What is a Merchant Cash Advance and How Can it Help My Business?

What types of businesses are preferred? Mostretail businesses who process several credit card transactions per dayare preferred. Restaurants are highly desired for this program due tothe number of smaller dollar amount transactions that are processed ona daily basis. Who Qualifies? A businesswho has been in business for at least 4 months under the sameownership and has accepted credit cards for at least 4 months are 2 ofthe bigger requirements when applying for a Merchant Cash Advance. What Can I Expect To Do When Applying? Theapplication process is actually quite simple compared to the normalbusiness financing you may be used to. When applying, you willgenerally submit a credit application and the most recent 4 months (allpages) of your merchant statements (credit card statements). The bankwill use this information to check your credit and to see what you areaveraging in daily credit card sales. How Much Can I Expect To Qualify For? Whilethis number will vary based on your application and merchantstatements, a good rule of thumb is to plan on qualifying for about125% of your average credit card sales over the most recent 4 months. How Does It Work? Onceyou submit your application, merchant statements and are pre-qualified,you will generally receive an offer letter from the bank within about24 hours. At that time you will know how much you qualify for,how much you will pay back over the term, an estimated time frame topay the Merchant Cash Advance back and the daily percentage rate (cents on the dollar) thatthe bank will keep out of your credit card sales. You will notknow the exact ending date for the program because the bank does notknow what your future credit card sales are going to look like. Anaverage ending date ranges from 6 to 12 months. You pay the bankback when you batch out each day so there are no monthly bills to worryabout. The bank also takes into consideration that you need to keepyour business open so the percentage that they keep out of your dailycredit card sales will be minimal. What Are Some Automatic Disqualifications For This Program? *Having a recent bankruptcy or foreclosure (within the past year) *Currently behind on your mortgage payments *Tax liens greater than $175,000

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