A Merchant Cash Advance is based off your revenue.  You will enter into a transaction whereby you sell the rights to a percentage of your future revenue in exchange for a specific dollar amount, known as the Purchase Price, or the price the funder is paying you to acquire that percentage of your future receivables. 

That is not right.  It may seem like a loan, because you a receiving money now and you must make payments over a certain amount of time, but it is not actually a loan.  It is a purchase of future receivables, or a transaction between two parties

We never do a hard inquiry on your credit.  A soft inquiry does not impact your credit score in any way. 

Absolutely.  Even if your credit score is below 500 you can still be approved.  You may need to start with a smaller amount to build up your credit worthiness, but you will have an opportunity to get funding.

If you do not have a business, we will not be able to help you. We do not do any type of personal financing.  

You must have a business that has been open for at least 6 months and you must have average monthly revenue of at least $10,000. 

4 hours.  Theoretically, it can take 4 hours from the time we receive an application and business bank statements until the time you can see funds in your account.  

It really depends on how motivated you are.  For anything below $100,000, if you are standing by to provide any additional documentation as needed, it really can happen within a matter of hours.   But typically, your application will be reviewed within an hour of when you submit it, we will then reach out to you within a few hours to get any additional info that is needed, and then we can present options within 4-6 hours.  Most of the time, our clients that need funds quickly will be funded the following day after providing their application and bank statements.

How much do you need?  The average Merchant Cash Advance is $75,000 but it is possible to receive up to $2,000,000 within 2 business days.  For same-day funding, the maximum funding amount is usually $500,000.

This depends entirely on what kind of product.  But generally, a traditional financing product will take between 4-6 weeks from start to finish.

Absolutely not.  We have numerous agents that work in different areas of finance.  If you qualify for a traditional loan product, that is exactly what we will present you with.  But most of our clients do not qualify for more traditional loan products; that is why they come to us.  Our primary objective is to help each of our clients secure the best possible financing for their business to grow quickly and efficiently. 

It depends on your revenue.  A good rule of thumb is that you may be eligible to receive approx. 100% of your average monthly revenue. So if you are depositing $100,000 into your account on average per month, you may be able to qualify for an advance up to $100,000.   However if you only deposit $20,000 per month, you are probably not going to be able to qualify for $100,000.

This depends on several factors.  Your personal credit score, industry, time-in-business, and cash flow are all things that contribute to determining how long of a term you might qualify for.

Of course it matters.  Just because you can still get approved with a low credit score does not mean that it isn’t better to have a higher credit score.

Again, this depends on several factors.  But whether you have an excellent credit score or have a lower credit score, anyone can work their way up to getting access to the very best rates and terms available, and we will do everything within our power to help you get there.

For Merchant Cash Advances, the longest term will be 48 months, with monthly payments. The rate can be as low as 12% annually. 

So go to the bank then, and get money from them.  We provide many services to our clients, but we do not work with banks, and therefore we cannot offer bank rates.  People often say they want bank rates and we encourage them to walk into their local bank and explore their options. 

Just be prepared to wait 3-6 months, make sure you bring the last 3 years of your business and personal tax returns, all of your financial statements for the last 2 years and the current year-to-date, and then be prepared to have the bank put a lien on every single thing you own.

Probably not.  12% is the very best you could hope for, and that is if you have perfect credit, very strong cash-flow, have been in business for more than 5 years, and are in a preferred industry.  But 99% of clients do not get 12%

A Merchant Cash Advance is unsecured financing.  That means that the lending company is not taking any collateral.  TThat is why the rates tend to be higher.  

The Bank can afford to give rates of 4-7% because they put a lien on everything you own, so if you default, they will take your house, your car, and any other assets you have. 

Other traditional financing companies will offer rates in the low teens because they are either using your inventory, Accounts Receivables, or Equipment as collateral, so if you default, they will come and take the collateral in order to retrieve their investment. 

Merchant Cash Advance companies do not have any collateral to come and take.  They are extending capital based on your cash-flow and the expected performance of your business in the future.

Sure, you absolutely should have a business credit card. Get two of them in fact.  And make sure you get ones that have good sign-up bonuses and reward purchases with miles or cash-back.  Every business owner should have a credit card to use for purchases.

But it almost certainly will not be cheaper.  Credit cards have compounding interest rates.  That means that if you don’t pay your balance in full each month, you will have additional interest added to your outstanding balance each month.  If you have a credit card with an APR of 29.99% (which many credit cards will have after the initial introductory period expires), then for every $10,000 in outstanding balances you have on your credit card each month, you will have additional interest added to your balance of approx. $800 per month. 

According to industry statistics, only 13% of Americans pay their credit cards in full each month.  If you are one of the few who do pay your credit card balance in full each month, then perhaps you don’t need a Merchant Cash Advance.  But there are only so many things you can purchase with a credit card.  But if you need to buy inventory, or pay payroll, or pay your vendors, you cannot do these things with a credit card. You need cash.  And getting a cash advance from a credit card has even higher interest rates and extra fees.

If you are like the rest of us, and you don’t pay your credit card balance in full each month, then you will absolutely pay more in the long run using a credit card than by getting a Merchant Cash Advance. 

Merchant Cash Advances use Factor Rates, not interest rates.  Factor Rates do not compound.  So if you receive a $10,000 advance at a Factor Rate of 1.40, you will have sold future receivables in the amount of $14,000.  That is the maximum you will pay over time, and it will be repaid as a percentage of your revenue.  With a credit card, you will likely pay twice as much in the long run.

That’s fair. Merchant Cash Advances are not for everyone.  Although most of the time the rate will be lower than that.  But keep in mind, providers of Merchant Cash Advances are taking calculated risks to invest unsecured capital into various businesses.  Some business owners have good credit, and stable cash-flow and will obtain a competitive rate.  But there are many other business owners that have poor credit, poor cash-flow, already have multiple balances with other Merchant Cash Advance providers, and would be considered much riskier investments.  Many of these businesses don’t succeed.  When the businesses fail, often times the providers of the funding are unable to retrieve their investment.  So the riskier the situation is, the more likely that the rate will tend to be on the higher side. 

Well again, it’s not a loan.  But here’s how it can make sense.  The question is not how much you will have to pay.  The question is how much can you increase your revenue by having access to these funds?

For example, let’s say you have a restaurant, and you want to remodel in order to create more space for tables.  You currently have 20 tables and your monthly revenue for sit-down dining is $40,000.  If you could remodel, you could have space for 24 tables. 

So each table currently earns you $2,000 per month.  If you could add 4 tables, you would have additional revenue of $8,000 per month.  Now let’s say the cost of the remodeling was $20,000.  Unfortunately, you are unable to go to the bank, you don’t have any assets to use as collateral, and you already have an existing balance with another unsecured funder.   So you decide to take a $20,000 advance at a Factor Rate of 1.40

You are selling the rights to $28,000 in future receivables which will be repaid over the next 6-12 months. So essentially, it is costing you $8,000 to be able to have a permanent increase in monthly revenue of $8,000.  So in the first year alone after the remodeling is completed, you will have extra revenue of $88,000.    Was it worth it?

Obviously, every business is different, and every situation is different.  But businesses need money to grow.   Not every business owner can go on Shark Tank and get investors, or to walk into a bank and get a loan.   Sometimes you must make tough decisions and spend money to make money.