Merchant Cash Advance
The Merchant Cash Advance Program is ideal for businesses that might not want, or cannot qualify for a traditional loan. By basing the funding amount you qualify for on the volume of your credit card or gross sales, the Merchant Cash Advance program allows us to convert your future credit card receivables into the immediate capital you need. Whether the funds are needed to expand, renovate, or simply reduce debt, access to capital can empower your business to thrive, and the Merchant Cash Advance Program can be the source of that success.
When Should A Business Choose Merchant Cash Advance?
A Merchant Cash Advance is appropriate for a business if:
- A business accepts credit cards as a form of payment from its customers.
- The aim is to have flexibility regarding repayment rather than the liability to pay monthly minimums
- The enterprise has irregular sales flow and repayments might fluctuate as well
What Can Be Funded Through Merchant Cash Advances?
- The loan can help in raising money for the purchase of inventories.
- The cash can be used for advertising and marketing promotions.
- Such loans can boost cash flow of a business and can help in hiring new employees, renovations and expansion.
Merchant Cash Advances can be extended to those businesses who have been receiving payments from customers through credit cards for more than 60 days. Most of the lenders prefer to lend to those merchants who record a minimum of $3,000 credit card sales each month.
HOW THE MERCHANT CASH ADVANCE PROGRAM CAN BENEFIT YOU:
- You may qualify for up to 85-250 % of your monthly credit card processing sales volume, and use the funds for virtually any business purpose.
- Instead of fixed payments required by most traditional banks, repayments are linked to your business’s daily credit card sales. When sales are slow, payments are minimal and automatically applied until your balance is satisfied.
- An experienced Account Executive will be assigned specifically to your account to assist you throughout the financing process.
- Approximately 90% of our Merchant Cash Advance clients participate in the program more than once. In fact, the average customer renews about ten times!
- You don’t need a stellar credit history to qualify. Getting a Merchant Cash Advance is faster and easier than obtaining a traditional loan, making your much needed capital more accessible when you need it quickly.
How a merchant cash advance works:
A merchant cash advance is financing for companies that have credit or debit card sales, such as restaurants or retail businesses. Unlike a regular loan, which is repaid on a fixed schedule (typically weekly, biweekly or monthly), MCAs are repaid daily. A percentage of your credit or debit card sales is withheld until the agreed-upon amount has been repaid in full.
Let’s say you need $50,000 to purchase a new oven for your restaurant, which you expect to increase sales. You apply and get approved for an MCA of $50,000. Fees are determined by a factor rate, so multiply your advance by the factor rate, and you’ll have your repayment amount and total fees:
|TOTAL FEES:||TOTAL REPAYMENT:|
A fixed percentage is automatically deducted from your credit and debit card sales until the entire $70,000 is collected. The average repayment period typically ranges from three to 12 months. The higher your credit card sales, the faster you’ll repay the MCA.
In this case, let’s say you agree to deduct 10% of your monthly credit card sales until the total amount is repaid ($70,000), and your business averages $100,000 in credit card revenue per month. You’d repay $10,000 monthly, and at this pace, the advance would be repaid by the seventh month. But if your sales drop to $70,000 in revenue per month, the MCA wouldn’t be repaid in full until the 10th month.
Growing your small business on your own can be very difficult without access to additional business funding. One of the most common ways to raise working capital for your business is through a business loan. Our small business loans were designed specifically to address the challenges that newly-established or credit-challenged businesses can face in obtaining funding. Whether you need a one-time infusion of capital or have an ongoing need, we offer small business loans based on the current cash flow of your business – not years of financial history – enabling you to access from $10,000 to $2,000,000 in just a few days. Once funded, you can pay back your loan through a small, fixed daily or weekly payment from business bank account.
- The Premier Loan is ideal for established business owners with favorable credit and a stable average bank balance.
- In business 2 years or more
- Favorable personal credit
- Extended terms available
- Just getting your business started, or have a few dings on your credit? As long as you maintain a steady bank balance our Advantage Loan would be a good fit.
- In business 9 months or more
- Wide range of credit types accepted
- $1,500 average monthly bank balance
How the small business loan program can benefit you:
- Quick and Simple With our quick and simple application process, you can expect approval for a Small Business Loan in 24 hours, and funds deposited into your account in just a few days.
- High Approval Rate Our approval rates rank higher than banks!
- Affordable Repayment Plans We offer an affordable repayment option that fits your unique business situation.
- Qualify for Additional Capital Once funded through one of our programs, you may qualify for additional capital.