Merchant Cash Advance on Credit Card Receivables

Need Money?

You might be asking yourself, what is a merchant cash advance on credit card receivables? This is not a solution that a lot of merchants know about. But, it’s also not one that many merchants would need either. This is an alternative to the normal small business loan one would get from their bank. Keep in mind though, in most cases, this will be a higher rate on what you would pay for a loan from your bank. An advance on your future credit card receivables will not build your business credit as this is not a loan. However, if you are looking for cash quickly without using a bank that has denied you, this can be a great solution for you. This offers funding by providing an advance on future credit card sales. A percentage of each batch then is then withheld until the advance is paid off. These are short term advances and are usually paid back in 6-12 months. The loan can be anywhere from a few thousand dollars to a hundreds of thousands, so this fits many different needs for you. The fee and the amount of the advance is based on the current credit card volume, owners credit score, lease on current building and length in business. In most cases, you must be processing credit cards and in business for at least a year. This is a solution, in most cases, for retail businesses and not online stores. In most cases, you can also renew the loan at least one more time. There are no fixed payments or time frames. It’s just the percentage of your credit card sales that you run. What this means, if your sales are high, your advance will be paid off faster. If its slow, no worries, it’ll just be paid off a little slower. This can be used to buy inventory, pay employees or get through a slow time in the business cycle.

Learn More