What Is a Merchant Cash Advance
A Merchant Cash Advance is not a loan. It is a purchase of a a business’s future credit and debit card receivables. A Merchant Cash Advance purchases a specified dollar amount of your business’s future debit and credit card sales at a discount. Your business, instead of paying one large fixed monthly payment until a set maturity date like a loan, remits a fixed percentage of its daily debit and credit card revenue automatically until the specified amount of purchased receivables is remitted in full.
Why a Merchant Cash Advance?
Businesses receive cash today for the sales that they will make tomorrow!
Cash Advances are designed for businesses that do over $5,000 per month in credit card sales, such as restaurants, retailers, hotels, salons and certain service providers. Financing is based on measurable credit card sales and most applicants do not need to provide financial statements. This is also a good alternative for those with challenges to their credit score. Merchant Cash Advances are available from $5,000 to $1,000,000.
Advantages of a Merchant Cash Advance
- You don’t need a stellar credit history to qualify.
- Cash-flow friendly! Your business remits less on slow days and more on busy days to keep cash-flows smooth.
- You don’t have to worry about fixed monthly payments during tough times, and there is no set maturity date. This enables your business to be more flexible financially while fully funding all of its operations.
- The remittances are automatic and don’t require you to write any checks.
- Getting a Merchant Cash Advance is faster and easier than obtaining a traditional loan, making your much needed capital more accessible when you need it quickly.