As a business owner, you understand the never-ending challenges of running a successful operation. Opportunities for expansion, renovation, purchasing new equipment, or unplanned situations require additional working capital that you may not have today. We focus on providing small business loans to a wide range of industries, including but not limited to restaurants, retail stores, service providers, manufacturers and wholesalers. In just 24 to 48 hours and with minimal paperwork, you can get the financing you need for your business.
Merchant Cash Advance provide funds to businesses in exchange for a percentage of the businesses daily credit card income, directly from the processor that clears and settles the credit card payment. A company’s remittances are drawn from customers’ debit- and credit-card purchases on a daily basis until the obligation has been met. Most providers form partnerships with card-payment processors and take payments directly from a business owner’s card-swipe terminal. These Merchant Cash Advances are not loans – they are a sale of a portion of future credit and/or debit card sales. Most importantly, payments to the merchant cash advance company fluctuate directly with the merchant’s sales volumes, giving the merchant greater flexibility with which to manage their cash flow, particularly during a slow season. Advances are processed quicker than a typical loan, giving borrowers quicker access to capital. Also, because MCA providers typically give more weight to the underlying performance of a business than the owner’s personal credit scores, Merchant Cash Advances offer an alternative to businesses who may not qualify for a conventional loan. An example transaction is as follows: A business sells $25,000 of a portion of its future credit card sales for an immediate $20,000 lump sum payment from a finance company. The finance company then collects its portion (generally 5-13%) from every credit card and/or debit card sale until the entire $25,000 is collected.
It’s important to note that a Merchant Cash Advance is not a loan; it is a purchase and sale. Basically, it’s a “cash-flow friendly” way to access capital and works particularly well for business owners who are comfortable having the amount they remit fluctuate with daily sales. Instead of sending a large amount once a month, a flat percentage of your business’s credit and debit card sales are automatically remitted daily. A larger amount is sent on busy sales days than on slow days. The process stops automatically when your business delivers the total amount future credit card receipts that it’s sold.