Merchant Cash Advance
Interested in Merchant Cash Advance?
Calculate your payment below!
Quick and easy process
6 – 18 months
12% – 34.99%
as little as 24 hours
What is a Merchant Cash Advance?
A Merchant Cash Advance is a way for a small business to use their future credit card sales to secure a loan. The repayment of the loan is collected as a percentage of your credit card sales until the borrowed balance is paid in full. For example, if you were to borrow $12,000 over a one year period, and you processed $10,000 in credit card sales per month, you would pay 10% of your credit card sales plus a fee until your balance is paid in full.This program is great for retail businesses with limited collateral that are in need for a quick financing solution. This is also great for seasonal businesses; loan payments are lower when business is slow and higher when business is booming!
What are the benefits of a merchant cash advance?
Quick and easy application process
Variable payments mean you repay in line with your revenue fluctuations
Limited documentation required
Underwriting and closing within 24-48 hours
Flexible repayment terms
What are the best industries for Merchant Cash Advance?
The best industries for a Merchant Cash Advance are retail companies that process high volumes of credit card sales. If you are a B2B business, this could be great for you as well, you just have to be processing credit cards!
How does the Factoring Merchant Cash Advance process work?
The process for a Merchant Cash Advance is a quick and simple process. With a simple online application, 3 months of bank statements and 3 months of credit card statements, we can have you approved and closed within 24 hours!
Speak with a SMB Lending Expert to prequalify for a merchant cash advance. SMB Compass’s simple and secure online application can be completed in a matter of minutes, with no obligations and no impact on your personal credit!
Once your merchant cash advance application is complete we will review the rates, terms, and any questions you have about your loan approval. We will only move forward when all of your questions are answered!
Once you accept your approval and provide closing documents we will review your terms again to make sure that all your questions are answered. Your loan will then be closed and funded within 24 hours!
Merchant Cash Advance Case Study
One of our clients owns a sports bar and restaurant that experiences seasonality based on the different sports seasons. During the NFL and NBA season, monthly sales are at its peak and during off season, their revenue typically drops by about 30%. With this being the case we needed to come up with a working capital solution that was going to give them flexible payment terms that would align with the seasonality of the business. By using a merchant cash advance that was paid back through 10% of their monthly credit card sales, they were able to pay back the loan faster when business revenues were at a high and slower when revenues were at a low. The flexibility in repayment versus at fixed amortizing loan made a merchant cash advance the perfect solutions.