If your business accepts credit cards, getting cash for your business can be fast and simple. You could receive up to $150,000 per location in less than 10 business days—sometimes in as few as 72 hours.
A National Transaction Merchant Cash Advance eliminates many hassles and delays common with bank loans. A Merchant Cash Advance builds on the strength of your business’ future credit and debit card sales, so a damaged personal credit history is not an immediate disqualifier. Explore a flexible, responsive alternative to business loans. Our Merchant Cash Advance gives you options.
What It Is.
A Merchant Cash Advance is a funding product providing working capital to businesses. Merchants sell a specific amount of their business’ future credit and debit card receivables at a discount in exchange for capital they can use for any business need.
Once approved, a lump sum of cash is deposited directly into the business’ checking account. The collection process is automatically handled by the business’ credit card processor. As each day’s credit and debit card transactions are settled (or “batched”), a specific percentage is forwarded to Merchant Cash Advance and applied to the remaining balance of purchased receivables.
Because a set percentage of credit and debit card sales are forwarded, the business’ daily card-sales volume determines the amount of each remittance. Unlike in the case of a business loan, there’s no fixed term, no set dollar amount to pay each month, and no possibility of missed or late payments and associated penalties.
Our Merchant Cash Advance is a proven, trusted way for you to get quick money for your business needs. You decide how to spend the money, whether it is for renovation, marketing/advertising, taxes, payroll, handling the costs of emergencies, or growth strategies.
There is low documentation, and no personal collateral is required. There are no application fees and no hidden charges. Because it aligns so well with the way they operate, 3 out of 4 qualified Merchant Cash Advance customers will return for multiple Merchant Cash Advances to help stabilize and grow their businesses.
How It Works.
From start to finish, the entire process of a Merchant Cash Advance is just 4 easy steps:
1. Applying. You submit a quick application form. A customer service representative contacts you directly to complete the qualification process. Verification includes a number of simple facts about your business and its operations.
2. Transacting. Upon qualification, you will agree to sell a specified amount of your business’ future card sales. In exchange, you will receive a lump sum of working capital into your business’ checking account. You decide how to spend the money on your business.
3. Forwarding. As each day’s card sales are settled, a specific percentage is automatically retrieved by the business’ credit card processor and forwarded to Merchant Cash Advance. This percentage is fixed, so each dollar amount retrieved reflects a fixed percentage of your daily credit and debit card sales volume (see image below for forwarding detail).
4. Completing. Retrieval stops automatically when the total amount of card sales your business sold has been forwarded—usually in less than 12 months (depending on card sales volume).
Merchant Cash Advance FAQs.
How does my business qualify for funding?
Ideally, you will have owned and operated your business at the same location for 12 months or more. Your business needs to provide from 4 to 12 months of processing statements. Certain types of businesses, including adult entertainment and sexually oriented businesses, are ineligible. We make sure you have no outstanding bankruptcies or large tax liens, and we do not currently provide funding to businesses that are 100% Internet-based (no physical location).
How do you decide how much I can get?
The amount of funding available to your business is determined primarily by its monthly sales volume. Typically, an eligible customer qualifies for a Merchant Cash Advance that is around the same amount as its monthly credit and debit card sales. As an example, if your business processes an average of $20,000 in credit/debit transactions every month, the amount of funding available is typically about $20,000.
How soon can I get the money?
This depends on you. If you complete all the paperwork promptly, we can usually offer funding in less than 10 business days. Once your business is an established customer, you can receive additional funding in as little as 72 hours.
What can I use the money for?
You decide how to spend the money—whatever is best for your business. Previous customers have used this money for renovations/remodeling, marketing and advertising plans, paying taxes, buying additional inventory, handling payroll, expansion and other business needs as they arise.
Will my poor personal credit history keep my business from getting funded?
Not necessarily. Since this funding builds on the strength of your business’ card sales, your own personal credit history carries much less weight than it does in business loan decisions. Your business can qualify for a Merchant Cash Advance even if you have been rejected for bank loans or other financing.
Do you take 100% of my credit and debit card sales?
No. Your processor forwards only the predetermined percentage of your business’ credit and debit card sales, and this percentage does not change.
How often does forwarding/retrieval occur?
Your processor automatically forwards a predetermined percentage of daily credit and debit card sales as they are settled. Your processor will continue to forward this percentage automatically as each credit/debit batch is settled until Merchant Cash Advance retrieves the total amount of credit and debit card receivables that your business sold.
What is the interest rate?
This is not a loan, so there is no principal and no interest rate. A Merchant Cash Advance involves a sale of your business’ future credit and debit card receivables at a discount.
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