Frequently Asked Questions

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General Questions

What is a merchant cash advance?

A merchant cash advance is a means of alternative funding, similar to Factoring, where a business’s future receivables are purchased. Payment terms differ depending on qualifications and are contractually agreed upon prior to receiving funding.

How does a merchant cash advance work?

Upon qualification you will receive an agreed upon amount of cash by the advance provider, which is then repaid automatically using a percentage of your daily sales/transaction receipts.

How much of an advance can I receive?

Maximum funding is $250,000, but the approved amount will ultimately depend on your personal credit and business perfomance.

How quickly can I receive funding?

Fundings are advanced as quickly as 24-48 hours. Depending on the required underwriting stipulations, time frames may vary and exceed 48 hours.

Can I use my advanced funds for any purpose?

Funds are to be used for business expenses and working capital. Aside from that, you are free to make any relevant purchases.

Is this a one-time only program?

No. Our objective is to build a long term relationship by providing the alternative financial resources that can help you grow your Business

If I currently have a cash advance, can I get additional funding?

Depending on the funder, yes, you can receive additional funding and have more than one active merchant cash advance.

My business license is expired, can I still receive a cash advance?

Unfortunately, most funders require the merchant to be in good standing in order to receive funding.

What is a merchant cash advance balance letter?

This is a letter provided by your cash advance company that is used to verify your outstanding balance with that funder.

What documents will I need to provide for larger funding amounts?

Depending on the funder the requirements may differ. Usually funding amounts upward of $50,000 will require recent tax returns, financial statements/reports among other specified information and documents.

Requirements

Is there an application fee?

No, there is no fee to apply and see if your business qualifies for a cash advance.

Are all businesses eligible for merchant cash advance?

Most businesses will qualify for funding. However, at the discretion of the funder, certain industries may be restricted or may receive different funding terms. Please ask your sales representative for more information.

What paperwork do I need to supply for the application process?

Requirements vary depending on funding amounts and the need to verify pertinent information related to the merchant and the ownership of the business. Typically, a government issued ID, voided check, and business license (in the event your state does not issue licenses you will be asked to prove that you are in good standing with the Secretary of State) are required for all fundings. Additionally, landlord or mortgage verifications are also required to ensure that your business is in good standing.

What paperwork and general documents do I need to supply for the funding process?

Requirements vary depending on funding amounts and the need to verify pertinent information related to the merchant and the ownership of the business. Typically, a government issued ID, voided check, and business license (in the event your state does not issue licenses you will be asked to approve that youa re in good standing with the Secretary of State) are required for all fundings. Additionally, landlord or mortgage verifications are also required to ensure that your business is in good standing.

Will you check my personal credit?

Yes, we are required to run a personal credit check on each applicant. Additionally, we will evaluate your business’s financial performance to determine how much funding you qualify for.

Will I be required to switch payment processor?

No. If the terms of payment are based on ACH Debits from your business’s checking account, then you are not required to switch credit card processors. If the terms of payment are based on Credit Card Sales, then the answer is yes! Switching credit card processing is then mandatory to insure that your processing system is compatible with the funders’ systems.

I do not have a traditional lease. Will I still be able to receive funding?

Most funders require the merchant provide proof that they are current and in good standing with their landlord.

Can I receive a cash advance if I have tax liens?

In many cases having tax liens is not an issue, as long you are currently maintaining a payment plan and can provide official documentation.

Payment Terms

How often do I have to make payments?

Payments are contractually agreed upon prior to funding. The terms can vary, but generally are made daily or weekly as an automatic withdrawal from your bank account for a pre-approved amount or as a percentage of your daily credit card sales.

Can the daily percentage change after the account has been funded?

No, the daily percentage will not change after you have received funding.

What happens if my sales slow down or speed up after funding occurs?

We ask that you contact us to help work out a payment plan that is tailored to your specific needs and designed to keep your account in good standing.

Can I pre-pay or pay off early?

Yes, pre pay and early pay offs are encouraged and preferred. However, the terms should be agreed upon and documented prior to receiving funding . Just ask your representative about available pre pay options.

What are the advantages of an MCA over a bank loan?

Fundings are typically faster and qualifying is not as strict and rigorous. Upon approval, you may receive your lump sum within 24-48 hours. Unlike a bank loan, bad credit, previous bankruptcies, judgements and liens are not deal-breakers for receiving a business cash advance. Repayment is short-term. The process is automated and performed daily or even weekly - in smaller increments, making it much faster and easier to pay back the Cash Advance.

If I already have a business loan, does this impact my ability to get a merchant advance?

No, having a business loan does not hurt your chances of obtaining a merchant cash advance. Funding amounts are based on your credit history and how your business is performing financially.

Will an MCA help build up my credit?

Unfortunately, an MCA is not a loan and will not increase your credit.

Can you replace my current merchant advance at a lower cost or offer me more money?

Yes, depending on how your business is performing financially, you may qualify for additional funding - even if you have an open merchant advance. In some cases, funders may offer to buy out and refinance your current merchant advance(s), which may result in smaller and more affordable payments.

Can I work out a weekly payment terms for my cash advance?

Yes, however, most merchants will have to meet certain criteria and qualify to receive these terms.


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