By: The Funding Team

According to a new article by the Merchant Processing Resource, the term Merchant Cash Advance has taken on a whole new meaning. Once characterized as a financing program exclusively based off credit card sales, it has grown to include purchases of total sales and even microloans. It’s an interesting development considering the word loan was explicitly taboo just a few years ago. But there are now so many different short-term funding programs being offered, that they’re all being lumped into one category, Merchant Cash Advance.

That means its impossible to characterize Merchant Cash Advances in any one way. They can’t just be affordable or expensive, nor for people with good credit or bad credit. They could be anything. That’s why it’s important to ask your funding expert what your options are, based on what you do.

 

You Don’t Need to Accept Credit Cards

Most importantly, there is no longer a requirement to accept at least $5,000 in credit cards a month, nor do you have to accept cards at all! We can offer you a Merchant Cash Advance service that is based purely on your historical sales history. If you’re in the large group of businesses whose credit card revenues are less than 20% of their total sales, chances are you may have passed on a Merchant Cash Advance before.

We are inviting you to come back and try again because your approval amount will be significantly higher. Businesses funded via these Cash Flow Advances are closing on deals for up to $1 million. We publicly advertise funding up to $500,000 but if your business is doing a few million a month in sales, there’s no reason you can’t get approved for a million dollars in funding.

 

Expectations

We get a lot of inquiries from small businesses doing $4,000 a month in gross sales with funding requests for $500,000. That’s not going to happen and we doubt you’d believe it would anyway. The only company that’s going to do that is the Powerball Lottery. We are in the business of making sound financial decisions and since we’re not grading your credit score very heavily, our investment has to be in the realm of rational. A 1:1 ratio is probably a best case scenario. If you generate $20,000 a month in sales, the maximum Merchant Cash Advance will probably come in at around $20,000.

The SBA defines a small retail business as doing less than $1.75 million a month in sales. Someone at the upper end of that spectrum would certainly qualify for $500,000. Obviously small can have many meanings. We specialize in all kinds of small. Whether you’re a sole proprietor with no employees doing $10,000 a month in sales or a retail king doing over a million, you can be assured that you will receive the same level of service, support, and respect.

Inquire through our website today and we’ll be glad to discuss your options. Talk to you soon!