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The 5 Advantages of a Merchant Cash Advance for Online Businesses

A Merchant Cash Advance for online businesses is an excellent financing option!

Having an online, internet-based business has become a solid, viable business model to succeed while keeping overhead costs to a minimum. 

However, traditional banks are more apprehensive about offering a loan if your business needs financing. This can be because there is no available collateral for the bank, or the company is not conventional in their eyes.

Obtaining a Merchant Cash Advance from a non-traditional lender offers your online business to benefit from quick access to the funds you need to grow or sustain your business. 

Here are the top 5 reasons your online business can benefit from a  Merchant Cash Advance:

1) No Physical Location Needed

Most banks prefer to fund companies with a local or physical address. Your online business does not have one. 

Your online model allows you to be flexible and work from almost anywhere, and alternative lenders understand that. As long as your business takes in credit card payments, you will be eligible for a Merchant Cash Advance.

2) No Credit? No Problem!

Online businesses are often viewed as fluid and less stable. If you’ve only been in business for a few months and haven’t yet been able to build solid business credit, banks will usually have a hard time approving you for a traditional loan.

MCAs offer more flexible credit terms. Your credit score doesn’t matter to be approved for an MCA! Barring any red flags, your virtual business can be approved based on its monthly sales history – that’s about it!

3) No Collateral Needed

With an MCA, you won’t need any collateral to get approved. Most banks request a lien on equipment, real estate, insurance policies, or bank accounts, but with a Merchant Cash Advance, you’ll only have to give up your future monthly sales to get funded.

Online businesses rarely have the assets a typical bank would want for collateral. That’s why an MCA is an excellent option for funding.

4) Use the Funds How You See Fit

With a Merchant Cash Advance, you are not limited to what you use your funding. You can allocate your newly funded cash into whichever aspect of the business you decide would benefit most.

You can use your funds to

  • Upgrade your products or services
  • Implement a marketing campaign
  • Pay for new software or bills

With an MCA, you won’t need to answer to anyone. Get funded and invest in your business to grow it how YOU want.

5) Repayment is Simple and Easy

With traditional loans, the predetermined repayment amounts are usually set in stone and don’t account for the usual ebb and flow of online business sales.

By contrast, Merchant Cash Advances repayments rely on a percentage of your monthly sales. While the percentage amount doesn’t change, the amount your process can and the advance’s term will extend and shorten based on how much money your business makes.

Restrictions for MCA Use

So, what’s the catch? Even though a Merchant Cash Advance may seem simple, easy, and a no-brainer for online business, there are still some factors to consider before applying.

An MCA may not be suitable for your business if:

  • Your company has low sales volume and thin margin
  • Your business is new and doesn’t yet have a solid sales flow
  • Your business isn’t doing well (an MCA is not a bailout)
  • Your business does not process online payments

But, if your business has a predictable sales flow, a solid customer base, and needs an influx of cash upfront to reinvest, your online business should apply and enjoy the five advantages mentioned above of a Merchant Cash Advance. 

Consider Capital Quickly’s Merchant Cash Advance program if your online business requires extra working capital. We are dedicated to helping physical and virtual companies get the funds they need to reinvest and grow their business potential.

For more info on what a Merchant Cash Advance (MCA) is, follow this link here on

Please find out how Capital Quickly can help get Merchant Cash Advances for Online Businesses by calling 1-888-709-7446 or emailing us.

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