Merchant Cash Advance
MERCHANT CASH ADVANCE OVERVIEW
| Estimated Business Loan Term | 2 to 12 Months | |
| Rates | 24% to 49%* | |
| Time in Business Required | 2 Months | |
| Min Credit Score Require | 500 | |
| Min Monthly Deposits Required | 5 | |
| Min Monthly Revenues | $8,000 | |
| Min Business Loan Amount | $8,000 | |
| Max Business Loan Amount | $250,000 | |
| Max Number of Negative Days | 4 Within a Month | |
| *rates depend on duration of funding | ||
What is a Merchant Cash Advance
A merchant cash advance, also known as a business cash advance, is basically an agreement by a borrower to sell a percentage of future sales receivables at a slight discount for an up-front bulk cash payment. Most lenders require that you accept credit cards and the agreed upon percentage is deducted automatically from each future sale. This can be very advantageous for borrowers because there isn’t a monthly bulk payment. If the business experiences a slow cycle then the amount being repaid on the advance at the time also decreases. This removes the stress involved with having to make payments during slow business cycles. Also, all the payments are completed electronically so there is very little effort required with the payback process as there is with standard invoices mailed or checks written.
Cash Advances Without Credit Card Processing
Being a leader in the business financing industry we also feature various business funding options for companies that do not process credit cards. The process is very similar to the above mentioned, however, instead of receiving the payments via the credit card processor we establish a program where a portion of the revenues are deposited. It is very convenient for business owners who receive the bulk of their revenues through different payment methods. We will continue to develop innovative funding solutions to ensure that our clients always have access to working capital.
Have a Merchant Cash Advance Already
Many of our clients come to us after having a merchant cash advance out with another company. Some reasons why they have come are: the rates or payments for their merchant cash advance were too high; the funding amount wasn’t enough or they required additional funding; there were just too many add-on fees and they didn’t want to overpay for their next advance; or they were just not happy with the level of service. Shield Funding can pay off your existing advance and get you into a better program that is less expensive, provides more funding, is not inundated with additional fees, and meets your expectations on every level. We are a trusted and respected leader in the financing industry and we offer very competitive rates without all the additional costs that many other firms charge. Give us a call or apply online for a free quote and see how we can make a difference for you with a high quality lending program.
A Bad Credit Funding Solution
Many clients come to us looking for an alternative to traditional business loans because they have poor credit or they just don’t meet the basic credit requirements from a bank. Our merchant cash advance loan through our bad credit business loan program is great for small business owners with little or no credit because it is based off of credit card revenue and not credit history. If you have been denied a business loan because of bad credit or you fail to meet traditional financing credit requirements our merchant cash advance program can be a great alternative.
What Do I Need to Qualify?
Below is a list of the general requirements needed to get approved for our merchant cash advance program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500+ Min. Credit Score
- $8,000 Min. Monthly Revenue
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
(888) 882-6117
or
Submit your online application by clicking apply below and entering a few basic details about your business.
What Will a Merchant Cash Advance Cost You?
The cost for a merchant cash advance depends on the factor rate and length of time you receive the advance. An example of a typical merchant cash advance package would be to receive $40,000 for 12 months at a factor rate of 1.25. That would make the additional cost above the advance amount $10,000, so your total pay back amount would be $50,000. Your payment amounts would be based on daily payments using a 5 day a week schedule. You can use the calculator below to give you an example of total cost scenarios for borrowing and the payments you can expect to make on your advance.How Much Do I Qualify For?
Merchant cash advance amounts depend on your monthly credit card revenue and overall business bank deposits. Approval amounts for this funding option can range as high as 100% or more of your monthly processing amounts. As an example, if your business currently has monthly gross receipts of $50,000 you can possibly get approved for 50k or more.
Common Factors That Impact Your Merchant Cash Advance Application
Your credit history has very little influence in the approval process. We look at time in business, your business banking information, and your credit card processing receipts to come up with an approval amount. This is another one of the business funding programs that can be available if you have bad credit.
How Does Paying Back The Merchant Cash Advance Work?
