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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

Advance Amount

$5,000 – $1,000,000

Repayment

3mo to 24mo

Interest Rate

Starting at 1.5% per month

Time to Funds

24 hours

Payment Frequency

Daily, Weekly, Monthly
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Benefits

Easiest qualifying form of financing
Use of funds are unrestricted
Zero Collateral Required

Drawbacks

Increased interest rates

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 advances 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?
The most significant benefit of a cash advance is that you can get your money exactly when you need it. Beyond that, there are three key advantages to choosing a merchant cash advance:

  1. 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.
  2. 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.
  3. 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:

  1. 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.
  2. 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.
Can I qualify for a merchant cash advance?
This is a non-traditional type of financing which was created as an innovative way to meet business needs. They are relatively easy to qualify for, mainly because you can get a cash advance with bad credit; the unrestricted nature of these advances and the lack of required collateral means that any business can qualify. The critical requirement has to do with a business’ current cash flow. As long as the company is bringing in enough money, advance funding should be available.
How much will a cash advance cost?
Merchant cash advances do not operate based on an interest rate like most loans do. Instead, these advances use a repayment factor rate. This does create a slightly higher repayment rate but provides much more flexibility. Because there is no credit rating or collateral required, these are sometimes risky for the lending company, and the higher rate helps to minimize that risk.
How can I get a merchant cash advance?

Since your repayment is a factor of you much you borrow, it’s important to think about how much of your advance you can use right away. It’s also important to find a trustworthy lender who is willing to negotiate when it comes to fees. AMP Advance can provide multiple options that will cater to your needs and provide the best deal possible. Apply today to see if your small business can qualify.

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