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Merchant Cash Advance2018-10-11T00:39:38+00:00

Merchant Cash Advance Service

Our merchant cash advance service can give you access to funds quickly, making them ideal for urgent business needs. If your business accepts card payments, then you could be able to take advantage of this financing option instead of using short-term loans or a business credit card. Learn more about our merchant cash advance services for small businesses below.

What’s a Merchant Cash Advance?

A merchant cash advance is not a loan but rather a purchase and sale of future payment card receivables. It’s a great funding option for businesses that have significant credit card sales and are comfortable having the amount they remit fluctuate with daily payment card sales. Instead of adhering to a fixed term, a flat percentage of your credit and debit card sales are automatically remitted daily, except for weekends and holidays. The process stops automatically when your business delivers the total amount of future credit card receipts that it has sold. A stellar credit history is not required to qualify, there are no checks to write, and no personal collateral is needed!

Why Choose Us?

  • Solid Foundation and Reputation

  • Strong Industry Partnerships

  • Approval In As Fast As 1 Hour

  • High Applicant Approval Rates

  • Commitment To Our Clients Goals

  • We’ve Done The Research For You

  • Funding In As Fast As 24 Hours

  • Simple Repayment Terms

Do I Qualify?

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Months In Business
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Personal Credit Score
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Monthly Revenue

Repayment

Our clients enjoy the simplicity of having their payments automatically remitted as a percentage of their total daily sales. No deadlines to meet. No checks to cut. Streamlined. The entire payback period can range from 3-24 months depending on variables such as the amount advanced and your daily intake, however the average term is 6-9 months.

Percentage Of Daily Sales

  • For businesses with high credit card volume

  • Payments fluctuate based on total daily sales

  • No fixed term (average payback within 6-9 months)

  • No weekend or holiday payments

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Pricing & Return On Investment

Unlike traditional financing that places a high emphasis on your credit score, we focus on the health and overall performance of your business. The fixed cost is determined during the underwriting process and typically amounts to $0.10 to $0.40 for every $1.00 loaned or advanced. We want to see your business soar to its maximum potential and view our funding products as a valuable investment for your business’ future.

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How Do Merchant Cash Advances Work?

A merchant cash advance isn’t the same as a loan – it’s an advance on sales revenue that your business will generate in the future. Instead of paying back a fixed amount every month, a percentage of your debit and credit card sales is automatically used to repay the advance. You can often choose to pay it back based on monthly credit card sales or on a weekly basis, which helps to generate a healthy cash flow in your business. You’ll do this until the initial lump sum you borrowed is repaid in full.

Key Benefits

As a small business owner, you have a variety of funding options to choose from. Your business checking account may have an overdraft facility or you may be eligible for lines of credit. However, there are some key benefits that set the merchant cash advance apart from other business finance options.

#1 – Speed

Getting a merchant cash advance can be faster than securing small business loans or other forms of lending. Because your borrowing against future sales and repayments are taken automatically, there’s less need for banks to deep-dive into your financial history. This means that you won’t have a long and complex application process to wade through. It also allows lenders to make a decision quickly and give you prompt access to the funds.

#2 – Flexibility

Your repayment amount will be based on a percentage of the sales that you generate through credit card processing. This means that when you have a good month, you’ll pay back more, but if you have a quiet month, your repayments will be less. The fact that your repayments can ebb and flow with your revenue is a big advantage over loans. With the latter, you’re tied to fixed monthly payments regardless of your cash flow situation.

#3 – Peace of Mind

A merchant cash advance won’t generally require you to put up collateral as a guarantee. Other forms of lending can ask for you to sign away your home or business property in the event of missing payments. But with a merchant cash advance, you can enjoy peace of mind knowing that your personal possessions are not at risk.

How Much Will a Merchant Cash Advance Cost?

Unlike a business loan, a merchant cash advance won’t include interest rates that fluctuate with the economy. Instead of paying interest, the lender will apply a factor rate to your merchant account. If you multiply the total amount you want to borrow by the factor rate, then you can determine the total amount you’ll pay back over the lifetime of the advance.

If a merchant cash advance has a high factor rate, then you’ll have to repay more in total. This can make it more expensive than comparable finance options. However, by doing your research and comparing lenders, you can secure merchant cash advances with lower factoring rates. This will save you money in the long run and is worth the up-front investment of time.

At Strategic Capital, our factoring rates vary between 1.1 and 1.4 depending on your business situation. If you secure an advance of $5000 at a rate of 1.1, then you’ll repay $5500 in total. However, other lenders can have very high factoring rates so it’s important to understand exactly what you’ll be charged before committing to anything.

How Long Can I Take to Repay It?

Your business can take between three months and two years to repay the advance. This will depend on how much you borrow and your daily revenue from credit card payments. However, most businesses pay back the advance in 6-9 months so it’s generally considered a short-term funding option.

Is a Merchant Cash Advance Right for Your Business?

Thousands of businesses across the country choose to fund themselves using a merchant cash advance. They can give you the working capital you need to take your business to the next level and generate even more revenue. Here are a few ways that small business owners often use merchant cash advances;

Equipment or Stock Purchases

The cash advance can be used to purchase new equipment or inventory for your business. This may enable you to operate faster, more efficiently, or simply sell more, so that you generate greater revenue while increasing profit margins.

Hiring Staff

Hiring staff requires an upfront investment but it may take time for your business to reap the rewards. A larger workforce enables you to serve more customers and increase sales so it is often worth the money, especially if you can be confident about repaying it through the extra income they’re producing for you.

Marketing & Promotional Activities

Improving your marketing can be incredibly impactful to your bottom line but most promotional activities require funds to carry out. Whether you want to create a new website or invest in online advertising, a merchant cash advance can give you the funds to generate more business.

Receive $5,000 to $2,000,000 In Just 48 Hours!

See If You Qualify!