GoKapital Merchant Cash Advance Loans
Merchant Cash Advance Loans
A loan is one of the options through which an entrepreneur can secure funds to start or expand his or her business. Moreover, entrepreneurs can use a loan to build their credit, pay suppliers, purchase more inventories, or to market their business.
Regardless of these benefits, most business owners find it hard to secure loans since they can hardly meet the strict credit requirements used by traditional lenders like banks to deny or approve loan applications.
Are you one of the unfortunate business owners who has found it hard to secure a bank loan? If you are, you should consider Gokapital’s merchant advance loans as another alternative. Continue reading our merchant cash advance blog to know why a merchant advance loan is ideal for your business and why you would want to secure it from GoKapital.
Based in Miami Florida, GoKapital is a leading provider of merchant cash advance loans to business owners who are looking to sell part of their future revenues or credit card sales to acquire capital.
GoKapital is famous because it serves more than 50 states, it offers a high MCA limit, provides fast approvals and an outstanding customer service. The advance is available to all entrepreneurs provided that they have been in business for over four months.
How Does The Merchant Advance Work?
Ideally, a merchant advance is not a loan but a sales agreement whereby the lender gives you an advance in exchange for a percentage of your credit card sales. As such, the MCA lender determines your advance limit using your business’ credit card receipts.
Before the MCA lender transfers the funds into your account, he or she will provide a detailed loan agreement form showing the advance amount, the amount you are expected to pay back, and the loan term. The pay back amount might be 20 to 40 percent more than the amount you borrowed.
In most cases, repayment will start as soon as the funds are transferred into your account. Each day, the MCA lender will hold a percentage of your credit card receipts till he or she recovers the advanced amount. The lender will adjust the payback amount according to your business’s credit card transactions.
Benefits of Merchant Cash Advance
A MCA is an easy and quick way in which small and mid- size enterprises that lack collateral or have a weak credit to qualify for the conventional bank loan can secure funding. Other benefits of a merchant capital funding include:
1. It comes with less risk compared to other forms of financing
As we all know, the conventional bank loan places your business at a risk of losing the collateral or even tainting your credit score if you default or repay the loan late. Unlike the bank loan, the MCA will not affect your credit score since it is more of a sales transaction than an issue of credit. Indeed, collateral is not even required to secure the advance.
2. Easy application and approval
Securing a merchant cash advance entails a straightforward process from the start to the end. This is because the MCA lender evaluates credit risk in a simpler way than that used by traditional lenders.
Basically, the process entails checking your monthly credit card revenue and the age of your business. Afterwards, the lender will seal the deal and transfer the advance into your bank account.
3. The Advance Is Processed Quickly
While banks can take several weeks or months to transfer the loan into your account, a MCA lender will transfer the funds into your account within a few hours or days. For this reason, a MCA would be an ideal way to secure quick cash to sort urgent business issues like seizing a short notice business opportunity or paying your creditors.
4. Repayment is based on your business performance
Another advantage of a MCA is that the loan repayment is based on your business’s sales volume. For instance, you will have to pay a higher monthly installment when your business generates more profit. On the other hand, the MCA lender will scale back the monthly installments in the period when your business makes little income. This saves you from the financial strain associated with repaying a bank loan.
5. There are little or no restrictions on how you can use the money
Unlike a bank which will require you to use the loaned amount to perform specific business activities, the MCA lender gives you the freedom to use the loan as you wish. For this reason, you can use the cash to market your business, expand your business, and pay your employees or venture into a new business.
6. High borrowing limits
Another good thing about a MCA is that lenders are more generous than most banks. Therefore, you can receive as little or as much as you need, provided that the MCA lender ascertains that your credit card sales are adequate to let you settle the advance within the stipulated time.
What Business Enterprises Can Benefit from Gokapital’s Merchant Advance Loans?
Ideally, GoKapital serves almost all small and medium businesses looking to secure a merchant advance to support various business processes. Some of the companies that would benefit from GoKapital’s merchant advance loans include:
- Flipping companies
- Real estate companies
- Small businesses
- Retail stores
- Healthcare facilities
- Auto repair shops
- Construction companies
- Any other businesses
How to Apply For Gokapital’s Merchant Advance
GoKapital boasts of a straightforward MCA application process that you will hardly find in other merchant cash advance lenders in Florida. You can apply for the MCA online or do it at their physical store. Below is their detailed application process.
1. Complete the application form
The first step entails filling the loan application form with basic details like your official names, social security number, your business tax identification number, your business location, and any other essential information regarding your business.
2. Provide copies of your business and financial documents
After completing the loan application, you will be required to provide various business and financial documents that will be used to assess your business’s financial health as well as your identity. Some of the documents include the latest bank statements, your government- issued an identification card, and a statement showing your business’s credit card transactions.
3. Approval process
After completing the loan request form and providing the necessary documentation, GoKapital will approve the advance in exchange for a defined percentage of your future credit card sales. Typically, GoKapital will transfer the cash advance within 20 days after they accept your loan request.
The cost of Gokapital’s merchant cash advance loans
Unlike a bank loan, the merchant cash advance financing’s payback amount is calculated using a factor rate rather than the interest rate. Usually, the factor rate is expressed in a decimal point, and it generally ranges between 1.1 and 1.5.
Why would you choose GoKapital for your merchant cash advance financing?
Some of the reasons that make investors choose GoKapital over other lenders include:
1. GoKapital’s financial advisors who are always available for consultation
Unlike most lenders, this lender works with a dedicated team of advisors who offer a free consultation to clients. You can take advantage of these free services to make sound financial decisions.
2. GoKapital is a reliable lender
GoKapital boast of higher approval rates than most MCA lenders in Miami Florida. It is because the lender collaborates with chief credit unions, mortgage lenders, and many more financial institutions. Besides working with leading financial institutions, the MCA lender is always in constant search of technological solutions to facilitate easy and fast application.
3. Excellent customer care
GoKapital is dedicated to meet if not exceed their customer’s expectations. We would say this since the lender offers a transparent application process alongside serving clients with integrity and excellence. This MCA lender also works with an experienced team of professionals like entrepreneurs and technology experts who work to help your business succeed.
4. GoKapital’s minimum qualifications are simple
Unlike the traditional lender who can only fund established companies with an attractive credit history, Gokapital offers loans to any business as long as it has been running for at least four months and is making monthly gross sales worth $10,000. Moreover, any business can qualify regardless of their Fico score.
5. GoKapital values the minority
GoKapital believes that every entrepreneur deserves an opportunity to excel. For this reason, veterans, Latinos, and women in business are highly encouraged to apply for a merchant loan advance.
6. You can receive as much as $5,000,000
Another reason why you would want to get your loan from this service provider is that you can qualify for as much as $5,000,000 as long as your business makes reasonable credit card sales per month.
7. The company operates in more than 50 states
Despite the fact that this MCA lender is headquartered in Miami, Florida, it also serves clients from Canada, Puerto Rico, and 50 states in America. You can visit their official website or contact them to know if they serve your state.
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