Merchant cash advances (MCAs) have become a popular financing option for small and medium-sized businesses in Oklahoma City, providing quick access to much-needed capital. In this comprehensive article, we’ll explore the benefits of MCAs, how they work, and the top MCA companies in the Oklahoma City area.
What is a Merchant Cash Advance?
A merchant cash advance is a type of business financing where a funder provides a lump sum of money in exchange for a percentage of the business’s future credit card or debit card sales. Unlike a traditional loan, an MCA does not have a fixed repayment schedule or rate. Instead, the funder takes a percentage of the business’s daily or weekly credit card and debit card sales until the advance is repaid.
Benefits of Using a Merchant Cash Advance for Your Business
Faster Funding: MCA providers can often approve and disburse funds much faster than traditional funders, sometimes within a matter of days.
- Flexible Repayment: Repayment is tied to your business’s sales, so you only pay back the advance as you generate revenue. This can be especially helpful during slow periods or seasonal fluctuations.
- Easier Qualifications: MCAs generally have less stringent eligibility requirements than bank loans, making them accessible to a wider range of businesses.
- No Collateral Required: Most MCA providers do not require the business owner to put up personal assets as collateral, reducing the risk.
Factors to Consider When Choosing a Merchant Cash Advance Company
When selecting an MCA provider in Oklahoma City, it’s essential to consider the following factors:
- Reputation and Track Record: Research the company’s history, customer reviews, and industry standing to ensure they have a proven track record of reliable service and fair practices.
- Transparency of Fees and Terms: Carefully review the MCA provider’s fee structure, including the factor rate, fixed percentage of sales, and any additional fees. Ensure the terms are clear and transparent.
- Funding Speed: Evaluate how quickly the MCA company can disburse funds, as this can be a critical factor for businesses in need of immediate capital.
- Flexibility and Customization: Look for an MCA provider that offers flexible repayment terms and the ability to customize the funding amount and advance percentage to meet your specific business needs.
Top Merchant Cash Advance Companies in Oklahoma City
Here are some of the top merchant cash advance companies serving businesses in Oklahoma City:
| Company | Funding Speed | Fees |
| REIL Capital | 1-3 business days | Factor rate: 1.10 – 1.49 |
| Ballista Capital Funding | 2-5 business days | Factor rate: 1.10 – 1.40 |
| Western Shamrock Finance | 3-7 business days | Factor rate: 1.20 – 1.45 |
| Castlelake | 5-9 business days | Factor rate: 1.18 – 1.55 |
Steps to Apply for a Merchant Cash Advance
Applying for a merchant cash advance in Oklahoma City typically involves the following steps:
- Gather Required Information: Collect details about your business, such as revenue, credit card sales, and bank statements.
- Complete the Application: Fill out the online application provided by the MCA provider, including details about your financing needs and business operations.
- Submit Supporting Documents: Provide any additional documents requested, such as business licenses, tax returns, or bank statements.
- Receive Funding Offer: The MCA provider will review your application and provide a funding offer, including the advance amount, factor rate, and repayment terms.
- Accept the Offer: If you agree to the terms, you can accept the funding offer and the MCA provider will disburse the funds to your business.
Qualifications and Requirements for Obtaining a Merchant Cash Advance
The specific qualifications and requirements for obtaining an MCA in Oklahoma City may vary among providers, but generally, you’ll need to meet the following criteria:
- Minimum Monthly Sales: Most MCA providers require a minimum of $10,000 to $50,000 in monthly credit card and debit card sales.
- Time in Business: Businesses must typically have been operating for at least 6 months to 1 year.
- Credit Score: While MCA providers may have more flexible credit requirements than traditional lenders, a minimum personal credit score of 500 is often required.
- No Bankruptcy: Businesses and business owners must not have filed for bankruptcy within the past 12 to 24 months.
Alternatives to Merchant Cash Advances
While merchant cash advances can be a valuable financing option for businesses in Oklahoma City, they may not be the best fit for everyone. Here are some alternative financing options to consider:
- Small Business Loans: Traditional bank loans or SBA loans can provide longer repayment terms and a lower cost of capital, but may have more stringent eligibility requirements.
- Business Lines of Credit: A business line of credit offers flexible access to capital as needed, with interest-only payments on the amount borrowed.
- Invoice Factoring: Invoice factoring allows businesses to sell their outstanding invoices to a third-party provider, who then advances a portion of the invoice value.
- Equipment Financing: Businesses can obtain financing specifically for the purchase of equipment, machinery, or vehicles needed for their operations.
Conclusion
In conclusion, merchant cash advances can be a valuable financing tool for businesses in Oklahoma City, providing fast access to capital and flexible repayment terms. By understanding the benefits, how MCAs work, and the top providers in the area, you can make an informed decision to boost your business’s growth and success.
