Merchant Cash Advance Blursoft: A Fast Financing Solution for Your Business

Merchant cash advances MCAs have become a popular financing option for small businesses seeking quick capital with limited paperwork. MCAs provide funds by purchasing a portion of a business’s future credit card sales at a discount. The funds are then paid back as a percentage of daily credit card receipts over a set period.

Key benefits of MCAs include fast approvals, minimal credit checks, and flexibility in structured payments linked to sales volumes. Drawbacks can include higher overall repayment costs compared to traditional loans and daily repayment obligations regardless of sales fluctuations.

When evaluating MCA providers, businesses need to compare factors like rates, terms, flexibility in payback, and customer service. The right MCA partner can provide a financing lifeline for inventory, payroll, expansion plans, or other needs. Approaching MCAs as a short-term financing solution with rapid ROI can make them an effective option.

What is Merchant Cash Advance?

A merchant cash advance is a form of financing in which a company purchases a portion of its future credit card sales in exchange for an upfront lump sum payment. The concept is similar to getting an advance on your paycheck.

With an MCA, you receive the agreed-upon amount upfront as a single lump sum payment. This provides you with immediate access to capital that can be used for any business purpose.

In exchange, you agree to pay back the advance through a fixed percentage of your daily credit card and debit card sales over a defined period. The payback amount is automatically deducted from your credit card processing account on a daily or weekly basis.

The total cost of the MCA is determined by the factor rate and the total amount being advanced. Factor rates typically range from 1.10 to 1.50, meaning for every $1 advance, you will repay $1.10 to $1.50 until the full amount is paid off.

How Merchant Cash Advances Differ from Traditional Financing

Merchant cash advances have some key differences from traditional small business financing options:

• Flexibility – With an MCA, you do not have fixed monthly payments like a bank loan. Repayment amounts fluctuate based on your sales volume. During slow periods, you pay back less. When sales increase, you repay faster. This flexibility helps you better manage cash flow.
• Speed – You can get approved for an MCA in a matter of days and receive funding in your bank account very quickly, often within 24-48 hours. Bank loans can take weeks or months for approval. Speed of access to capital is critical for businesses.
• Credit Access – MCA providers focus primarily on your business card processing history rather than your credit scores. This helps businesses with poor credit or no credit history qualify.
• No Collateral – An MCA does not require any business or personal collateral to secure the cash advance. Your credit card receivables secure the MCA provider’s repayment.
• Use of Funds – You have complete flexibility on how to use MCA funds for your business. The money is not restricted to specific uses like equipment purchases.
• Risk – One potential downside is the higher cost of capital compared to traditional financing. Make sure you only take an amount you can comfortably afford to pay back.

Top Benefits of Merchant Cash Advances

MCAS provides a number of compelling benefits for small business owners compared to traditional financing options:

Quick Access to Capital

The biggest appeal of an MCA is getting access to funds quickly. Providers can approve your application in a matter of days and deposit the lump sum amount directly into your business bank account.

This level of speed and efficiency helps businesses cover short-term cash flow gaps or take advantage of sudden growth opportunities. Waiting weeks or months for a traditional loan approval may cause you to miss out.

Simple Eligibility Requirements

Because MCA providers focus on your credit card processing history rather than your business and personal credit reports, it’s much easier for most businesses to qualify.

You generally need to be in business for at least 6 months and process a minimum of $5,000 in monthly credit card sales. Requirements vary by provider but are more lenient overall.

Flexible Repayment Terms

One of the biggest benefits of an MCA is that repayments fluctuate based on your credit card sales volume. During seasonal slow periods or downturns, when your sales decrease, you will pay back less. When your sales volume picks up, more is deducted from your credit card transactions.

This structure helps you adapt repayment to align with your revenue streams. Traditional bank loans have fixed monthly payments that are due regardless of how your business is performing.

No Collateral Required

Because an MCA provider’s repayment is secured through your credit card receivables, you do not need to put up any business or personal assets as collateral. This gives you access to capital without putting property at risk.

Funds Usable for Any Purpose

After you receive MCA funding, you have complete discretion on how to use the money to grow your business. It’s not restricted to specific equipment purchases or uses like some loan products.

Whether it’s purchasing inventory, hiring staff, investing in marketing, or covering operating expenses, the capital can be deployed wherever it will provide the greatest impact and return for your business.

Multiple Options for Refinancing

If you need additional funding after completing repayment of your first MCA, you have the option to refinance or take out a second MCA. A good payment history on your first MCA can help secure approval for additional capital.

No Prepayment Penalties

Some alternative lenders penalize businesses for paying off financing early. With an MCA, you can pay back the full outstanding amount at any time without prepayment fees or penalties. This helps provide extra flexibility.

Predictable Daily/Weekly Payments

Rather than having variable monthly loan payments that fluctuate with interest rates, your MCA repayment amounts are predictable based on your fixed factor rate. This helps in managing your cash flow.

