Merchant Cash Advance
Easier and quicker than bank funding
Easy Funding Source for your business needs
First: Even though it is called a "loan", it is really funding based upon a purchase of future receivables. The technical term is called "factoring", and it is legal federally and in all 50 states. And it exists because most small businesses are un-bankable. How these fundings are underwritten is that the last 6 months of revenue is analyzed (along with other factors), and then funding is then provided based upon what the lender projects the company will earn over the next 6 to 9 months (sometimes the next 12 to 15 months for business owners with better personal credit). The average daily bank balances of the business and the business owners personal credit score will also be an important variable in determining how much funding will be provided.
NOW LET'S LEARN ABOUT THE INDUSTRY ITSELF. . .
The industry itself is kind of self-explanatory. Since the mortgage crisis happened in late 2008 or 2009 banks have tightened up and won't really loan any money to business owners with less than great personal credit, and/or who don't have equity in a commercial property that is lien free (without a mortgage). So if a small business owner needs some quick cash for repairs or equipment replacement or to run a very profitable marketing campaign or to pay off a tax lien that is strangling them financially, most of those business owners only know about the old merchant cash advance industry which usually charges around 45% or more interest for a 3 month loan. Yes, that is right, 15% per month in fees on a 3 month advance/funding is the norm for a merchant cash advance. And, it was a multi-billion dollar industry because business owners just couldn't get money from the banks; so if they needed the money they would usually just bite the bullet and pay these rates, as painful as it is. And the old cash advance industry required that every borrower had to change their credit card processing. This only happens with maybe 1 in 50 deals now.
The new Merchant Cash Advance program will provide funding to your company pending approval. Approval should occur within 72 hours and cash advance within the week. Our rates are affordable, easy to repay through your credit card processing and cash advances are renewable. The amount you pay back is based on your company credit card sales, personal credit and company credit. Approval is currently running at 80 to 90%. Bank approval is at 10%!