We offer cash advances to companies throughout the USA — irrespective of the business, or niche. We’re your partner, not just 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 is not the same thing as a loan. It’s basically a cash advance based on the credit card sales that you get in your company 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 accounts. As soon as you request a loan, it takes only 24 to 48 hours for this to be approved and in your account.
This type of loan works well for folks that have bad credit or need fast access to funds. The whole approval process is quick and works for many sorts of businesses. The only drawbacks are the higher fees and the fact that the loan has to be paid back through your daily earnings.
Having a merchant cash advance, you get the money 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 earnings during a slow month. Other businesses simply need 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 together with your company’s future earnings. The loan is provided in a lump sum that is paid back from the money you make each day. How much you pay back is referred to as the recovery rate or holdback. Depending 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 providers will review your earnings 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 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 couple hours. Then, you receive the advance within just a couple of days. If you are trying to cover your payroll or a sudden expense, obtaining a speedy option is a benefit.
Another advantage is that you can avoid using security to obtain an advance. Banks normally require collateral for a business loan, which takes time. It is also a huge risk for your company if you can’t pay back the loan. Having a merchant cash advance, you get the cash you need without having to provide your assets as collateral.
On top of that, the application process is easy and straightforward. You can do the entire application online. You just have to upload some of your files and fill in the blanks. Unlike a typical lender, most merchant cash advance lenders are quite open to poor or bad credit. Their main goal is to find borrowers that have a strong history of credit card sales. They will also look at how long you are 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’s taken out is correspondingly less. You only pay out a portion of your credit card sales. Plus, some lenders will give up to $2 million in a merchant cash advance.
This option works well for businesses who need cash quickly. You want to have an established history of credit card transactions. The only drawback is the cost. If you need cash quickly and want a convenient option, then a merchant cash advance may be worth the additional price.