FAQ
Answers to frequently asked questions. Have another question you don’t see below? Reach out to us!
How is a Merchant Cash Advance different from a traditional business loan?
Unlike traditional business loans, which are often based on your credit score and require collateral, a Merchant Cash Advance is based on your future revenue. It’s generally easier to qualify for an MCA, and repayment is tied to your sales, making it a more flexible option for many small businesses.
What happens if I cannot repay the Merchant Cash Advance?
If you’re unable to make your daily or weekly repayments, you should contact us via phone or email as soon as possible. We may offer several options for adjusting the repayment schedule if applicable. It’s important to communicate with us and not avoid communication to avoid default.
Will a Merchant Cash Advance affect my credit score?
Merchant Cash Advances do not directly impact your personal or business credit score since they are based on future sales, not credit history. However, your ability to repay the advance on time can affect your business’s financial reputation and relationship with the funder.
Can I pay off my Merchant Cash Advance early?
Yes, Honest Funding allows early repayment of any cash advance. In fact we provide discount incentives to anyone looking to pay off early. The prepayment incentive is usually found on the backend of our contract. If you are not sure, feel free to contact us.
What happens if my business has a slow month?
One of the advantages of an MCA is that repayment amounts are flexible. If your business experiences a dip in revenue, your repayments will decrease as well. This helps ensure your business can continue operating without the strain of fixed payments.
