Cash Advances vs. Credit Conversion: The Smart Way to Access Capital

Why Business Owners Need Fast & Affordable Funding

Running a business comes with unexpected expenses—whether it’s making payroll, purchasing inventory, or scaling marketing efforts. When cash flow is tight, many entrepreneurs turn to credit card cash advances, but this can be a costly mistake.

There’s a better way to access working capital: credit conversion (also known as credit liquidation).

At MFC, we help business owners maximize credit strategically, avoiding high fees and interest while securing the capital they need.

What is a Credit Card Cash Advance?

A credit card cash advance allows you to withdraw cash from your available credit limit, either through an ATM or a bank transfer. However, this option has significant downsides:

• Limited Availability – Not all credit cards offer cash advances, and for those that do, access may be restricted.

• Immediate Interest – Interest starts accruing immediately, with no grace period, often at rates of 20%+ APR.

• High Fees – Most issuers charge a hefty transaction fee of 3%-5% on top of the withdrawn amount.

• Low Withdrawal Limits – Typically, cash advances are capped at 10%-30% of your total credit limit.

• Credit Score Impact – High utilization from cash advances can lower your credit score, making future financing more expensive.

• Bottom line: Cash advances are costly and should only be used as a last resort in emergencies.

What is Credit Conversion? (MFC’s Smarter Alternative)

Instead of withdrawing cash directly from a credit card, credit conversion (or credit liquidation) allows you to unlock credit as liquid funds—without the high costs of cash advances.

Why Credit Conversion is the Better Choice:

• No 5% cash advance fee – Keep more of your money.

• Leverage 100% of your credit limit – Not just 10%-30%.

• 0% APR periods available – Avoid immediate interest charges.

• Protects credit utilization – Prevents damage to your credit score.

Credit Cash Advance vs. Credit Conversion: Side-by-Side Comparison

How Business Owners Use Credit Conversion for Growth

Many entrepreneurs use credit conversion to reinvest in their business without expensive borrowing costs:

• Inventory Purchases – Secure products before revenue cycles catch up.

• Marketing & Ads – Scale campaigns for customer acquisition.

• Business Expansion – Hire staff, upgrade systems, or open new locations.

Instead of expensive cash advances, credit conversion allows you to access funding strategically.

Don’t Waste Money on Cash Advances—Use Credit Conversion Instead!

MFC helps business owners turn credit into capital the smart way, avoiding unnecessary fees and interest.

📞 Book a free consultation today to discover how credit conversion can help your business grow—without the pitfalls of cash advances!