Merchant Cash Advance with No Credit Check

Small business owners can find quick financing options with Merchant Cash Advances (MCA), which do not require credit checks. MCA direct lenders can use other information, such as business performance and three months of bank statements, to determine whether your business is approved. 

Are you a small business owner looking to invest in your business? Are you looking for a faster and easier way to access the money you need without the hassle of a business loan through a traditional bank? This article from Sunwise Capital will answer all your questions and more. 

We will explain a Merchant Cash Advance, how you can find financing options with no credit checks, and the pros and cons of using MCA. Keep reading to learn more!

No Credit Check Merchant Cash Advance (MCA) for Businesses 

No credit check MCAs can help your small business find funding more quickly than choosing a direct lender that uses credit checks.  If you’re worried about your bad credit or no credit history getting in the way of your MCA, an MCA with no credit check is the right fit for you. 

What is a Merchant Cash Advance? 

A Merchant Cash Advance (MCA) is a short-term financing option available to small businesses through MCA direct lenders. With an MCA, you will be provided a lump sum of cash (a cash advance) in exchange for a portion of future credit card sales. 

This means small business owners will be repaying the advance with a percentage of daily credit card transactions instead of a monthly payment often used in traditional loans. A Merchant Cash Advance is a great option for business owners with many daily credit card transactions. 

A merchant cash advance is not a debt. It is an advance against future purchases, meaning your MCA direct lender will debit money from your daily credit card transactions to repay the MCA. Depending on the term of your MCA, you may have weekly repayments instead. 

There is typically no grace period for merchant cash advances with daily repayments, meaning you will begin repaying the money through daily transactions immediately after the funds have been given to you. 

How No Credit Check Merchant Cash Advance Works

Business owners use merchant cash advances for immediate access to financing and then pay them off with a percentage of daily credit card sales. The rates on merchant cash advances can be high compared to other loans and are specified by the factor rate times the principal advance. 

Here is an example of the math: If a business is granted a $150,000 principal advance with a factor rate of 20% (also can be translated as 1.2), the total amount that will need to be repaid is $180,000 ($150,000 x 1.2 ). 

Payments will be made every business day (typically), but this will depend on the terms of your MCA. Your business sales performance determines your factor rate, and better performance can give you a lower factor rate. 

Getting Approved for a Merchant Cash Advance No Credit Check

Business owners can get approved for an MCA with no credit check by offering 3 months of bank statements to their chosen MCA direct lenders, having been in business for longer than six months, and having a minimum of $200K in gross annual revenue. 

By sharing their business performance and revenue based on daily credit card receipts with MCA direct lenders, business owners can be approved within minutes for a merchant cash advance. 

Pros and Cons of No Credit Check MCAs

The benefits of using merchant cash advances with no credit checks include a faster way to get financing for your business, no collateral required, and minimal paperwork. Drawbacks include repayments every business day, possibly higher costs, and factor rates. 

Pros: 

• A Faster Way to Get Financing: With no-credit-check MCAs, you can find quick financing for your business. You could be approved within minutes and have your money within hours, which is a big difference from traditional business loans that take longer to process. 
• No Collateral Required: You will not need to put up any properties or anything else as collateral for a merchant cash advance. This differs from other financing options that require collateral from their borrowers. 
• Minimal Paperwork: With merchant cash advances, you can apply online with minimal documentation needed. This makes the application process much more streamlined and reduces the chances of hiccups, allowing you to get approved faster. 

Cons: 

• Higher Factor Rates: Your MCA direct lender may charge you a higher factor rate without a credit check than if you have a high score and ran a credit check. This means your overall repayment amount will be higher than it needs to be. 
• Repayments Every Business Day: If your revenue stream is inconsistent and has slower periods, daily repayments may stress your revenue. 

Who Can Benefit from No Credit Check MCAs?

Those who can benefit from merchant cash advances with no credit checks include businesses with poor credit histories and small businesses with daily credit card sales. By finding quick funding, these business owners can use the cash advances to invest back into their companies. 

If you’re someone who could benefit from a merchant cash advance with no credit check, reach out today to a reputable MCA direct lender who can answer all your questions and more. 

Conclusion

Merchant Cash Advances with no credit checks offer small business owners the money they need at a much faster rate than a traditional business loan. Having no credit history or poor credit is not an issue as long as you have 3 months of bank statements. 

Ready to talk to an expert today about your MCA options? Look no further than Sunwise Capital! We offer business financing options in multiple states, including New York, California, and more. We provide different financing options to address your specific business needs.

We are excited to help you find the right financial option for your unique business. Contact us online or call us at 888-­456-9223 to get started. 

Frequently Asked Questions: 

Is it possible to get a merchant cash advance with bad credit? 

It is possible to secure a Merchant Cash Advance with bad credit, as MCA direct lenders will consider more than just your credit history and score. For example, they will consider your business performance and your daily and monthly credit card sales. 

What are the benefits of choosing a merchant cash advance with no credit check?

The benefits of choosing a merchant cash advance with no credit check include receiving your funding for your small business much sooner than otherwise and the possibility of bad credit not stopping you from being approved. 

Is a merchant cash advance a loan? 

A merchant cash advance is not a loan; it is a cash advance based on future credit card sales. These two financing options differ greatly in terms of repayment structure and rules. The loan application process is also much longer and more complicated than that for MCAs. 

Can merchant cash advances hurt your credit? 

While merchant cash advances do not directly report to credit bureaus, your credit may still be affected if you do not repay your direct lender and they send the account to collections.