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How does a cash advance work?
A cash advance is structured so that you can get money for your business operations quickly and easily. It is not a loan and there are no loan payments so you don’t have to go through a long bank process. The advance of cash is based on future credit and debit sales. A portion of these future credit sales are purchased at a discount. To pay this obligation, a fixed percentage of daily credit sales are retrieved when they are “batched”. There are no monthly checks to write or a worry of making payments on time.
Do I have to process credit cards to get a cash advance?
Yes. This program is only open to businesses that have daily credit card receipts.
How do I qualify?
You will need to fill out a pre-qualification application. You will need to have been in business for more than 12 months and have at least $3,000 in credit card transactions per month. There are some other requirements that the account manager can cover with you.
Are there any restrictions on how I can use the money?
No. You are free to use the money for what is best for your business. Examples of how other businesses have used their merchant cash advance are: seating for their restaurant, advertising, seasonal inventory build up, computers, software, and many times for unforeseen expenses like maintenance issues or equipment replacement.
How quickly can I get the money?
You can get your cash in as little as 5 days depending on the completeness of your information. Some can take up to 14 days is information needs to be verified or documents are incomplete.
Can I use my current credit card processor?
There maybe some instances whereby the credit card processor you are currently using doesn’t partner with our program. In that instance you will need to transfer your credit card processing to one of our affiliated partners if you would like to do a merchant cash advance with our company.
Is there any early payment penalty or discount?
No. This is not a loan so there is no penalty and no discount. If you want to settle your obligation early but there will be no difference in the amount you pay.
Why is my personal credit reviewed?
As part of the business-friendly credit assessment we use a model that blends business and guarantor information to assess risk. Your personal credit is part of this process.
How do I prove ownership?
Proving ownership can be done by providing your Articles of Incorporation, board meeting minutes, a corporate tax return or a business license with the guarantors name as owner.
How are payments made?
A fixed percentage is retrieved daily from your credit card sales. The money is retrieved when the credit card sales are “batched”. This is done until the obligation is paid in full.
How often do the payments need to be retrieved?
Payments are made daily.
Do I get a monthly statement?
Yes. You will be mailed a monthly statement or be able to view it online. All the details of how to view your account will be provided to you.
What is "gross volume"?
Gross volume is your total sales receipts from all sources. This includes cash, credit cards, debit cards and checks.
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