Merchant Cash Advance
Provide immediate access to funds based on future credit card receivables
MCA Financing
Companies across the nation are finding it increasingly more difficult to get approved for loans than ever before. With banks regularly turning down reputable companies, finding ways to fund your company’s needs has never been more crucial. A merchant cash advance is designed for business owners to obtain capital fast.
At JSV Capital, our merchant cash advance services are among the most reliable for business funding in the nation. Our funding options offer restaurants, bars, retailers, and other businesses the ability to thrive and even expand during trying times. However, it’s essential to understand the terms of any agreement before you sign on the dotted line. JSV Capital is here to educate our clients on how our merchant cash advance works and what options are available.
What Is A Merchant Cash Advance?
A merchant cash advance is one of the most effective ways to get access to capital quickly and without hassle. It is essentially a down payment on your business’s future revenue. As the business owner, you get paid back in a defined amount of time based on your business’s future credit card receivables. A merchant cash advance is a purchase of your future sales at a discount. This seemingly minor difference makes a significant impact on how cash advances work.
Cash advances offer much higher approval rates, flexible payment plans, and higher levels of freedom for business owners. In addition, these options are a purchase rather than a loan and can reach disbursement within a matter of days.
Why Are Merchant Cash Advances Popular?
The rapid growth of merchant cash advance use is not a coincidence. As a business owner, you do not need to go through a lengthy process or wait for approval. There are many benefits to choosing a cash advance over a standard loan, including the following:
Higher Approval Rates
Most people who apply for a bank loan will not get one due to a bad credit rating or limited time in business. Merchant cash advances have approval ratings of over 70 percent, making it an ideal option for individuals who may have already been denied a loan.
No Collateral Necessary
Since merchant cash advances aren’t actual loans, lenders cannot require you to offer collateral to receive funding. This means you have a lower risk of loss should your business falter.
Flexible Monthly Payments
Fixed monthly payments sound great, but they can pressure companies that deal with noticeable cash flow surges. Since cash advance payments are based on how much you make per week (or per day), every payment you make will be proportional to your profits. So if you don’t make any money one week, you don’t pay anything that week.
Less Paperwork
Paperwork is what makes most traditional business loans so challenging to obtain. Along with running a credit check, lenders often require large amounts of documentation proving your ability to pay things back. Cash advances, on the other hand, require minimal paperwork and proof since it’s a purchase.
Faster Access To Cash
Cash advances move from application to disbursement within days. Compared to a typical bank loan, that can take weeks or even months to clear.
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What Do I Need to Qualify for a Loan?
How to Apply
What Do I Need To Apply For A Merchant Cash Advance?
Merchant cash advances do not require a credit check, business history documentation, or tax documents for approval. Since cash advances involve buying future sales, the only real documentation you need is proof that your business has sales. Most cash advances will require records of credit card purchases.
Generally speaking, most business owners who have a positive cash flow and have been in business for at least three months will be able to get approved.
Are Merchant Cash Advances High Interest?
Cash advances don’t operate by the same laws that loans do. Therefore, they don’t have interest rates. Advances, however, have factor rates. A factor rate acts like an interest rate. The only difference is that you calculate the total amount that you pay by multiplying the “loan” amount by the factor.
For example, if you had a merchant cash advance of $1,000 with a factor of 1.1, you would owe a total of $1,100. On the other hand, if you had a cash advance of $100 with a factor of 1.02, you would have to pay a total of $102. Because cash advances are rated on a total amount paid, you never have to worry about compounding interest. Instead, it’s a full fee that you get to pay off at your own pace.
Get Your Business Loan Today
The amount of funding you can receive depends on how much money your business is currently taking in, plus a couple of other factors. To learn more, speak with our specialists at JSV Capital about your financial needs.
Inquire about our Business Loan programs.
We are one of the most trusted sources for merchant cash advances. Unlike most lending companies, JSV Capital provides access to quick and affordable small business funding options for all types of businesses.
We pride ourselves on being a small business financing and funding partner that helps facilitate growth while always providing exceptional, dedicated service. Talk to us today about how we can support your growth, limit your turnover, and put you on a solid track to success and profit.
Apply For Merchant Cash Advance Financing
No cost to apply. Applying will not impact your credit score.