Merchant Cash Advance
Merchant cash advances provide small businesses with an alternative from traditional bank loans. Business owners receive funds as a lump sum upfront from a merchant cash advance provider and repay the advance with a percentage of the business’s sales
Merchant Cash Advance Details
LOAN AMOUNTS
$2,500 – $500,000
INTEREST RATES
10 – 350% APR
REPAYMENT TERMS
3 – 36 months
TURNAROUND TIME
1 – 7 days
Pros
- Fast access to cash
- Flexible repayment terms
- Strong credit not required
- You choose how to use
- No collateral required
- No personal Guarantee may be required
- No UCC may be filed
A merchant cash advance is not a business loan but should be considered a cash advance based on the volume of your credit card receipts. The funding provider gets paid back by taking a portion of your future credit card sales each day. You can usually get approved in a day or two—with very little paperwork. But you’ll likely pay for this convenience in higher interest rates. Because this option is more expensive than some other options, it’s a good way to take advantage of a short-term opportunity that requires fast cash.
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