What is a Merchant Credit Advance?
A merchant cash advance is a convenient and swift way to get your business the working capital it needs. By purchasing a future portion of your credit card sales, a merchant cash advance provider will provide your business with an upfront, lump sum of cash.
The process is designed to get you the funds your business needs with ease and speed in mind; a merchant cash advance is typically repaid in less than 18 months. With an agreed upon small percentage that works with the flow of your business, payback is just as simple.
Why Choose a Merchant Credit Advance?
Qualifying for a business loan in today’s economy has become very challenging and if you do not have excellent credit – virtually impossible. The banks are not lending money to each other let alone to small businesses. Other traditional sources of capital such as home equity loans and credit card loans are no longer options for many business owners. Therefore, a merchant cash advance is a smart alternative to traditional financing or business loans.
However, even before the credit crisis and the current economic outlook, many business owners preferred merchant cash advances instead of conventional loans for a variety of reasons including but not limited to the following:
- FAST: Approvals take 24 – 48 hours and accounts are typically funded in approximately 7 days.
- HIGH APPROVAL RATE: No need to have great credit, no need to show profit and no need to have a low debt to income ratio.
- NO PERSONAL GUARANTEES: Our merchant cash advances do not require a personal guarantee; however individuals may be liable in cases of fraud, misrepresentation, and as further detailed in the contract.
- UNSECURED: No collateral is required.
- CASH FLOW FRIENDLY PAYBACK: No fixed monthly payment, if you have a slow month, your repayment for that month is proportionally decreased.
- NO RESTRICTIONS ON USE OF FUNDING: Use the funds for advertising, renovations, expansion, working capital or whatever else you might need.