Merchant Cash Advance: $5,000 – $400,000
A merchant cash advance allows a business owner, who accepts credit card payments or has other payment or receivables streams, to obtain an advance of the funds regularly flowing through the business’ merchant account. The most popular way is to have the lender look at the last 3 – 6 months of bank statements and credit card statements to determine the cash flow of the business and fund the money as soon as the next day. Payments are then made electronically when the customer gives the lender authorization to debit directly from the business’s bank account for the purpose of bill payment.
Who can Qualify and what are the Minimum Requirements?
Requirements for this type of financing are extremely lenient due to the nature and terms of the loan. Generally, any business that needs access to fast working capital that is in business atleast 6-12 months and processes credit card transactions can qualify. Normally, credit is not a big factor and tax returns are not required for approval. Popular loans are granted after the lender is able to look at the last 4 – 6 months of bank statements to determine the cash flow of the business.
How Much Will a Cash Advance Cost?
Merchant cash advance factor rates can be very expensive. Traditional cash advance loans will have lower interest rates compared to non-traditional loans. But non-traditional rates, although much higher, serve a valuable purpose if you need cash quick and can generate more revenue by obtaining the cash. The bottom line is to know how much capital you’re going to need, which lender can fund your situation, what their requirements are and what your business can afford. SEG Funding will walk you through this process step-by-step to ensure you are getting the best business loan for your situation.