Strong credit card Sales. Shaky Credit?

Borrow against credit and debit card sales to keep business bustling

A merchant cash advance can be a timely option for businesses that find themselves in a tight spot due to a temporary cash flow shortfall, even if you have shaky credit. Though they are relatively easy to obtain, cash advances should be used sparingly and cautiously. A merchant cash advance is a quick way to secure capital for short-term business needs.

Merchant cash advances are a short-term lump sum infusion of cash based on your business’s credit and debit card deposits.

The cash advance is repaid through an automatic deduction of a fixed percentage of your credit card deposits. Since your deposits can vary, your repayment period will fluctuate accordingly. The factor rate and total fees are determined at the time your advance contract is signed and are fixed costs no matter the speed you repay.

Though merchant cash advances typically come with high fees and interest rates, easy approval and fast funding make them an attractive solution for many businesses that find themselves in a temporary financial tight spot.

For some businesses, the high repayment fees can cause them to default or require refinancing. For this reason, merchant cash advances should only be used as a short-term financing solution.

If you accept a merchant cash advance, be careful not to stack merchant cash advances. It can lead to a debt spiral and make repayment not affordable.

Merchant Cash Advance Pros & Cons

General Loan Information