What is a merchant cash advance?
A merchant cash advance gives a business quick access to working capital in order to meet business needs based on future credit card receivables. Merchant cash advances come in various forms and often have shorter durations and smaller remittance amounts than business term loans, making them ideal for small business owners who need flexible options to satisfy their funding, while maintaining strength in cash flow.
Which business is ideal for this type of small business financing?
Businesses who accept credit card payments and are in need of quick capital are ideal candidates. Remember, aside from being simple and have a much easier application process, a merchant cash advance provides flexibility with variable payments based on business receivables. If your business has high credit card sales, revenue receivables, or is seasonal, then a merchant cash advance might be ideal for you.
Applying is quick and simple and remittances are automatically debited from your account at a fixed rate each month, giving you the peace of mind that your remittances will stay consistent.
Because your monthly revenue may go up and down, we give you the option to request an adjustment to your remittances to better fit your revenue of that month.
Automatic remittances are based on a factor rate and are gradually debited as a percentage of future credit card and debit card sales. Remittances are automatically deducted from the business bank account where funds were deposited.
**Daily or weekly payments are available.
Loan amount from $5,000 -$500,000
How To Apply
Same Day Approval
To get prequalified, follow the "Apply Now" button and submit some basic business information.
After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.
Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.
550+ credit score
12+ months in business
$10,000+ average monthly bank deposits
Signed one page funding application
3-5 most recent months company bank statements
Full credit report
Business tax returns (not all cases)
Merchant Cash Advance: Advantages and Disadvantages
While MCAs are a great financing option for short-term funding and seasonal businesses, other funding structures may be better-suited for certain objectives.
With flexibility on what you can use the funds for, a cash advance is a great short-to-mid-term solution for many business cases.
Remittances will always be the same each month so that there are no unforeseen expenses based upon the fluctuation of your revenue.
Because MCAs look forward and not backward, they are typically easier to qualify for even if you do not have strong business credit.
If you would like to request that the remittances are in accordance with the revenue fluctuations that will have to be adjusted after the month has ended.
MCAs are shorter in duration which means they may not be as effective for financing long term growth objectives.
Business cash advances can be more expensive than other alternative funding structures.