Merchant Cash AdvanceBack to Our Services
A merchant cash advance is a lump sum of capital that you repay by using a small percentage of your daily credit card or checking account transactions. It is not considered a loan because you are selling your future receivables at a discount over a term of 6-18 months.
In order to qualify you will need:
- 4+ months in business
- 500+ credit score
- $120,000 + in annual revenue
What Documentation Will Be Required to Apply?
- 4 months of recent business bank statements
- Completed Application
- Credit Score
- Credit Card Processing Statements (Required if you process Credit Cards)
- Voided Check
- Drivers License
How Much Will This Cost?
A merchant cash advance is based off what is called a factor rate. Ranging from 1.15 to 1.35. You would calculate the total cost by multiplying the amount you are borrowing by the factor rate. For example, a cash advance of $10,000 x 1.20 = $12,000.
How Long Will It Take to Pay off a Merchant Cash Advance?
A merchant cash advance term length is normally between 4-18 months with payback on a daily, weekly or monthly schedule. They are shorter in length because of the speed to funding and lack of collateral requirements.
A merchant cash advance is a fantastic way to get quick and efficient financing in as little as 24 hours. No collateral will be required and there is no restriction on use of funds. They do cost more than typical term loan products but have their benefits which are getting access to capital quickly with little documentation, lack of collateral requirements and no restriction on use of funds.