We can provide your business with a merchant cash advance against its merchant account of up to $200,000 per business location. An alternative to a small business loan, these funds against all future credit card sales (Visa, MasterCard, American Express, Discover, etc.) are typically available within 7 days or less.
Use the money how ever you see fit: inventory, expansion, advertising and more.
- No Application Fee
- No Closing Costs
- No Fixed Payments
- No Equity Loss
- Easy Payback
Get on track today to provide your business the cash it needs to grow and operate.
How Does a Merchant Cash Advance Work?
Merchant cash advances provide funds to small business owners in exchange for a percentage of the business’s income (usually credit card transactions) over time. Payments are generally made daily (and automatically) using a percentage of the business’s daily credit card income. The total amount to be repaid is calculated by a “factor rate,” which is a multiplier generally based on a business’s financial status.
For example, John owns a seafood restaurant business in New York and has a big event coming up in a week that can make or break his business. Due to a recent storm, John’s normal seafood supplier was unable to fulfill John’s last order. John is desperate and finds another seafood supplier, who can fulfill his order for three times the normal price.
John’s business accounts do not have enough money to pay for the price increase and he does not qualify for another small business loan. He decides to obtain a merchant cash advance for $100,000 with a factor fee of 1.25%. The terms of the merchant cash advance are that John will repay the loan with 10% of his daily credit card sales for up to 12 months.
John would end up paying a total of $125,000 ($100,000 principal x 1.25 factor rate) at the end of 12 months. John would need to pay on average slightly less than $350 a day ($125,000 ÷ 365 days). This would be equal to 10% of his daily credit card income, meaning John should average around $3,500 per day in credit card sales. John could potentially pay off the advance sooner if his daily credit card income is higher than usual, but he would still have to pay the full amount of $125,000.
How to Qualify for a Merchant Cash Advance
The good news is that qualifying for a merchant cash advance is relatively easy. Most providers offer an easy online application with quick turnaround times. Unlike traditional business loans, applicants do not necessarily need to have multiple years operating as a business to qualify. While a lengthy operating history and good credit can help applicants obtain favorable payment terms, a short operating history and poor to average credit won't necessarily preclude applicants. One factor that providers look at closely is whether the business has had a consistently high sales volume. While there is no magic figure, most providers will only advance 75%-250% of a business’s monthly sales volume.
Small business owners seeking to apply should be prepared to submit official photo identification, business tax returns, bank account statements, credit card processing statements and credit check authorization.
Types of Financing
- Accounts Receivable Financing
- Bridge and Hard Money Loans
- Commercial Real-Estate Financing
- Equipment Leasing
- Franchise Financing
- Health Care and Medical Financing
- Merchant Cash Advance
- Mergers and Business Acquisitions
- Project Financing
- Purchase Order and Trade Finance
- Structured Settlement & Annuity Financing
- Unsecured Business Lines of Credit