How Our Merchant Funding Programs Work
What We Do
The nuts and bolts of what we do is very simple. We provide small and medium-sized businesses with Merchant Cash Advances.
These are cash advances given to business owners who need cash to cover costs for operating expenses, repairs, personnel, expansion and other normal business expenditures.
How We Do It
In simple terms, we advance business owners the cash they need and it is paid back with a percentage of sales from future credit card transactions.
If your business does not accept credit cards or does little sales in credit cards, we can still provide you with cash advances through our Microloan (ACH Only) program.
Why Choose A Merchant Cash Advance?
Merchant cash advances provide many advantages over traditional bank loans for small and medium-sized businesses. As Merchant Cash Advances are not a loan and the funds do not originate from a bank, the approval rate is higher and the application-to-cash process is much quicker and less stringent. A business owner’s approval for an Merchant Cash Advance is also much more likely to be based upon actual, real-world business performance and not credit, as is the case with most bank loans.
In addition, Merchant Cash Advances do not require a fixed monthly payment as per a bank loan; business owners pay back the advance with a percentage of their credit card transactions, which will vary monthly. This approach does not handcuff the business owner in a slow business month, and is designed to support the natural flow of a business.
Naturally, in the current economic climate, this approach to funding has become an increasingly popular option for small and medium-sized businesses. The following chart contains a comprehensive overview of a merchant cash advance over a traditional bank loan.
|Merchant Cash Advance||Traditional Bank Loan|
|Approval Rate||High, over 90% of business owners are approved for an MCA||Very low, typically 45-50% of business owners are approved for a bank loan|
|Approval Time||Approvals in 48 hours||Approvals in 48 hours|
|Application Fees||No applications fees||Costly application fees|
|Credit Score||High credit score is not required||High credit score is required|
|Collateral||Personal guarantee on all owners||No collateral|
|Closing costs||No closing costs||High closing costs|
|Application Paperwork||Simple, 1 page application||Very burdensome. Applications are often very complex and time consuming|
|Fixed Monthly Payments||No||Yes|
We maintain flexible qualification terms for a merchant cash advance, however we recommend that your business:
- Processes a minimum of $4,000 per month in credit card sales
- Does a minimum of 10 credit card transactions per month
- Has been owned and operated for a minimum of 6 months
To find out the qualifications for our different merchant funding programs, please visit our Funding Solutions page.
What Are The Payment Options?
The advance is paid back from a holdback percentage of the businesses credit card transactions. This percentage may be repaid using a variety of repayment options, including Lock box bank accounts, ACH & more.
How Fast Can We Fund?
We will approve you in 24 hours, and we can fund within 5 business days.