We offer cash advances to companies all over the USA — regardless of the business, or niche. We’re your partner, not only a lender. We can help you get the financing you need when you’re in distress, and needing fast funding to make deadlines and payroll. When you get a merchant cash advance, it’s not the exact same thing for a loan. It is basically a cash advance based on the credit card sales that you get in your business merchant account. Once 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 ask a loan, it takes just 24 to 48 hours for it to be approved and in your account.
This type of loan works well for folks who have poor credit or need fast access to funds. The entire approval process is quick and works for many kinds of businesses. The only drawbacks are the higher fees and the fact that the loan has to be paid back through your daily earnings.
With a merchant cash advance, you get the money you need when you need it. The funds can be used for anything your company needs. Some businesses use this type of cash advance to make up earnings during a slow month. Other businesses just have to cover a bill that’s past due.
This is a cash advance and not a loan. When you get a cash advance, you promise to pay it back using your company’s future income. The loan is given in a lump sum that is paid back from the money you make every day. The amount that you pay back is referred to as the retrieval 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 previous two to six months to find out how much you can borrow. Based on the supplier, you can get anywhere from 50 to 250 percent of your monthly credit card transactions as an advance. Then, you’ve got 90 days to 24 months to pay it back.
The Benefits of Getting an Merchant Cash Advance
This option is perfect if you need cash right 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 couple hours. Then, you get the advance within just a couple of days. If you’re trying to pay your payroll or a sudden expense, obtaining a speedy option is a benefit.
Another benefit is that you can avoid using security to get an advance. Banks normally require collateral for a business loan, which requires time. Additionally it is a massive risk for your company if you cannot repay the loan. With a merchant cash advance, you get the money you need without having to provide your assets as collateral.
On top of that, the application process is simple and straightforward. You can do the entire application online. You only need to upload some of your files and fill in the blanks. Unlike a typical lender, most merchant cash advance lenders are fairly open to bad or poor credit. Their main goal 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 have high limits and flexible payments. You pay a percentage 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 percentage of your credit card sales. Plus, some lenders will give around $2 million in a merchant cash advance.
This option works well for companies who need money quickly. You want to have an established history of credit card transactions. The only drawback is the cost. If you need cash fast and want a convenient alternative, then a merchant cash advance may be worth the added price.