How MCA Funding Helps Minority-Owned Businesses Scale

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How MCA Funding Helps Minority-Owned Businesses
Scale
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What is MCA Funding?
Merchant Cash Advance (MCA) funding is a type of
alternative financing that provides businesses
with access to capital in exchange for a
percentage of their future sales. Unlike
traditional loans, which come with fixed monthly
payments and rigid credit requirements, MCA
funding is more flexible and can be approved
quickly.
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Heres how merchant cash advances work
Merchant cash lenders give a lump sum of cash to
the business, and the business repays this amount
through a percentage of daily or weekly credit
card sales. This makes it an ideal solution for
businesses with fluctuating revenues, as payments
adjust according to the business's actual income,
rather than requiring a fixed payment each month.
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One large advantage of MCA funding is that it
doesnt typically require collateral. This can be
highly advantageous for businesses that lack
substantial physical assets or want to avoid
putting them at risk. The MCA approval process
also focuses more on the businesss current cash
flow and projected sales rather than credit
score, making it accessible to different types of
businesses.
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Challenges Faced by Minority-Owned Businesses in
Securing Funding
Many minority business owners face challenges
related to credit history or simply having bad
credit. Additionally, biases can sometimes play a
role as well when trying to get approved for a
short-term loan.
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Studies show that minority-owned businesses are
more likely to be turned down for loans or to
receive smaller loan amounts with higher interest
rates than their non-minority counterparts.
Additionally, small business loan for female
minorities have also faced pressure. This lack of
access to equitable financing options can limit
their ability to scale and invest back into their
business. This is where alternative lending
solutions like a business cash advance can come
in handy for small business owners.
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Benefits of MCA Funding Specific to
Minority-Owned Businesses
MCA funding offers several distinct advantages
for borrowers, making it an appealing short-term
financing option when facing traditional funding
challenges.
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First, MCAs give business owners speed.
Entrepreneurs need funds quickly to manage
unexpected expenses. The streamlined application
process for MCA funding allows them to obtain
necessary funds often within days. This can be
crucial for businesses looking to expand
operations, hire new employees, or invest in
inventory when the market demands it, enabling
them to make quick decisions without long
application processes.
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Another significant advantage of MCA funding is
its flexible repayment structure. Rather than
being tied to a fixed monthly payment schedule,
repayments are directly linked to a percentage of
daily sales. This means that during slower sales
periods, businesses will pay less, alleviating
financial pressure and helping to maintain cash
flow. By providing accessible capital and
accommodating repayment terms, MCA funding serves
as a vital resource for minority-owned businesses.
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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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