Merchant Cash Advance
A merchant cash advance, also known as a business cash advance, is financing based on your future credit card receivables.
How Much Could I Qualify For?
Merchant Cash Advance Benefits:
|Quick access to capital|
|No credit impact to get a quote|
|Eliminate short term financial needs|
|Flexible payments based on daily sales instead of a fixed amount|
Use Funds To:
|Buy new equipment|
|Manage short term capital needs|
What’s the process?
Apply online or speak with a dedicated business advisor.
Connect Rapid Finance with your credit card processor.
Have funds in as fast as 1 day.
A merchant cash advance, also known as a business cash advance, is a simple and flexible financing solution based on your future credit card sales. You receive a cash advance and then pay it back with a set percentage of your credit card receivables until the advance is paid in full.
Practically speaking, your merchant cash advance financing is paid through a percentage of your credit card receivables. There is no set payment term as it all depends on your daily credit card sales. We only get paid when you make a sale, so payments are flexible and at the pace of your business.
Documents needed to apply
You only need FOUR things to get started:
Government-issued photo ID (Drivers License).
Voided check from your business checking account.
Last three statements from your business bank account.
Last three credit card processing statements.
A merchant cash advance is based on your credit card receiveables, so the main way to qualify is to have a steady flow of credit card sales. There are other criteria that you may need to meet if you want to take advantage of a merchant cash advance. For example, if your business is less than a year old, it may be harder for you to qualify for a merchant cash advance. Of course, it is also essential that you already have the capability to process credit card payments, and that these play a significant role in your business.
Just like any other means of financing, there are a couple of questions to consider before applying for a merchant cash advance:
- How does seasonality affect your sales volume?
- What is your percentage of credit card sales?
Knowing the answers to these questions will help our business advisors to better serve your unique funding needs.
Merchant Cash Advance Features*
A Rapid Finance merchant cash advance gets you the small business capital you need to grow your business. It’s a simple financing solution based on future credit card sales. Reap the benefits of our flexible and affordable payments, as this type of merchant financing is paid on a daily basis as a percentage of your credit card sales. This is a great solution for businesses with fluctuating or seasonal sales or those trying out new products or marketing opportunities. Payments can be made daily or weekly.
Flexible and variable payment periods.
Easy, fast application.
Because of the way that a merchant cash advance works, it makes sense for small and growing businesses that rely heavily on credit card sales. If you have strong, regular sales then you can be confident that you’ll be able to pay back the advance without your business taking the hit.
A merchant cash advance is also a good option if your sales are going strong but you don’t have a great credit history behind you. While you might struggle to get approval for other types of business financing, a cash advance for business might be just the right fit.
For the right business and the right circumstance, a merchant cash advance offers certain advantages over many other financing solutions:
- Fast approval
- Bad credit doesn’t have to hold you back
- Flexible and affordable payments, rather than a fixed amount
- Lower risk than a traditional loan because payments are made based on your credit card sales.
- No need to manually keep on top of your payments or face fees for late payments
- You can use your cash advance for a wide range of business purposes, from buying new equipment to bridging payroll.
It is important to be clued up about how a merchant cash advance stacks up against other types of financing, so be sure to speak to one of our business advisors to find out whether it’s the right choice for you.
Other Financing Options*
*Rapid Finance markets all products listed on this website. Rapid Finance or RapidAdvance is the direct provider of capital for certain Merchant Cash Advances, Healthcare Cash Advances and Term Loans. However, these products as well as SBA Loans, Lines of Credit, Factoring, Asset Based Loans, Commercial Real Estate Loans and Business Credit Cards may be provided by an unaffiliated third-party. Products and amounts offered may vary by state.