Frequently Asked Questions (FAQs)

How does the business cash advance program work?

A business cash advance is typically structured as a purchase of future credit card sales. What happens is a finance company will make an estimate of how the credit card sales of the small business will trend in the coming months, based on information you provide in your application. Please visit our discussion about steps required in the business cash advance program.

How does the small business loan (fixed-term business loan) program work?

The loan is sized based on the cash flow of the business. Credit ratings usually have to be higher than a business cash advance is required to have. Contractually, this is a loan to the business with a personal guarantee by one or more owners. Payments are made on a daily basis, typically on weekdays only, and do not require a change in credit card processing.

What is the maximum amount I can get using a business cash advance?

For a business cash advance, the program you qualify for depends a great deal on two major factors, your merchant credit card volume and your overall sales. Standard sized cash advances typically range 80% to 150% and sometimes 200% of your monthly credit card volume. If you have credit card volume below $5,000 to $7,500 (depending on your industry type), but above $3,500, you may qualify for a so-called starter advance. Please bear in mind two things. First, we are concerned about your company's cash flow, so we encourage companies we work with to take the lowest amount possible to accomplish their goals. Second, you can stagger your growth projects and take out a greater number of cash advances at smaller amounts each time. Re-applying is a faster process than the first time.

What are your repayment options for a business cash advance?

Your company can pay back using its credit card volume and/or its check volume. If your company is a restaurant, for instance, credit card is likely much larger in size than check volume. On the other hand, a medical practice may have much larger check volume and would use checks for repaying the business cash advance. A business cash advance can also be structured using both credit card and checks for repayment, which may have the effect of increasing the amount qualified for.

How much will you deduct monthly using a business cash advance?

The amount that is deducted is not fixed. It varies with your monthly credit card volume because a business cash advance is typically structured as a purchase of a fraction of your future credit card sales. This fraction can vary from 5% to as high as 40%, though most typically 10-20% is used. The larger the percentage that is purchased, all other factors being equal, the larger the size of the cash advance.

How Long Does Approval Take?

For a business cash advance, we can give you a written quote typically in 24 hours after we receive your completed application, and it will involve a very modest amount of your time. Once approved, you can expect a wire transfer to your business bank account typically within 5 to 7 days. Please visit the description our our application process for the next steps. For a fixed-term business loan, the pre-qualification process can take from 5 minutes to one day, and a contract can be ready once you send in business statements usually within one day.

What program do I qualify for?

We have many programs for which your company may qualify. These include fixed-term business loans, standard business cash advances, starter business cash advances, new restaurant cash advances, check based cash advances, restaurant changing owners cash advances. Your industry, monthly sales by credit card and check, company's tenure, ongoing lease committments, etc, will factor into which program suits the company best. We list the most common industry types that qualify for standard business advances, but there are often exceptions, so please contact us or apply online to discuss your company's particulars, as we frequently find ways to get you qualified.

What are your rates?

Premium. If you have FICO 620 or more, and have high bank account balances and sufficient credit card volume (eg. cash flow) of $10K/month or more, a 6 month premium advance would have a 1.19 factor, subject to some other factors and review. This means if you get $10,000, you pay back $11,900. These are fixed payments. Typically there is a personal guarantee.

Standard. If you have a FICO >550 and no NSFs in bank accounts, but lower monthly credit card volume, a 6 month standard advance would have 1.35 to 1.39 factor, subject to some other factors and review. This means if you get $10,000, you pay back $13,500 to $13,800 through your credit card receipts. These are variable payments. Typically there is a no personal guarantee.

Starter. If FICO is below 550 or 500, but credit card volume is >$4,500 or $3,500, then a 1-2 month payback has a 1.48 to 1.49 factor, subject to some other factors and review. This means if you get $2,500, you'd pay back $3,700 to $3,725. These are variable payments. Typically there is a personal guarantee



  
 
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New Merchant Cash Advance Program

A restaurant that is planning to open or that has been open for less than a month may qualify for this cash advance program. You must demonstrate a plan to reach $25,000 per month in the future. Please contact us at 1-877-221-3003 for more information.