MERCHANT CASH ADVANCE
Access working capital quickly and efficiently to fuel growth. Secure a successful future for your business with our merchant cash advance.
MERCHANT CASH ADVANCE
Access working capital quickly and efficiently to fuel growth. Secure a successful future for your business with our merchant cash advance.
What is Merchant Cash Advance?
Finhub offers merchant cash advances, which provide businesses with a lump sum of capital in exchange for a percentage of future sales until the purchase amount is fulfilled. Our Funding Advisors collaborate with you to develop a customized funding plan to jumpstart your business’s growth, without exceeding your cash flow. MCA funding ranges from $3,000 to $500,000 with flexible repayment schedules, and no fixed term. Business owners with a minimum of $10,000-$15,000 monthly sales over the last three months typically qualify for 70-120% funding. Finhub makes applying for an MCA quick and hassle-free. Our online portal allows you to complete the application for your business in just a few minutes, with no need for time-consuming paperwork.
Merchant Cash Advance Rates
Merchant cash advances differ from traditional loans in that they use factor rates instead of interest rates. Factor rates are expressed as decimal figures that indicate the additional amount you will owe on top of the original loan amount. The specific factor rate you receive is determined by a risk assessment. Typically, factor rates for merchant cash advances range from 1.1 to 1.5.
How to Apply for a Merchant Cash Advance?
- Businesses in need of rapid funding, with funds typically available in as little as 24 hours.
- Businesses that process high volumes of credit and debit card transactions.
- B2C businesses in need of smaller funding amounts.
- Businesses with lower credit scores.
- Business owners without collateral, such as real estate or other assets.
How to Get a Merchant Cash Advance
Apply
Start by gathering three months of bank statements and any other relevant records. To expedite the approval process.
Choose Funding
A Funding Advisor will contact you within an hour (during regular business hours) to discuss your funding options and complete the application process.
Get Funded
After determining the best funding option for your business, you can receive approval and have the funds deposited into your account in as little as 24 hours.
Set Repayment
Repayment will be set up automatically, with payments based on your business's daily or weekly debit and credit card sales.
How to Use a Merchant Cash Advance
- Seize time-sensitive growth opportunities by utilizing MCAs for expanding your business.
- Expand your marketing strategies by investing in advertising, promotional campaigns, or launching new marketing channels to reach more potential customers.
- Purchase inventory or raw materials in bulk, which can help lower costs and increase profit margins.
- Upgrade equipment or technology to improve operational efficiency, save time, and improve the quality of goods or services offered.
- Hire new staff to increase production capacity, provide better customer service, or expand your business to new markets.
- Invest in training and continuing education programs for your staff to enhance their skills, knowledge, and productivity, which can lead to better business performance and growth.
Requirements for Merchant Cash Advance
At Finhub, we understand that not all business owners have the luxury of owning property or an impeccable credit score. That’s why we offer more flexible approval requirements that take into account the overall health of your business, rather than just your credit score.
To qualify for our funding options, your business must accept credit and debit card payments, and we do not require any collateral. Instead, we look at a variety of factors to determine your eligibility, including:
- Business revenue : We take a close look at your business revenue to ensure that you have the cash flow to make timely repayments.
- Cash flow : We analyze your cash flow to determine if you have sufficient funds to meet your financial obligations.
- Vendor payment history : We assess your vendor payment history to ensure that you have a good track record of paying your bills on time.
- Years in business : We consider the number of years your business has been in operation, as this can indicate stability and success.
- Public records : We review your public records to identify any outstanding liens, judgments, or bankruptcies.
Merchant Cash Advance Q&A
Each business is unique, and it’s always best to speak with one of our funding advisors to review your circumstances and assess your eligibility. In general, we look for consistent revenue with minimum monthly receipts of $7,500 or more, and at least six months in business. We understand that credit scores don’t tell the whole story, so we also consider the overall growth potential of your business.
