As we approach the summer (Q3 for the finance industry) and consider the recent wave of inflation, gasoline and oil prices sky-rocketing throughout the United States, many industries have been forced to close their doors and lose out on a ton of money. Many business owners are seeking financial relief from short term bridge lending companies so many may be familiar with the term MCA (Merchant Cash Advance).
The name Kareem Chenheu rings bells in the industry. Since he began in the space, his only goal was to find businesses with a need for capital. Which often meant creating a strategy with the merchant (i.e. the business owner) for what the money would be used for and the overall return on investment the business would gain from this capital. Kareem has helped countless businesses grow and go on to produce fantastic margins. He continues to wave the Westwood Funding flag high and represents his leadership team well.
An MCA is not a business loan but should be considered a cash advance based on the volume of your credit card receipts. The funding provider gets paid back by taking a portion of your future credit card sales each day. You can usually get approved in a day or two—with very little paperwork—but you’ll likely pay for this convenience in higher interest rates. Because this option is more expensive than some other options, it’s a good way to take advantage of a short-term opportunity that requires fast cash, but it can become very expensive if you’re looking for money to bail you out of a financial bind. You don’t want to get in the habit of relying on MCAs since its higher cost can make it very difficult to manage future cash flow.