WHAT IS A MERCHANT CASH ADVANCE?
A merchant cash advance is an advance on future credit or debit card sales. The lender often forms a partnership with credit card companies and collects a percentage of each sale. Payments are a percentage of each sale so repayment is not a burden when business is slow.
JUMP TO:
Speed
As Little As 24 Hours
Factor Rate
1.14 - 1.45
Loan Terms
Until Advance Amount Is Paid
Loan Amount
2,500 - 1,000,000
Pros & Cons
-
Quick access to funds
-
Easy approval process
-
Wide range of business purposes
-
Bad credit is acceptable
-
Higher fees than traditional loans
-
Less flexibility
-
Payments reduce daily cash flow
Who Qualifies?
Would your business be eligible for a merchant cash advance?
If you have little or no collateral, limited business history or a low credit rating, merchant cash advances could be a solution to your financing problems.
Merchant cash advance providers tend to have easy eligibility standards, so most small businesses shouldn’t have a problem qualifying.
Plus...
For businesses that make a big portion of their revenue through credit card payments—if you own a restaurant or a retail store, for example—then you can use a merchant cash advance as a short-term financing tool.
It can help with working capital, inventory purchases, debt payments, unexpected payments, and more.
CREDIT SCORE
400
Most Businesses Who Qualified Had:
ANNUAL REVENUE
$100,000
TIME IN BUSINESS
5 Months Minimum
-
Drivers License
-
Voided Business Check
-
Bank Statements
-
Balance Sheet
-
Profit and Loss Statements
-
Business Tax Return
-
Personal Tax Return
-
Business Plan
-
Business Debt Schedule
Applying Does Not Affect Your Credit!
Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.
Merchant cash advance is a quick, easy way to get a business cash advance with no need for collateral—even if you don’t have a great credit score. A quicker alternative to more traditional funding methods. This can allow merchants to sidestep the lengthy approval process of other loan types and borrow cash against future sales. In fact, an MCA isn’t technically a loan, but rather, as the name suggests, a cash advance.