Cash Advance on Credit Card Sales
Fast, Flexible Financing for the future of your business.
A Cash Advance is a faster, easier way to access the funds you need
A Cash Advance turns future credit card sales into working capital, with clear and easy payback terms. Faster and easier to apply than a conventional loan from your bank, usually 1-2 day approvals. Then funded in 2-3 days once approved. A Cash Advance is based on your future sales, so repayment is worry-free. Your payment amount is based on your daily sales. So when sales are down, so is your payment.
Let’s fund your future
- Refresh your space Renovate your location to enhance your brand and your customers’ experience.
- Upgrade equipment Get the hardware and equipment you need to streamline your space and operations.
- Hire more employees Staff up and invest in the people who’ll help take your venture to the next level.
- Open new locations Expand your reach, extend your footprint, and experience the growth that drives success.
- Amplify your marketing Reach a larger audience with smart, creative marketing initiatives.
- Fix overdue repairs Finally catch up on the things that need your attention.
You have complete flexibility putting your funds to work:
- Working Capital (#1 reason)
- Employee salaries
- Temporary labor
- Raw materials
- Inventory
- Office supplies
- MFG equipment
- Fixed assets
- Business expansion
- Real estate purchase / lease
- Cargo / delivery vehicles
- Forklifts
- Past-due bills
- Accounts payable
- No interest rate
- No fixed term
- No collateral
- No personal guarantee
- No fixed payment amount
- No ACH overdraft fees
Bank Loan vs. Merchant Cash Advance
While they both offer funding for businesses, business loans and merchant cash advances are two different things. A business loan can provide you with a lump sum based on your credit score (usually 650 or higher) and/or collateral. You’ll repay the original amount, plus interest, through fixed monthly payments. Even if business is slow, you still pay the same amount monthly. Merchant cash advances, on the other hand, rarely require collateral and are more lenient on credit scores.
Many programs let you have a personal credit score as low as 500. Instead of credit scores, merchant cash advance lenders put more emphasis on strong credit card sales and length of time in business.
How a Cash Advance Works
With a Cash Advance on your future credit card sales, you’ll repay the original amount advanced, plus a flat fee, through a percentage of your daily credit card sales. The lender will determine approximately what percentage it needs to deduct from your daily credit card sales in order to recoup costs in an expected time frame. For example, a lender may want to be repaid within 18 months. They would look at your daily credit card sales and determine what percentage they would need to deduct on average from your daily batch in order to recoup their advance, plus the flat fee, within 18 months. Usually around 15% or less of your daily sales is deducted. You’re not bound to that time frame; it’s simply a rough estimate of when the lender expects to be paid back. If your sales slow down the amount of the payment deduction is down, the advance may take longer to repay, while if your sales pick up, you’ll repay the money more quickly.
A Cash Advance usually require that you be in business 9 months to 1 year. Also requires 3 to 6 month of credit card processing statements.
If you think a Cash Advance could help your business, and would like more details, please give us a call at 281-474-4144 Opt 2 today. We’ll be happy to go over the details to see if a Cash Advance is right for you.