Merchant Cash Advance

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 6-24 months.

In order to qualify you will need:

• 4+ months in business
• 500+ credit score
• $15,000 + in monthly revenue

What Documentation Will Be Required to Apply?

• 4 months of recent business bank statements
• Completed Application

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 4-24 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.

SBA products typically have a longer turnaround time for funding, so if you would like to go this route, please be conscious of your deadline in which you need the funding. SBA offers competitive rates and terms, and you can virtually use the funds for any purpose. However the paperwork is lengthy, credit needs to be 680 plus and this type of financing may require collateral.

You will need the following documents to apply for this type of financing:

• Business and personal returns
• Financials (P&L, balance sheet, income statement)
• Business plan and debt schedule
• Photo identification and void check

What you will need to Qualify

• 1+ year in business
• 650+ credit score
• $15,000 + in monthly revenue

If you think that this type of financing might be for you, go ahead and click on the apply now link and start the process. Complete the application form and submit initial bank statement documents. If you are a candidate for this type of financing, you will be advised shortly after submitting your information.