Merchant Cash Advance for Coffee Shop

Overview of a Merchant Cash Advance Loan for Coffee Shops

Merchant cash advance loans or MCA sometimes gets a bad rap. If used properly it can be a great loan. Most coffee shops don’t notice the payment because it is a factor and done daily based on credit card volume.

This type of loan can be used for just about anything that you can think of including working capital. The benefits of an MCA loan are easy to finance, you don’t need good credit, and this loan can be done very quickly. Some of the pitfalls are it will lower cash flow and will ultimately be a high-interest rate when you convert the factoring into an annual interest rate.

Use this loan as a last resort. This should be considered a “break glass only if an emergency” type of loan.

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Loan Amount

25k to 250k

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Payback Period

Payments made daily through credit card processing

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Interest Rates

This is a factoring fee ranging from 1.14 – 1.18

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Qualifying Time

Hours to a few days

What is a coffee shop merchant cash advance Loan?

A coffee shop merchant cash advance or MCA loan is a loan based on how much sales volume a coffee shop does through credit cards. This is the simplest and easiest loan for a coffee shop to qualify for. If a shop has been in business for more than 6 months and does more than 10k in credit card sales.

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Who Qualifies for a MCA coffee shop loan?

This type of financing is based on how many much sales you process through credit cards and how long you have been in business. If you do not currently have an MCA loan or it will be paid off shortly it is the easiest loan to qualify for. Business can quickly get funds based on credit card sales voulme.

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Annual Sales

50K

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Credit Score

500

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Business Age

6 Months to 1 Year

A coffee shop MCA loan will requier the following documents:

Driver’s License of the owners of the coffee shop
Coffe Shop Business Bank Statements
Profit & Loss Statements for all coffee shops combined
Personal Credit Score
Credit Card Processing Statements

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