Merchant Cash Advance
What You Need To Know
1. A merchant cash advance is not a loan. It is an advance payment made to the merchant of a percentage of future credit card sales, which the merchant contractually assigns to the cash advance company as repayment. There are some fees involved but there is no "interest rate" or other charges associated with a loan.
2. This type of funding source is much easier to qualify for than a loan, especially given the difficult economic times we are now in. Many banks have ceased small business lending almost unilaterally, and for those loans they do approve they will require extensive time in business and rock-solid personal and business credit. A cash advance is based solely on your transaction history over the past year, and you do not need to be in business longer than one year to qualify.
3. The funds are deposited into your business checking account, generally within 10 days of applying for the advance. You may use the funds for any business purpose-expansion, advertising, payroll, etc.
4. Depending upon whom you obtain your advance from, you will often be required to utilize a merchant services provider that works with the advance company, in order for them to debit out their monthly repayment sum from your monthly credit card sales settlement payments.
5. Terms for repayment are usually 12 months or less. If you need additional funds you can apply for them.
6. Cash is available in amounts from, generally, $5,000 up to $500,000.
For additional information, or to apply,
Contact Me.