What is Merchant Cash Advance?
Merchant Cash Advance provides you with an advance against future sales. It helps your business gain upfront working capital in exchange for a percentage of future sales. The lender works with your current bank and/or credit card terminal provider so they can know about your business credit and how much money is flowing through your business. Select a business cash advance lender that works for you, with GConnectPro.
A Merchant Cash Advance uses your bank account deposits and/or business’s card terminal to secure lending. It is perfect for small businesses that don’t have many assets, but who have a good volume of deposits and card transactions every month. Repayments are then taken as a proportion of the revenue of your business. We can even help you get business cash advance for bad credit.
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Benefits of Merchant Cash Advance
Why should you apply for a Merchant Cash Advance for your Business?
You will most likely make the repayments as a percentage of revenue. So, they go up and down proportionally with the income of your business.
Since the lender works directly with the bank and/or card terminal provider, the percentage they take for repayments is taken at the source
Merchant Cash Advance opens a new line of credit. You can get other types of finance for your business along with a merchant cash advance.
Merchant Cash Advances are unsecured and so you don’t need to provide collateral. However, the MCA provider may require a personal guarantee.
Types of Repayment Structures in Merchant Cash Advance
- Percent of Card Sales: The Business Cash Advance provider automatically deducts a percentage of your card sales until the agreed amount has been repaid in full. The percentage deducted is directly dependent on the number of sales and card transactions made by your business in a month. The more the sales, the more will be the percentage deducted and vice-versa.
- Fixed Daily Withdrawals: This type of agreement lays down the provision to withdraw a fixed payment daily or weekly, based on an estimate of your monthly revenue. Unlike the repayment structure tied to the sales, your payment does not fluctuate. This means you will pay the same amount irrespective of whether your sales are down or up.
Who qualifies for a Merchant Cash Advance?
Personal Credit Score
Time in Business
Over 3 months
Registered in the US
Documents Required to apply for a Merchant Cash Advance
- Your personal identification
- Certificate or license for the business
- Proof of business ownership
- Business financials, including bank statements
- Voided Business Check
- YTD Balance Sheet
- YTD Profit & Loss Statement
- Credit card processing statements
Use the calculator given below to find out what will be the rate of a merchant cash advance for your small business.
How long will it take to repay the Merchant Cash Advance?
The average repayment time for a Merchant Cash Advance is 8 to 9 months. But, the term can be as short as 4 months and as long as 18, depending on your business. The higher the fixed percentage of your sales you’re paying the lender with, the shorter your repayment time, and the tighter your cash flow.
Merchant Cash Advance Application Process
with Global Connect Pro Financial
- Application form: Firstly, you need to fill out our online application form giving us basic details of your business finance requirements.
- Advisor Call: Our Financial Adviser will call you to discuss your qualifications, cash advance options, and help you prepare for your business cash advance application.
- Loan Application: Once all the documents are ready and qualifications are met, we’ll move on to the actual loan application with the lender.
- Loan Approval: Our Financial Advisers and Agents will keep in touch with the lender to ensure that your cash advance is approved at the earliest.
Is Merchant Cash Advance right for your business?
If you have had strong sales but struggle with too little credit, or a bad credit score, then a quick Business Cash Advance will be a good option for your business.
It is also a great option if your business needs access to working capital quickly to take advantage of an opportunity, or to purchase stock at a discount, or for a unique marketing opportunity, or any other short-term capital requirements.
Credit requirements for Merchant Cash Advance are less stringent. So, it could be a great financing option for businesses that do a lot of credit card transactions but don’t have the most perfect credit.
You can check out Merchant Cash Advance from direct lenders to make a learned decision. A bad credit merchant cash advance is also a great option for small businesses and startups.
Find out what Business Cash Advance lender is right for you and get quick Business Cash Advance, only with GConnectPro!