A Merchant Cash Advance, sometimes is also referred to as credit card receivable funding. It can be characterized as an alternative method of funding a small business, which is based on credit card sales. It’s quick, efficient, and easy to manage. To receive a Merchant Cash Advance, merchants should provide a predictable credit card sales volume.
This business loan alternative is turning into one of the most popular forms of financing for small business owners. Today, many merchants prefer a Merchant Cash Advance to a business loan. If you think a Merchant Cash Advance is a short-term loan, or a high-interest advance, be aware it’s simply a sale.
First American Merchant (FAM), a reputable business loan provider and payment processor, offers exceptional business funding opportunities, including a Merchant Cash Advance, to merchants of any type and size. First American Merchant Cash Advance is purchasing your future sales at a discount. FAM purchases an amount agreed upon (by both parties) of a business’ future sales, and then advances the merchant cash for an upfront expense.
The Difference Between a Small Business Loan and a 1st American Merchant Cash Advance
Here are the main differences between small business loans and First American Merchant Cash Advances:
Small Business Loan
- Strict credit requirements
- Slow funding
- Complicated Contracts
- Lots of paperwork
Merchant Cash Advance
- Credit scores below 500 are approved
- Funds will be available in 72 hours from application
- Simplicity and flexibility
- No tax returns or financials are required
Top Benefits of a 1st American Merchant Cash Advance
Below you can read the main benefits offered by First American Merchant Cash Advances:
- High Approval Rate
You’ll be approved for a Merchant Cash Advance based on your business performance rather than personal credit, time in business or financials.
- Fast Funding and Easy Renewals
Thanks to FAM’s business funding programs, you can money in your bank in as little as 72 hours. As soon as you get approved, you can renew your advance when 50% of your balance is paid down.
- Simple, Hassle-Free Payback
You won’t be required to write a check every month, and your payments will automatically be held from your credit card transactions. You won’t have to make a fixed monthly payment.
- Revenue-Based Collections
FAM will get paid when you get paid. FAM will take only a percentage of your daily sales. If you have a slow month, you’ll make less payment. If you have a good month, you’ll pay back more. Thanks to such flexibility, you’ll always be able to afford the payments.
- No Credit or Collateral on the Line
A Merchant Cash Advance differs from a commercial business loan. The former is actually a sales transaction, so no report is made on credit reports. Also, you won’t have to provide a collateral, which can’t be said about a business loan.
A Merchant Cash Advance originally meant a lump-sum payment to a business in exchange for an agreed-upon percentage of future credit/debit card sales. Today, the term used to describe a number of small business financing options characterized by short payment terms and small regular payments.