For small businesses with a lot credit card transactions, this is a great short term financing option. A merchant cash advance traditionally refers to a funding option that provides a lump sum cash payment for a percentage of their future credit card or debit card sales. The advances are then repaid through daily or weekly payments within 3-24 months
One thing to keep in mind is that it can be expensive to obtain an advance. The fees charged to the borrower tend to be higher than a traditional loan. The biggest downside however, is that it reduces your cash flow due to the nature of its conditions.
Another benefit to a cash advance is the generally lax requirements for small businesses to obtain it. Suitable for businesses with less established credit history. Plus, there is no need to provide a collateral to obtain an advance.
Although the requirements can be lax, it’s advisable for the business to be able to establish a steady credit/debit card revenue stream as the advance will reduce the business’ daily or weekly cash flow. If your business has been operating for 3 months with an annual revenue of $60,000 on average, you are in a good position to obtain a merchant cash advance.
The application process is straightforward and you can find out your options quickly through our simple application. To speed up the process, have the following documents ready prior to submitting your application: