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How Merchant Cash Advance Works

How a Merchant Cash Advance Works in Deerfield Beach and Pompano Beach, FL

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How merchant cash advance works

Credit Card processing for Restaurants

What happens when you don’t qualify for a traditional business loan or can’t find term loans that meets your needs? What happens if you don’t want equity financing or invoice financing?

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Business owners, you don’t have to sell your collection of vintage Batman comics.

The answer may be as simple as these three little words: Merchant Cash Advance. These can also be called a Business Cash Advance.

How do you deal with deal with unexpected expenses?

A merchant cash advance through a top finance company offers exactly what you need at the right time. Whether you need a small business loan for your retail operation or business funding for restaurants to expand your business operations a merchant cash advance mca is a convenient way to quickly secure the business finance your business needs.

How do Merchant Cash Advances Work?

A merchant cash loan does not require extensive paperwork, and it doesn’t have funding restrictions. You can expect less paperwork and more flexibility as well as a quick turnaround for funding. This is because merchant cash advance companies provide this financing option based on your future credit card sales and processing. The merchant cash advance provider (also known as a MCA provider) simply look at your daily credit card sales. There is no need for fancy credit card and payment processing equipment.

Merchant Cash Advances Explained – the complete guide merchant cash and the advantages and disadvantages to merchant advances.

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There are pros and cons to any type of financing.

Unlike capital loans, SBA loans, or even bank loans, you don’t need perfect credit. Yes, that means if you have poor personal credit or even bad credit. The credit bureaus score has the least impact on a positive outcome.

Even if you don’t have a good credit score, getting a merchant cash advance is possible. That’s because the approval process isn’t based on your personal or business credit history as much as it’s based on the credit card and debit card processing volume of your business. The application process is extremely fast and simple, and fast funding time means you can usually have the money in your hands within five days or less.

The Pro’s

  • Grow your business
  • Use for renovations or equipment financing
  • No Collateral
  • One-page application
  • 3 months’ business bank statements or business checking account statements
  • 3 months’ merchant credit and debit card statements
  • Get approved in one business day
  • Good as startup business loans (6 months operation minimally)
  • Not based on personal credit
  • Build business credit
  • Flexible total repayment time. More on busy days, less on slow days
  • Not a personal loan – based on merchant account sales
  • Advance amount up to $500K
  • Not a personal loan for business

Con’s

  • Must have bank account
  • Annual revenues exceeding $150,000
  • At least 6 months in business
  • Repayment method is through bank account
  • Repay the advance each time you batch payments
  • Daily payments
  • Must take credit and debit cards
  • Higher percentage rates
  • Uses factoring rate

To secure a loan with a traditional bank, you need to provide some form of collateral in case you can’t pay back the loan. When you work with a reputable advance provider, though, your merchant cash advance is secured with your daily credit card processing.

This means you don’t have to put your assets on the line to get a business loan. Collateral isn’t required because this technically is not a loan. The cash advance companies are paid back with the future credit card sales and earnings of your business. A percentage of your daily credit card receipts automatically goes back to the lender.

credit card processing

 

How the Payback Process Works

The repayment period starts as soon as you receive the funds. The retrieval rate or “hold back” is the percentage payback amount that you pay back to the lender and depends on the amount you borrowed. This can be anywhere between 5 percent and 50 percent. The “hold back” is the repayment method.

Terms of the payback period are also based on the size of your loan. It could be as short as three months or as long as 18 months. It really depends on your daily sales. Make more and you pay more. Make less and you pay less.

Terms and total repayment are also based on the size of your loan. It could be as short as three months or as long as 18 months. It really depends on your daily sales. Make more and you pay more. Make less and you pay less.

What this means to you is that there is flexibility in your payments.  You’re not required to pay a fixed daily, weekly or monthly payment.  This is the simple beauty and provides a small business solution that many regard as second to none.

Conveniently, your loan gets paid back based on the cash flow of your business. The more credit card transactions your business has, the faster you can pay back your merchant cash loan. If you have lower-than-usual credit transactions on any given day, the amount that you pay back is also lower.

Borrowing Limits Are Set High

You can get a merchant cash advance loan for a few thousand dollars, but if your needs are much bigger, you can get up to $2 million.

Merchant cash advances can help you through the next stage of your business. From Boca Raton to Zephyrhills, Sunwise Capital is committed to helping Florida small business owners with their growth and expansion plans

There are no penalties or late fees, and you’re able to pay back the loan according to your daily and weekly cash flow.

With that in mind, a merchant cash advance is funding that can really help take your business to the next level.

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Call  888.456.9223

Go to Sunwise Capital

or Apply Now

 

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