Debt refinancing is an option for any company struggling with a merchant cash advance. While this is an option, it only becomes beneficial when you have more information and knowledge. Before you decide to refinance your MCA, seek proper and professional guidance. But should you refinance your MCA? Yes. This guide provides more guidance.
MCAs are Expensive
Deciding to refinance your merchant cash advance can serve your interest as you avoid the expensive repayment process. Compared to other forms of credit, MCAs are expensive due to the annual percentage rates that can go over 100%. By refinancing your MCAs, you avoid the costs and handle the debts easily.
MCAs Can Hurt Your Cash Flow
Every business depends on effective cash flow to maintain its operations. When the cash flow is slow and limited, achieving their objectives becomes hard. You should consider refinancing your MCAs to avoid a stressful repayment process that hurts your business cash flow. When you refinance your MCA, you lower the rates and increase the terms. This suits your cash flow.
You Avoid Daily Payments
Keeping up with working capital expenses can be restricted when you have a merchant cash advance. It is important to avoid this challenge and maintain a proper cash flow for your business. Refinancing allows you to keep up with working capital by avoiding high daily payments.
MCAs Can Hurt Your Credit Score
The more MCAs you have, the lower the chances of qualifying for other financing options. Most lenders will look at your credit history before approving your loans. Refinancing your MCA becomes vital as you streamline your debts and improve your credit history. This makes you attractive to other lenders.
Refinancing Gives You Better Terms
As you work on repaying your debts, you want better terms to make the process easier. This is, however, hard with a merchant cash advance. You need to consolidate your debts to get better repayment terms and service the loans effortlessly. By refinancing your MCAs, you enjoy better terms and meet your expectations.
As a form of credit, MCAs can be extremely costly. The chances of your business getting hurt because of MCAs are higher. Refinancing your merchant cash advance, therefore, becomes beneficial. Call or visit Jasema Capital today for professional guidance.