Once you receive the funds via bank deposit you can expect daily debits from the credit card processing account for an agreed upon percentage over the course of the payback period. The daily processing option is calculated on a 5 day business week schedule that does not include holidays.
What Documents are Needed to Apply?
Documents Required for Less Than $100,000
- Drivers License
- Bank Statements
- Proof of Ownership
- Property Lease Agreement
- Credit Card Processing Statements
- Voided Check
Additional Documents for Advances More Than $100,000
- Personal Tax Returns
- Business Tax Returns
- Profit & Loss Statement
- Balance Sheet
- Business Debt Schedule (possible)
- Potential for Others
Get a Merchant Cash Advance for your Business
Are Merchant Cash Advances Right For You?
A merchant cash advance is a great business funding option if you process credit cards and need a short term injection of business capital and you want it fast with very little documentation required. Although a merchant cash advance can be significantly more expensive than a traditional business loan, the ease and speed at which you can receive funding can make it a very attractive, especially if you need to cover immediate expenses for your business.Advantages vs. Disadvantages
Advantages
- Minimum Revenue Requirements
- Only 2 Months in Business Required
- Low Documentation Requirements
- No Credit Requirements
- Fast Funding Turnaround
Disadvantages
- More Expensive Than Traditional Loans
- Must Process Credit Cards
- Only Short Term Funding
- Only Daily Payment Option
- Some Caps on Funding Amount
Common Uses for Merchant Cash Advances
Merchant cash advances allow small business owners access to immediate capital in a short amount of time regardless of their credit history. Below you will see some examples of how small business owners are utilizing merchant cash advances.
Labor Costs
Running a small business requires employees to grow. Unfortunately during the growing stages the cost of labor can often put a business in the red. Labor is also an expense that must be paid on time above almost all other expenses. Many small business owners utilize merchant cash advances to meet short term payroll obligations because of the speed of funding with very low document requirements.
Immediate Opportunity
With the higher cost for a merchant cash advance borrowing only makes sense if the profit at stake is significantly more than the cost of borrowing. Many small business owners encounter immediate opportunities that can significantly improve profits and the overall progress of the company, but the business endeavor must be made in one or two days. Merchant cash advances can make the difference in the growth of a company by allowing the owner the flexibility to jump into a great business deal immediately.
Unexpected Expenses
Many small businesses can encounter unexpected expenses that must be paid immediately or the business cannot run. Whether it is a pipe breaking or transportation vehicles needing service or replacement, these expenses can come fast and be quite expensive. Not paying these costs immediately can affect business operations drastically. These unexpected costs that require immediate funding with very little requirements is what has made merchant cash advances so useful.
Real Estate Expense
The booming economy has also contributed to the unsustainable growth in rent costs. Many small businesses that are on the cusp of success find the rents squeezing them out of a prime location when things are going in the right direction. This is when a merchant cash advance can be great for a business. You can maintain your business while your customer base grows in a prime location.
Merchant Cash Advance FAQ’s
This type of business funding has low document requirements so you can receive funding possibly in the same day you apply.
This type of alternative funding option very flexible credit history requirements so it will have very little impact on whether or not you receive funding.
There are no restrictions, you can use the money the loan how you see fit.
It may be possible, it just depends on a few factors. Speak with your representative for more details.
This is also possible, it just depends on a few factors. Speak with your funding representative to see if it makes sense for your business.
This can depend on several details about the offer but it is definitely possible. Speak with your funding representative.
A minimum of two months in business is required.
No. We take pride in the privacy we offer our clients, we never sell your information to anyone.
Why Choose Shield Funding
- No Collateral Required on Merchant Cash Advances
- Very Competitive Rates & Terms
- Flexible Repayment Options
- No Hidden Costs
- Bad Credit Advance Options
- Funds Deposited In Your Bank Quickly
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Merchant Cash Advance Review
- Higher costs than Traditional Financing
- Flexible Credit History Requirements
- Flexible Payment Options
- Fast Funding Turnaround
- Low Minimum Time in Business
- Great for Assisting with Unexpected & Immediate Expenses
Still Need Advice?