Merchant Cash Advance
Provide immediate access to funds based on future credit card receivables
Many small businesses all over the U.S. are finding it increasingly more difficult to get loan approvals. It’s not uncommon for certain banks to turn down companies, even if you have a good track record. 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. Although it may not seem like much, the difference can make significantly affect how a merchant cash advance works.
Cash advances offer much higher approval rates, flexible payment plans, and offer more freedoms to small business owners. In addition, these options are essentially a purchase (not a loan) and can be disbursed in just a few business days.
Why Get A Merchant Cash Advance?
The rise in popularity of merchant cash advance use is not happenstance. As a business owner, you do not need to go through a lengthy process or wait for approval. In addition, the benefits of choosing a merchant cash advance rather than a standard loan option are as follows:
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.
Paperwork is what makes most traditional business loans so challenging to obtain. Lenders run credit checks, but they also ask for a large number of documents to prove your financial stability – essentially gauging your ability to pay back what you owe. 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 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. Typically, cash advances may require a record of the business’ credit card purchases.
However, many small business owners who show positive cash flow or have been open for over three months will see an easy approval.
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 instance, if your business’ cash advance was $1,000 (1.1 factor), your business owes $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. Cash advances are typically rated on the amount paid, therefore business owners don’t often have to worry about issues such as 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. Based in New Jersey, we provide merchant cash advances to areas including Chicago, Los Angeles, New York, Miami, Bergen County, Union County, and all across the United States.
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.
Like you, JSV Capital is a small business, and we take pride in helping our neighbors secure the financing they need to grow and achieve success. Contact a reputable loan consultant at JSV Capital about how we can help you and your business get funding today.
Apply For Merchant Cash Advance Financing
No cost to apply. Applying will not impact your credit score.