Have you heard the term, Merchant Cash Advance recently?

Have you heard the term, Merchant Cash Advance recently? It is becoming a very popular way to hold your business over during a cash flow lull. At Merchant Cash Advance America we feel it's important that you understand how merchant cash advance rates and fees work.

How Are Merchant Cash Advance Fees Structured?

A cash advance is not a loan. You receive a lump sum payment of cash in exchange for a percentage of future credit card sales. Every day (or month), you're obligated to send the merchant cash advance company a percent of receipts:

• If sales for that day are good, you send X percent
• If sales for that day are bad, you send X percent

 

How Do Bank Interest Rates Compare to Merchant Cash Advances Fees?

Some businesses can obtain a merchant cash advance more quickly than a bank loan because the paperwork requirements are different.

Access to financing is more consistent. During the recent economic downtown, lending slowed, even to credit-worthy borrowers.

Keep Your Merchant Account in Good Standing

If you need cash right away and don't meet bank lending criteria, merchant cash advances can help to keep your business afloat until your company's cash flow improves.
Just make sure that you understand how cash advance fees and rates are structured within your agreement. Ask the company providing your merchant cash advance to provide a projected APR so you can comparison-shop more effectively.

Merchant Cash Advance America
7300 Hudson Blvd N
Suite 255
Oakdale, Mn 55128

Merchant Cash Advance, Merchant Cash Advances, Merchant Cash Advance Companies, Merchant Cash Advance Company, Business Loans

How does the Merchant Cash Advance Repayment Process Work?

How does the Merchant Cash Advance repayment process work?

A Merchant Cash Advance Company will give your business cash up front. They take a percentage of your MasterCard, Visa and Discover Card sales every day until it's paid off. It’s that simple.  It's not like you have to pay a really high set amount every month for a year.  This works for many types of businesses. It makes sense when you have a decent volume of monthly credit card sales.  The money can usually get to your business bank account in as little as 5-7 days.

I’ve heard many people refer to Merchant Cash Advances as “expensive money.” Every time I do, I cringe a little. Not because I agree, but because people often do not understand what how “expensive” traditional loans truly are.

A MCA provides a quick, low-doc, uncollateralized businessfinancing when most if not all other financing institutions will not. This high-risk financing carries much high default ratios than typical bank financing and for the MCA provider to stay in business they must make up for these losses in their pricing.

At our offices we get calls from business owners everyday asking about how a Merchant Cash Advance works. Nearly all are looking for traditional financing that their current bank or finance partner will not provide. Many of our clients recently had a traditional line of credit from their bank that has been pulled, despite never missing a payment and being a good client of the bank for years.

 Depending on the business environment and whether or not we are in a tight lending market banks can be difficult in dealing with. Merchant Cash Advance Companies know the underwriting process and with just a few questions can determine the amount of work it is going to take to get you financed.

    Quantum Merchant Services (Merchant Cash Advance America). Recent Fundings.

**Liquor Store Expansion Project, Saint Paul, Mn.  

    $40,000
 

**Hair and Nail Salon Equipment Upgrades, Omaha, NE.
    $15,000 

** Auto Repair Business, Faribault Mn

     $25,000  

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Merchant Cash Advance America
7300 Hudson Blvd N
Suite 255
Oakdale Mn 55128
1-800-815-3123 ext 302

Merchant Cash Advance Company, Merchant Cash Advance Companies, Merchant Cash Advances, Business Loans, Small Business Loans