When small business owners need cash fast, Merchant Cash Advances (MCAs) seem like a good solution. Read about how MCAs will actually drag your small business under and how our EasyPay loans can pull your business out of debt.
What is a Merchant Cash Advance?
Merchant Cash Advance (MCA) is one type of alternative lending available to small business owners. These advances are not classified as loans because the MCA company offers a cash amount upright that is repaid through a percentage of future debit/credit card transactions. Think of an MCA as a payday loan for businesses.
MCA appeals to many small business owners because they can get an advance approved quickly, without collateral backing, and even with bad credit. This type of lending is also appealing because the payment process seems flexible — daily deductions from sales rather than fixed monthly payments.
Why Merchant Cash Advances Are Bad For Small Businesses
Although MCAs may seem like a good solution for immediate financial need, the cost of hidden fees and tricky wording simply isn’t worth it. Take a look at this colorful infographic that illustrates how MCAs are bad for your small business in the long run.
How Opportunity Fund’s EasyPay Program Helps
Opportunity Fund’s EasyPay loan program provides an easy-to-get, affordable alternative to expensive Merchant Cash Advances. With an EasyPay loan, small business owners like you can get a loan from $5,000 up to $100,000 for working capital and refinancing your current MCA.
- Unlike MCAs, EasyPay takes a more affordable percentage of your monthly credit/debit card receipts.
- Reduce your APR from over 80% down to 15% on average.
- No hidden fees or pre-pay penalties, with only a 5% loan funding fee.
- Reduce your monthly payments by up to 75%.
If you currently have an existing MCA, Opportunity Fund can help refinance your balance with much lower payments and lower interest rates. As a responsible lender dedicated to helping small business borrowers succeed, we make sure you can comfortably repay the loan, maintain positive cash flow, and maintain good credit.
For information about Opportunity Fund’s small business loans, please contact us at 866-299-8173 or firstname.lastname@example.org. For questions about your existing loan or other customer service questions, please contact us at 866-299-8173 or email@example.com.
Opportunity Fund is California’s largest and fastest-growing nonprofit lender to small businesses. Last year, we made $37M in loans to help more than 1,800 small business owners invest in their businesses. Opportunity Fund invests in small business owners who do not have access to traditional financing. As a founding member and signatory to the Borrower’s Bill of Rights, we believe in the important role small businesses play in our community and the economy, and we aim to help owners financially succeed.