Boost Your Personal and Business Cashflow on the Blockchain With Merchant Cash Advance

The idea behind a Merchant Cash Advance is designed in such a way as to make it possible for business borrowers to enjoy an upfront facility to ease their cash flow pressures and overcome cash constraints.

Technically, it cannot be graded like another small business loan but appropriately, it is best described as an advance granted based on your credit card sales.

Common Terms for Merchant Cash Advance

Merchant Cash Advance is also described as Merchant Cash Advances, Same Day Small Business Financing or Merchant Cash Advance Loans.

The other descriptions include Business Cash Advances, Unsecured Business Loans, No Interest Merchant Loans and Merchant Cash Financing.

Merchant Cash Advance Loans, Merchant Money Advancement Business Cash Advance or Unsecured Business Loans are some of the other names applicable.

How is Merchant Cash Advance Determined?

In considering how MCAs work, it is important as a business owner that you understand that the rates charged are really not limited and the terms are as varied as they can be. This is important so that the effect on a business can be assessed on a best-fit approach when determining the optimal size of the Merchant Cash Advance that will be viable.

In determining the size of an Merchant Cash Advance, such metrics as the aggregate of the prior period credit card inflows are assessed along with the daily cash balances and bank statements of the business. This determines the initial size of the advance that can be granted to the business.

When paying back the advance, the borrower pays back the initial advance along with a discount factor which is determined as a percentage of the receivables from credit card sales. The repayments continue on a periodic basis (which can be daily, weekly/monthly) till the expected remittances are completed.

Processing Times

For the processing times, MCAs can be disbursed within 24 hours from the application for the business to immediately utilize as deemed fit.

Merchant Cash Advances are also considered to be particularly suitable for small business owners who possess a high proportion of credit card activity and require financing at such notice.

This makes up for any poor credit history that might be plaguing their access to traditional credit providers.

Qualifying Business

Many business owners will qualify to be granted a Merchant Cash Advance provided they are able to show evidence of their historical transactions as represented by bank statements, credit and debit card receipts as might be required.

Operators of restaurants, gas stations, convenience stores, hotels as well as retail and service stations are some of the classes of business that profit from Merchant Cash Advances.

Common uses a Merchant Cash Advance may be used for are:

• Payroll
• Debt Refinance
• Marketing Campaigns
• Franchise Fees
• Expansion and Remodeling
• Leasehold Improvements
• Inventory
• Machinery and Equipment
• Furniture and Fixtures
• Licensing Fees
• Real Estate Purchase
• Working Capital

Blockchain Adoption

Blockchain adoption of retail lending is evolving with several options already available at the marketplace. Eth Lend, Dimcoin and Neblio have as lending platforms on the blockchain.

Gb Adolph Obasogie is a Chartered Accountant and the Founding Partner of Adolph Obasogie Professional Services. He is an avid follower of IOT and all things crypto. Follow him on Twitter @gbaobasogie


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