Merchant Cash Advance
A merchant cash advance for a small business opens the door to new growth opportunities. Merchant cash advances allow you to buy more inventory, launch product lines, and expand to new markets. A business cash advance also makes it easier to get more materials for an unexpected opportunity or deal with unforeseen expenses.
Quick facts and requirements
Find out about our Merchant Cash Advance options today
3mo to 24mo
Starting at 1.5% per month
Time to Funds
Higher frequency payments
Increased finance costs
Merchant Cash Advance FAQs
How does a merchant cash advance work?
A cash advance means you receive funding upfront, and the lending entity gets the purchase of future receivables. The advance amount may be anywhere from $5,000-$1,000,000 and can carry a reasonable factor rate. Cash advance companies like AMP Advance help fund a business when it needs money, and allows them to repay the amount over the course of three to 24 months. The initial funding may be available in as little as 24 hours, so businesses can quickly adapt to their changing needs. The repayment may occur on a daily, weekly, or monthly basis.
What are the benefits of a merchant cash advance?
- They are one of the easiest types of financing to qualify for. You can get a merchant cash advance with any credit score, so this is a good option for businesses that have been denied for other loans. You can also get a merchant cash advance with bad credit.
- You can use the funds however you want. Merchant cash advance companies understand that you know your business better than anyone, so they let you decide how to use your money. Other types of loans might restrict how you can use the funding.
- You do not need to use collateral to get a cash advance. Other loan types require that you put up some collateral. This could be your retirement savings, your personal property, or even your business itself. Later, banks can claim that they’re entitled to your property if there is any problem with the loan. With cash advances, there are no such worries.
Is there different types of merchant cash advance?
There are a couple of common types of cash advances, which gives business owners a lot more flexibility. Businesses can choose the kind of advance that best suits their needs. The two main types are as follows:
- ACH Advance – An ACH is similar to a merchant cash advance, and begins with the cash advance company analyzing the past four to six months of banking statements from your business. Depending on this analysis, the company will decide what kind of holdback is appropriate. The holdback is the rate of repayment for the advance. Once a client agrees to the terms and authorizes the advance, the repayment is set to occur by automatic withdrawal. Some ACH advances can be approved in less than one day. The holdback is collected at a flat rate.
- Credit Card Split – Holdback is fixed % but only based off of credit card sales. Benefits are no fixed payments during bad months as collection is reduced with ebb and flow of a business’s normal trends.