Merchant cash advance financing offers a different approach for business owners to receive funds for their organizations. It is not a loan—which obligates you to make a monthly payment until you pay back what you borrowed—but a lump sum of capital provided to you in exchange for a portion of your business’ future credit card sales.
Compared to business loans, typical merchant cash advances are easier to apply for and, therefore, quicker to obtain, so you can use that money to grow your company and increase your profit margins that much sooner. In fact, some companies provide you with working capital less than a week after you get approved.
Business owners commonly use merchant cash advance financing to buy much-needed inventory, replace equipment, hire employees, invest in advertising campaigns, and pay off old debt that’s been weighing them down.
It’s all about your business’ credit card sales.
This kind of financing is geared mostly toward businesses with strong and consistent credit card sales, such as restaurants, hotels, retail stores and supermarkets.
The amount of the advance varies depending on estimated future sales, your credit score and other factors. When you submit a one-page application and six months of your company’s bank and credit card processing statements, the merchant cash advance provider will determine what percentage of your credit card sales goes toward paying back the funds advanced, as well as the total amount you have to pay back.
Merchant cash advance financing can offer many benefits to business owners, so it’s important to consider your options carefully to determine if it’s the right decision for you.
Interested in getting a merchant cash advance? Learn more about MPX’s Merchant Cash Advance program.