Often times business owners find themselves in a position where they need working capital quickly. In most cases it's because you ran into an opportunity that requires immediate action, and the three month process of getting a bank loan just isn't fast enough to capitalize on the opportunity in front of you. This is when a Merchant Cash Advance can be a valuable asset for the growth and expansion of your company. There is also a time when a Merchant / Business Cash Advance is not the right choice for your business. If you find yourself in a time when cash flow is down, and you're struggling just to keep up with the expenses, this is not the time to get a Merchant / Business Cash Advance, unless you can use it to generate income very quickly. In most cases this will be a daily payment that starts the next day after funding, weekly payments are available to well qualified business owners.
A Merchant / Business Cash Advance is not a loan, it is an advance that is given based on your future receivables. With a Merchant Cash Advance you receive a lump sum of money upfront and then repayment starts the next day using a percentage of your credit card sales. A Business Cash Advance works the same but is for businesses that do not have credit card sales, it is an advance given on future receivables only. That percentage is called "hold-back" and can be anywhere from 5% to 20% of your daily credit card sales. The percentage is determined upfront and remains the same for the term of the advance. If your contract retrieval rate was 10% for example, then 10% of your daily credit card sales would be taken out and applied to your balance. The benefit of this verses a traditional monthly payment bank loan is that on days when business is slow, less is taken, and on days when business is booming, the advance is being paid back at an accelerated rate, getting your business out of debt faster.
*Straightforward simple application process
*Funding in 3-5 business days
*Minimum 450 FICO to qualify
*No Collateral Required
*Minimum $5000 per month revenue to qualify
*Up to 1 Million available
*One Page Application (sent via DocuSign)
*Last 3 Months Business Bank Statements
*Void Business Check-Merchant / Business Cash Advances are better suited for businesses that need working capital quickly, but also have strong credit card sales and high monthly revenue, or for newer businesses that have high credit card sales, but haven't established a solid credit history yet. Also, if your company has been turned down for a traditional bank loan, a Merchant / Business Cash Advance can fill the working capital need until you can qualify for a more traditional type bank loan.
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