Business owners are always seeking reliable sources of working capital and new ways to improve cash flow. Accounts receivable factoring and merchant cash advance (MCA) programs provide working capital, but how they provide capital and how it impacts your business are completely different. We’re going to take a look at how both funding methods work from the perspective of a business owner to show the benefits and disadvantages.
Access to Capital
Access to capital is essential to every business. No one wants to wait weeks or months to get the funding they need. A merchant cash advance can take upwards of 10 business days for approval and funding. Accounts receivable factoring provides cash within 24 hours on submitted invoices.
Most financing solutions create a balance that your business must repay within a certain timeframe. MCAs do not hav