Drawbacks and Considerations of Merchant Cash Advances

While merchant cash advances provide a lot of advantages, business owners should weigh the following factors before obtaining one:

• Higher Cost of Capital – The lump sum MCA amount provided is generally less than your total repayment amount. Due to the high cost of capital, MCA should be used for short-term needs rather than long-term debt.
• Potential Impact on Cash Flow – Deductions from your credit card sales to repay the MCA reduce your overall cash flow. Carefully assess the percentage you can afford.
• Variable Repayment Amounts – While repayment flexibility helps in slow periods, deduction amounts increasing significantly during busy seasons could impact your working capital.
• No Interest Tax Deductions – Because MCA payments are classified as a share of sales rather than interest fees, you cannot deduct repayments from your taxes like traditional financing.
• Possible Debt Cycle – Taking multiple MCAs back-to-back rather than paying in full can lead to an accumulating cycle of debt that constantly reduces your cash flow.

While MCAs carry a higher risk than conventional loans, they provide access to capital that would not be available otherwise for many businesses. When used selectively for the right financial needs, they can be an effective tool.

Key Considerations

If you have decided an MCA is the right financing solution for your small business at the current time, it’s important to choose the right financing partner. Here are key factors to look for:

• Funding speed – The provider should be able to underwrite and fund qualified MCA applications in a matter of days.
• Amount funded – Look for providers that will finance a meaningful amount based on your monthly processing volume to meet your needs.
• Factor rates – Compare factor rates and ensure there are no hidden fees attached. The lower the factor rate, the less your overall repayment amount.
• Flexibility – Seek providers that offer flexible repayment structures aligned to your revenue.
• Customer support – Look for responsive customer service to support you before, during, and after funding.
• Reputation & reviews – Verify the provider has a solid reputation and positive client reviews online.
• Transparency – All fees, terms, conditions, and policies should be fully disclosed upfront so you can make an informed decision.
• Experience – Choose an established provider with extensive experience providing MCAs to businesses in your industry.
• Partnerships – Providers partnered with reputable credit card processing companies and banks inspire confidence.

Taking the time to vet providers carefully gives you the highest chance of success with an MCA. Check client testimonials and talk to your network to get recommendations.

Blursoft: Why It’s One of the Best MCA Providers

After reviewing dozens of MCA companies and having in-depth discussions with several providers, we decided to partner with Blursoft for financing based on their exceptional service, competitive rates, and funding flexibility.

Here are the key reasons we recommend Blursoft as a top MCA provider:

Customized MCA Solutions

Blursoft customizes its MCA offerings based on your industry, seasonal trends, sales fluctuations, and repayment capabilities. This tailored approach provides you with the right structure.

Low Factor Rates Starting at 1.2

Their published factor rates start at just 1.2, and they work to offer the lowest rate possible based on your risk profile. This saves you thousands compared to providers charging 1.4 or higher.

Quick Funding Decision & Receipt

They provide fast approvals and funding within 24-48 hours for qualified applicants. The swift process gets you access to capital when you need it.

Flexible Payment Options

You have multiple options for structuring your daily or weekly payments based on what aligns best with your revenue streams. This flexibility helps manage cash flow.

No Hidden Fees

All fees are disclosed upfront, and there are no hidden charges or penalties added later in the process. Transparency is integral to their processes.

Seamless Application Process

Their online application takes less than 10 minutes to complete. You provide just some basic details about your business and processing history for initial approval.

Strong Client Relationships

Blursoft builds strong relationships with clients over time through outstanding service. Many clients return for additional funding as their business grows.

Loan Management Tools

They provide real-time online account management tools to track your payments deducted and balance owed. This helps you monitor cash flow.

High Client Satisfaction

Over 500 Google reviews with a 4.8 overall rating demonstrate their commitment to keeping clients satisfied. The emphasis on delivering funding quickly and smoothly is evident.

After speaking in-depth with their funding specialists and reviewing their offerings compared to competitors, we are confident Blursoft provides one of the best overall MCA experiences.

Blursoft MCA Case Study

To provide a concrete example of how Blursoft provides value to clients through its MCA program, let’s walk through a case study:

Client Overview

Fulton’s Plumbing is a B2C plumbing company based in Columbus, Ohio, that has been in business for 8 years. They have 12 employees and do close to $1.2 million in revenue annually.

Business Challenge

Fulton has plans to expand their residential plumbing services due to increased demand. But their cash reserves are tied up in equipment and payroll. They need $75,000 quickly to hire additional plumbers and market their expanded offerings. With average credit, securing a traditional small business loan would take too long.

Blursoft MCA Solution

Fulton completes a short application with Blursoft. Blursoft reviews their last 6 months of credit card/debit card processing statements, showing an $85K average monthly volume.

Blursoft is able to approve Fulton’s for a $75K MCA within 2 days of applying. The lump sum cash injection allows Fulton’s to start hiring and purchasing equipment immediately.

MCA Terms

• Advance Amount: $75,000
• Term Length: 9 months
• Factor Rate: 1.3
• Weekly payments of 8% of credit card sales until $97,500 total repaid

Client Impact

The rapid access to capital allowed Fulton’s to scale up their operations quickly to capture new demand. They were able to hire 5 additional plumbers within two weeks. By having funding readily available for marketing, they generated a 15% increase in call volume by the third month.

