We offer cash advances to companies all over the USA — irrespective of the business, or niche. We are your partner, not just a lender. We can help you get the funding you need when you’re in distress, and in need of fast funding to create deadlines and payroll. When you receive a merchant cash advance, it’s not the same thing as a loan. It is basically a cash advance based on the credit card sales that you get in your business merchant account. As soon as you apply for the loan, we deposit the funds in your business checking account within 24 hours.
How Merchant Cash Advances Work
The cash advance is for $2,500 to $25,000. Each merchant cash advance has a repayment program with daily payments from your account. The moment you request a loan, it takes only 24 to 48 hours for this to be approved and in your account.
This sort of loan works well for folks that have poor credit or need fast access to funds. The whole approval process is quick and works for many kinds of businesses. The only drawbacks are the higher fees and how the loan must be paid back through your daily sales.
Having a merchant cash advance, you get the cash you need when you need it. The funds may be used for anything your company needs. Some businesses use this type of cash advance to make up revenue during a slow month. Other businesses simply have to cover a bill that is past due.
This is a cash advance rather than a loan. When you get a cash advance, you promise to pay it back using your company’s future earnings. The loan is provided in a lump sum that is repaid from the money you make every day. The amount that you pay back is known as the recovery rate or holdback. Based on the amount of the advance, your repayment period and your credit card sales, the holdback can vary between 5 to 20 percent.
The amount that you can borrow depends on your credit card sales. Most suppliers will review your sales for the last two to six months to see how much you can borrow. Depending on the supplier, you can get anywhere from 50 to 250 percent of your monthly credit card transactions as an advance. Then, you have 90 days to 24 months to pay it back.
The Benefits of Getting an Merchant Cash Advance
This option is ideal if you need cash straight away. You can get approved much faster with an advance than you can with a traditional loan. Often, you can get approved within just a few hours. Then, you get the advance within just one or two days. If you are trying to pay your payroll or a sudden expense, obtaining a speedy option is a benefit.
Another advantage is that you can avoid using security to get an advance. Banks normally require collateral for a business loan, which takes time. Additionally it is a massive risk for your company if you cannot repay the loan. With a merchant cash advance, you get the cash you need without having to provide your assets as collateral.
Best of all, the application process is simple and straightforward. You can do the entire application online. You just have to upload a few of your documents and fill in the blanks. Unlike a typical bank, most merchant cash advance lenders are fairly open to poor or bad credit. Their primary aim is to find borrowers who have a strong history of credit card sales. They will also look at how long you have been in business.
Merchant cash advances also have high limits and flexible payments. You pay a portion of your credit card sales as your company sells products. If you sell less, then the amount that is taken out is correspondingly less. You only pay out a portion of your credit card sales. Plus, some lenders will give around $2 million at a merchant cash advance.
This option works well for companies who need cash quickly. You want to have an established history of credit card transactions. The only drawback is the price tag. If you need cash quickly and want a handy option, then a merchant cash advance may be worth the additional price.