(How it works)
From one form to funded.
Four steps, and funding can arrive the same day you are approved. Below: the steps, how an advance is repaid, and the questions owners ask before signing.
(Four steps)
Start with step one- (01)Apply
Fill in one form: the business, what you need and what it is for.
- (02)Review
An advance is weighed mostly on how the business sells, more than on your personal credit score.
- (03)Offer
You see the amount, the total you repay and how it is collected. Nothing is taken until you sign.
- (04)Funded
Money can reach your business account the same day you are approved.
(How repayment works)
Repaid from
what you sell.
Example: a diner takes $20,000 now and agrees to repay $25,000 from future card sales, at 15% of each day's card sales. Here is one week.
Left to repayBefore Monday
$25,000.00
Paid this week$0.00
Worked example after Wikipedia, "Merchant cash advance": $20,000 now for $25,000 of future card sales. Shares of 15 to 35% are typical; your offer sets your own amount, cost and share.
No. Legally it is a purchase of part of your future card sales, not a loan. That is also why it usually costs more than a bank loan, so compare the total you repay, not only the amount you receive.
You pay less. The payment is a share of that day's card sales, so a quiet Tuesday takes a smaller amount than a busy Saturday.
From $5,000 to $1,000,000. The amount in your offer depends mostly on how much the business sells.
Funding can reach your business account the same day you are approved.
It counts for less than it would with a bank loan. Advances are weighed mostly on how the business is selling.
Advances are usually repaid in under 24 months. Your offer shows the share or payment and the total before you sign. At the pace of the example week, the $25,000 would be collected in about eight weeks.
What the business needs it for: payroll, stock, repairs, equipment, or paying off other balances.
Yes. That is what debt consolidation is for: one new balance pays off the others, and you keep track of one payment.