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Is a Merchant Cash Advance Right for You?

By December 11, 2019No Comments

As a business owner, you have a thousand things on your to-do list. Figuring out how to get an increase in working capital is there, along with paying your employees, making sure you get time off, and keeping customers happy. It’s a lot to keep up with — and it’s all virtually impossible if you don’t have the funds to make it happen.

Merchant ReFi can help. We handle merchant finance for a variety of companies, and we’d be happy to help you. Merchant finance is necessary to keep your business going and to eventually grow your business, but it can feel like a losing battle at times just to get the funds needed! If you’ve struggled to secure funding because of your credit score, lack of collateral, the repayment process, or a slow process, then a merchant cash advance may be the option you’ve been looking for! Keep reading to learn more about merchant advance capital, and then contact us with questions or apply online to get your merchant finance started right away!

What is a merchant cash advance?

It’s important to note that a merchant cash advance is not a loan. It’s an advance payment against your business’s future income. Essentially, you receive an upfront sum of cash in exchange for a specified portion of your future sales. Business owners who choose merchant cash advances typically see revenue primarily from credit and debit card sales. This could include retail shops or restaurants, as an example.

The reason it’s popular with businesses who see lots of credit card payments is that credit card payments are a popular way to repay the cash advance. Here at Merchant ReFi, for example, we collect repayments daily via your company’s credit card transactions. So, instead of fixed payments every month, you make daily payments, plus fees, based on how much your business is making. You can see how this is beneficial because it matches the growth rate and revenue of your business.

Let’s discuss the mathematics of this form of merchant finance. Here at Merchant ReFi, we offer factor fees at 1.14 to 1.48. Let’s say you’re advanced $15,000 with a factor rate of 1.25. You would multiply $15,000 by 1.25, producing $18,750. This is the amount of money you would need to repay within a specified amount of time (and from daily repayments we automatically calculate and take).

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What does a merchant cash advance require?

Something that sets this form of merchant finance apart from business capital loans and other funding options is that it doesn’t require collateral. You don’t have to worry about taking out equity on your business or house because merchant cash advances don’t require collateral. Most businesses that received approval for a merchant cash advance with us met the following qualifications:

  • Credit scores of 500 or more
  • Annual revenues exceeding $180,000
  • Been in business for at least six months

Most applications for merchant finance are done online. The possibility of getting approved on the same day or even within hours is reasonably good. Some documents we require to apply for a merchant cash advance include credit scores, credit card processing statements, a voided business check, bank statements, and a driver’s license.

What are the advantages of a merchant cash advance?

Did those requirements look good to you? We’re not surprised. The advantages of a merchant cash advance are immense and obvious. It’s a fast, easy way to secure funding for your business without needing collateral. Here are some benefits of this form of merchant finance explained:

  • Quicker funding: The potential for quick approval and funding is there. The final decision is often made within hours and funds are delivered to you immediately afterward.
  • Straightforward application process: You can easily apply for merchant finance online by completing the form and uploading the supporting documents.
  • Reasonable credit score: Merchant cash advance lenders are much more lenient for credit scores.
  • No collateral: You don’t need to use a personal or a business asset as a guarantee of repayment.
  • Lenient payments: What you pay each day is proportionate to how much your business is earning, so you don’t need to stress on slow days when you’re not bringing in much income.
  • Increased borrowing limits: Merchant cash advances can have borrowing limits up to $2,000,000.

What businesses benefit from merchant cash advances?

Merchant cash advances are ideal for businesses that are just starting out or need access to cash fast. If this matches you, then chances are high that this form of merchant finance could be right for you!

Businesses with poor credit, businesses with unpaid invoices, and businesses with a lot of customers using credit or debit cards will all benefit.

What’s the process for securing a merchant cash advance?

The process is simple and straightforward: you can apply online today and upload the documents we’ve already discussed (such as your credit scores, driver’s license, bank statements, etc.). You can contact us to ask any questions or get further guidance in the decision-making process. It’s all done in three easy steps:

  • Apply: Fill out our online application to start the qualification process.
  • Review: One of our agents will review your application and work to get you the best available rate.
  • Approved: You’ll receive working capital for your business (and 10,000 United MileagePlus® bonus award miles!).

Get Help With Merchant Finance Today

Let our merchant cash advance company help your business succeed. Check out these blog posts for more information about merchant finance and merchant cash advances:

We’ll make the process as straightforward, simple, and helpful as possible. Don’t let funding be an obstacle to your business dream. Contact us today for merchant finance and begin the online application now!

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