We get it: running a business is tough

A merchant cash advance provides your business a lump sum in exchange for a percentage of future sales. Unlike traditional loans, MCA payments are flexible, directly linked to daily sales, which is ideal for businesses with fluctuating revenues or longer receivables.

Our Funders evaluate the business's credit and debit card transaction history, as well as monthly deposit amounts to determine eligibility and funding amount. This is typically done by analyzing business's statements and financials.

Approved business receive a lump sum payment, usually within a few days, more frequently within 48 hours, enabling quick financial responses.

Payments are a percentage of daily or weekly credit card sales or cash deposits, allowing for lower payments during slow days.

Payments are automatically deducted, continuing until the advance is fully repaid, typically within 3 to 18 months.

MCA rates are based on various factors:

• Business Risk: Evaluates credit history and financial stability; riskier businesses may face higher rates.
• Sales Consistency: Steady daily sales can lead to lower rates.
• Market Competition: Rates can adjust based on competitor offerings.
• Financial Performance: Strong financials may result in better rates.
• Funding Purpose: Funds for high-return investments attract more favorable rates.
• Provider Policies: Each funder has unique underwriting criteria.

• Immediate Access to Capital: MCAs provide funds in hours or days, unlike traditional loans that take weeks and months.
• Flexible Payment Terms: Payments may adjust with daily sales, reducing financial strain during slow periods.
• No Collateral Required: MCAs are typically unsecured, making them accessible to businesses without significant assets.
• Use of Funds: Funds can be used flexibly for various business needs.
• High Approval Rates: Easier access for businesses with lower credit scores.

• Structure: MCAs involve calculated payments based on sales, while traditional loans have fixed monthly payments.
• Approval Process: MCAs typically have quicker approvals with fewer credit requirements.
• Cost: MCAs become less expensive if repaid quickly; whereas traditional loans may have lower interest rates spread over longer terms.
• Flexibility: MCAs offer payment flexibility; traditional loans do not.
• Use of Funds: MCAs are better for immediate needs, while traditional loans suit long-term investments.
• Risk: MCAs tie risk to sales; traditional loans have a predictable risk profile.
• Collateral: MCAs are usually unsecured, while traditional loans can be secured or unsecured.

When deciding between an MCA and a traditional loan, consider:

**Financial Needs:** Determine what the funds are for and how much is needed.

**Payment Ability:** Evaluate whether variable payments suit your business's revenue pattern.

Careful consideration of these factors can help you choose the right financing option for your business. At Birkin Capital, we strive to right-fit your capital needs to a term and repayment schedule that works for you.