Preserves Cash Flow
The merchant will be getting a lump sum of money to help with any cash flow, payroll problems or just to use it as a quick bridge!
Tax Benefits
MCA's may qualify for tax deductions under Section 179, allowing businesses to deduct the cost of equipment in the year they are bought.
What to consider
While MCAs can be helpful, they often come with higher costs (fees and factor rates) compared to traditional loans, so businesses should carefully evaluate the terms and potential costs before opting for one.
Eligible Businesses
Businesses that accept credit and debit cards are generally eligible for MCAs, and the lender will assess the business's sales history to determine the amount of the advance and the repayment terms.