Merchant Cash Advance

A quick, one-time capital infusion into your business.

The merchant cash advance (“MCA”) is a form of cash flow funding that is a lump sum capital infusion in exchange for a fixed payback amount. The payments back to the funder come in the form of a fixed dollar or percentage amount, take daily or weekly directly from your bank account. This form of short-term financing relies on a business’ cash flow as a basis for funding. With cash flow funding, collateral is not required, which makes it more suitable for companies with few assets.

Product Highlights

Fast, flexible, non-dilutive business funding.

Same day funding available

Typical turn around time for a merchant cash advance is 2-3 business days, however often times for deals under $100,000 can fund in the same day.

Personal FICO not an issue

Bad FICO? No problem. The minimum FICO requirement is 500. Though the pricing may not be the best, if you have a low FICO, securing a merchant cash advance is a good way to re-establish and improve your personal credit.

Unsecured by assets

The best part about a merchant cash advance is that you don’t need any assets to secure funding. The funding is secured by future cash flow, so if you don’t have any assets, but solid cash flow, you still qualify.

Cheaper than equity

When assessing your options for funding, equity is the most expensive. Unlike equity, which requires you share a percentage of profits (and losses) with your investor for life, payback on a merchant cash advance is a fixed royalty for a fixed period of time.

Bridge to Busy Season

The merchant cash advance is perfect to prevent cash shortfalls as you wait for busy season to come. Many funders specifically look for seasonal businesses to deploy funds to, knowing full well higher revenue levels are right around the corner.

Minimal Documentation

In order to obtain an offer, we need an application and four months of bank statements. To close, the funder will require minimal documentation like drivers license, proof of ownership, and a voided check.

When to Pursue a Cash Advance

It may depend on your business situation, or your personal situation.

Smoothing out cash flow

Businesses that experience predictable peaks and valleys are best positioned to take on short-term cash flow funding. A merchant cash advance can provide the capital to meet expenses during the slow period, while helping the business ramp up for the start of busy season.

Launching new projects

When a business launches a new project or takes on a new customer, it often requires extra capital. With the expectation that the project or customer will generate additional sales within a few months, a cash flow advance would be most appropriate.

Pursuing inventory discounts

When the opportunity arises to purchase highly desirable inventory at a steep discount, a business could profit by using a cash advance to finance it. This assumes the business can quickly sell the inventory to cover the cost of the funding.

Emergencies & Opportunities

A broken water pipe or a malfunctioning piece of equipment usually can’t wait. If sales and profits may decrease, a quick cash flow advance may be the only solution. It’s also a fit for an unexpected opportunity you want to capitalize on.

Poor FICO Score

Despite having a bad personal FICO score, you may still be able to get a merchant cash advance. Because the funding is primarily based on cash flow, the FICO score isn’t considered as heavily as it is with more traditional financing or small business loans.

Short Time in Business

If you’ve been in business for more than three months but less than a year, a merchant cash advance may be your only option. Again since it is cash flow based, you will be able to get approved for a starter deal provided you have sufficient cash flow to service an advance.

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