Merchant Cash Advances

How It Works

A cash advance converts future credit card receivables into immediate cash for you to use for your business.  Repayment is based on a small fixed % of those future credit card receivables.  Repayment is automatically deducted from your credit card batch settlements until your cash advance balance is satisfied.  In short, we don’t get paid until you get paid.  This helps you maintain cash flow in your business during slow months.

Business Cash Advance vs. Small Business Loans

Regular business loans come with many obstacles for a small business owner, including a drawn out approval process, stacks of paperwork, low approval rates, collateral and personal guarantees for security, fixed monthly payments and restrictions on use of funds.  Every business owner who has ever tried to get a business loan knows that it can often be very difficult to convince a lending institution to approve an application for credit.  The criteria is often more stringent than a personal loan, and banks are often reticent against loaning money to a business that doesn’t produce enough net income or have a long track record of borrowing and paying back such notes.

While it might be difficult to obtain a business loan, the criteria for a cash advance is different and the access to cash advance funding is much easier.  Many cash advances are offered to merchants with less than stellar credit or to those who have extended themselves into a bit of debt while growing their businesses.

Similar to factor companies that buy your business-to-business receivables, a cash advance company can offer merchants up-front money based on their business-to-consumer sales receipts.