The flexible payments ensured repayment amounts remained aligned with seasonal fluctuations in their revenue. Despite a slow month in Q1, they did not fall behind on payments. Their account was paid in full within 210 days.

How to Qualify for an MCA with Blursoft

Blursoft has straightforward eligibility requirements that most small businesses can meet to qualify for an MCA:

• Be a registered US business entity for at least 9 months
• Have a valid Social Security Number or EIN
• Have a minimum $7,500 monthly credit card volume
• Have a valid business checking account

Beyond these core criteria, Blursoft also evaluates:

• Your personal and business credit scores
• Debt-to-income ratios
• Consistent credit card sales patterns
• Length of time in business
• Industry risk factors

During underwriting, Blursoft considers your full financial profile to approve your business for the optimal MCA amount and terms.

Providing the following documents can help expedite the underwriting process:

• Last 3 months credit/debit card processing statements
• Last 3 months’ business bank statements
• Recent tax returns
• Contact information for your card processor

Having organized records will enable Blursoft to make its credit decisions quickly. If approved, you can receive funding within 1-3 business days.

What Information is Needed to Apply?

The Blursoft MCA application process is simple, requiring only the following information:

• Your name and contact details
• Legal business name
• Business address and phone number
• Industry and description
• Date business started
• Type of legal entity
• Total annual revenue
• Average monthly card volume
• Name of credit card processor
• Basic bank account information
• Requested advance amount
• How you plan to use the capital

This provides Blursoft with the key details they need to assess your eligibility. The application only takes about 10 minutes to complete and is available online 24/7.

After submitting your application, a funding specialist will contact you to gather any supplemental information needed for underwriting. They will communicate the next steps and provide updates throughout the approval process.

Blursoft MCA Application Step-by-Step

• 1) Visit Blursoft’s website and click “Get Started” on the MCA page. This will open their online application portal.
• 2) Enter your basic business and ownership details into the online form. Having your credit card processor name handy saves time.
• 3) Blursoft will review your application details, and a funding specialist will reach out if any additional information is required from you. They may request financial statements or tax returns.
• 4) Blursoft will contact your credit card processor directly to analyze your recent merchant processing history and volumes.
• 5) Based on their review of your business profile, Blursoft will determine the approval amount and present proposed MCA terms.
• 6) If you accept the proposed terms, Blursoft will email you the MCA agreement to e-sign to finalize the deal.
• 7) Once signed, Blursoft will initiate an ACH transfer of the lump sum amount to your business checking account within 1 business day.

And that’s it! The fast turnaround means you get access to growth capital when you need it.

What is the Impact of MCAs on Your Credit?

A common concern business owners have is whether obtaining an MCA will negatively impact their personal or business credit standing.

The good news is that MCA providers do not report the transaction to the major credit bureaus like Equifax and TransUnion as a loan. Since MCAs are not technically loans, there is no direct hit to your credit profile.

However, there could still be impacts on your business credit profile and score. If the MCA provider reports your account activity to the business credit bureaus, things like late payments, missed payments, or defaulting could hurt your business creditworthiness.

This is why it is critical to only use an MCA option like Blursoft, where you are confident you can maintain on-time payments based on your projected cash flow. As long as you pay as agreed, an MCA should not damage your business credit.

Tips for Getting the Most Value from an MCA

Here are some best practices to ensure you maximize the value of the MCA for your business:

• Use funds strategically – Invest the capital into business activities that will drive growth and profitability. Avoid using it for non-essential expenses.
• Monitor cash flow diligently – Track your incoming and outgoing cash flow regularly to ensure you can cover the MCA payments.
• Optimize card processing – Work with your processor to ensure you get the lowest credit card processing fees possible to maximize what is retained.
• Consider seasonality – If your business is highly seasonal, utilize an MCA during your peak season to minimize impact.
• Pay back early – If possible, based on your cash reserves, pay back the MCA early to reduce the total repayment amount.
• Refinance if needed – If you need more time to pay off your existing MCA, consider refinancing into a new MCA.

Following these tips will help ensure your MCA provides maximum benefit to your small business.

Concluding Lines

For any small business experiencing cash flow limitations and growth obstacles, a merchant cash advance can deliver the quick financing you need to take advantage of opportunities.

MCAs provide fast access to capital, flexible repayment terms aligned with revenue, and limited paperwork. When traditional bank financing is not an option, MCAs fill the void.

Blursoft offers customized MCA solutions tailored specifically to your industry, sales volumes, and future projections. This ensures the optimal structure for your needs.

Before selecting any MCA provider, do your due diligence and compare factor rates. With Blursoft’s low rates starting at 1.2 and funding delivered in 1-2 days, they provide an attractive option for financing.

Use the lump sum injection carefully and strategically to drive profitable growth for your business. With the right provider like Blursoft and disciplined use of funds, an MCA can be a strategic asset that provides your business with capital to scale.