Qualify For A Merchant Cash Advance
Merchant cash advance financing, more commonly known as a Working Capital Advance, is not considered a loan. It is an advance of cash on future credit card receivables. There is no APR, instead a flat fee is charged for the use of the money.
As a business owner you will be given a term sheet indicating the amount you are borrowing and what your total pay back amount will be (the fee charged for the funding).
Payment Process For A Merchant Cash Advance
Your repayment schedule is based solely on your daily credit card receipts. Each day when you batch your credit card sales, a set percentage of those daily sales will go straight to the lender. The percentage is determined prior to funding and is also within the loan documents and loan agreement.
Example of $10,000 loan with a hold back of 20% and repayment of $13,000 total ($3000 fee)
Day 1 the merchant does $1000 in credit card sales. At the end of the night when they send their totals in (batching) the merchant processor will send $200 to the lender and $800 to the merchant. Their loan balance will then be $12,800.
Day 2 the merchant only does $100 in credit card sales. Only $20 goes to the lender.
The beauty about a merchant cash advance is that the merchant need not be concerned with making loan payments or bouncing payments. The payments are automatically sent to their lender and the loan is paid down. You can concentrate on what you know best, your business.
Small Business Funding specializes in providing merchant cash advance financing to all those business owners who have had difficulty obtaining capital from traditional banks due to bad credit, lack of time in business, or for any other reason.
We provide approvals in 24 hours and funding in just a few days due to our strong and extensive network of alternative lenders. Bankruptcies and foreclosures are not an issue and there are no restrictions on the use of funds. Apply for a merchant cash advance today. Little paper work is needed and no collateral is required.