A merchant cash advance is a type of receivables financing designed for business owners that accept credit cards as a form of payment from their clients. A business that processes at least $2500 per month in Visa MasterCard or Discover transactions can sell a portion of their future sales to lenders.
A merchant cash advance is NOT a loan and there is no APR or interest rate associated with the advance. A merchant cash advance is when a lender purchases, or "advances" a business owner X amount of dollars for Y amount of future sales.
For instance: (Approximate - Must call or apply for details)
Joes Restaurant processes $20,000 per month in credit card transactions and they need $30,000 for kitchen upgrades.
The lender will purchase $36,000 of future sales for $30,000
The lender will advance the merchant the full $30,000 and collect a small percentage of the daily sales until we have recouped the $36,000 in sales that we purchased for $30,000
A merchant cash advance is a great option for business owners with less than perfect credit or that have been in business for less than two years. Lenders primary concern is business type, processing history and transaction size. Personal credit can be below 500! To learn more about visit merchant cash advances visite our merchant cash advance page.
Questions? Call 1-888-785-6811
