can I get a cash advance on my debit card?
When you apply for an MCA, the fund you ask for can appear in your checking account within a day or less. Essentially, the MCA works as a cash advance, the bank is simply advancing you a sum of money before the invoices that you have out with your clients get paid.
One of the best things about an MCA is that you don’t have to worry about making payments on time like a traditional loan. While it is possible to have payments withdrawn directly from your checking or savings account, many customers opt to just have the money taken from their merchant transactions.
The merchant transactions, sometimes referred to as credit card payments, will not be changed or look different to the business’ customers. Clients will still swipe or enter their card details to make payments for goods and services. When paying back a merchant cash advance, however, a portion of these payments will be directed to the bank.
The result is that a business owner can get fund deposited directly into his or her account, use the money immediately to buy needed equipment or make payroll, and the bank will deal with getting the money back when the client finally decides to pay the bill. The business owner doesn’t have to worry about repaying anything from their checking account; the money is moved automatically as soon as the client pays his or her bill.
What apps will let me borrow money instantly?
There are a lot of apps that allow users to borrow money, but only a few banks specialize in merchant cash advances. Because this type of financing is only available to business owners, there are relatively few banks that deal with these products.
Many banks want business owners to fill out a lot of paperwork when they ask for a cash advance. For a business owner, this is usually more hassle than its worth. What larger banks fail to understand (or likely, just don’t want to deal with) is that small business owners often just need a small amount of cash to take care of things such as renting equipment for a large job that will pay out in a few weeks or months.
To a business owner, this doesn’t seem like high-risk lending. After all, you know which clients you can trust to pay you on time. To a corporate bank, however, advancing you just a few dollars is a major feat that will require mountains of paperwork, background and credit checks, and income verification.
For this reason, many small business owners choose not to even go to a large bank. Instead, they look for small business owners who understand the complications of running a small business. That’s when small business owners find apps that can offer them a merchant cash advance. Go to https://ikahncapital.com/ to learn more.
Instead of filling out paperwork, these apps can often have a business owner approved for a merchant cash advance in just a few minutes. Often, the only thing that is required is that the business owner let the lender know where to deposit the funds and the exact method by which they want to pay the money back.
Can I go to jail for not paying a loan?
Of course, a lot of business owners get worried that if something goes wrong, they won’t be able to pay back the money. While nearly every business owner will likely be able to pay back the loans, it’s understandable to want to plan for the worst-case scenarios.
Merchant cash advances are considered unsecured debt. That means that the business owner does not have to put up any collateral to get the money. It also means that in the event that a business owner cannot pay back the loan, their business equipment or property cannot be seized.
In the United States, it’s extremely rare to go to jail for unpaid debt. For unsecured debt, the heaviest penalty that a business owner will have to deal with is filing for bankruptcy. There are no criminal penalties for unpaid debts.
Essentially, this means that in the unlikely event that a business owner will be unable to pay back the money that was advanced to them, the business owner will not go back to jail. Typically, what will happen is that business owner will continue to make payments for as long as they can. Ultimately, however, there is very little that a bank can do if the business owner is unable to pay the money back. The business owner will not go to jail, and in most cases, it is unlikely that the business assets will be seized to pay back the money.
Merchant cash advances are a great way to get access to liquid capital. These products have been used by plenty of small business owners to pay bills, prepare for a new project or expansion, or even make payroll. It is very important for business owners to understand how these products work and what their obligations are if they choose to use one.