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

Advance Amount

$15,000-1,000,000

Interest Rate

18% – 40%

Repayment

3-24 Months

Payment Frequency

Daily, Weekly, Monthly

Time to Funds

24 hours

Benefits & Drawbacks

Easiest qualifying form of financing
Use of funds are unrestricted
Fits all business types and industries
Zero Collateral Required
Funding all credit scores
Increased closing costs
Increased interest rates

What is a Business Line of Credit

A small business or startup business line of credit is a way for companies to increase their budget quickly to satisfy their growing needs. Loan amounts can vary from $5,000 to $500,000 at an interest rate between 8% and 24%. It normally takes one or two weeks to get access to the funds, and the loan term reaches maturity at one to two years. Borrowed money is repaid monthly.

How Does a 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 $15,000-$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.

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.

What Types of Business is a Merchant Cash Advance for?

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.The line of credit helps save a business money because there are no fixed payments, and all interest is flexible and often based on the market. There is no way for a business to recover the funds it loses by starting a credit card, so the best course of action is to avoid those fees and high rates whenever possible.

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.

The most important factor that helps a small business qualify for a line of credit is its credit score. A small business should have a credit score of 560 or greater to apply for a business line of credit because it can be difficult to qualify with anything less.

A lender may also want to see an active business checking account, and some general financial information. Small business owners should be willing to provide answers about how long they have been operating and what kind of revenue they achieve.

Most lenders will ask general questions about why the business owner needs a line of credit and their plans to use it. A business’ line of credit will depend on multiple factors including its credit score, the amount of credit desired, and current interest rates.

One constant when it comes to business lines of credit is that the best opportunities come from trustworthy and reliable lenders. Amp Advance is a respected source for direct funding based out of Miami. Our reputation and relentless dedication to our business partners has made us leaders for small business financing.

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 is an extremely flexible alternative lender who will cater to your needs and provide the best deal possible. Apply today to see if your small business can qualify.

Charles, Virginia

You guys are doing a great job, keep it up! We went from having 1 physical store and now 6 months later we are up to 3. When they told me they could help increase my business, 10 times over, I was extremely skeptical. 6 months later I can proudly say they do what they say and say what they do. They guided us step by step with no surprises!
AMP Advance
2018-12-02T20:31:29+00:00
You guys are doing a great job, keep it up! We went from having 1 physical store and now 6 months later we are up to 3. When they told me they could help increase my business, 10 times over, I was extremely skeptical. 6 months later I can proudly say they do what they say and say what they do. They guided us step by step with no surprises!

Cynthia, California

Thank you, Amp Advance! I wasn’t approved for traditional financing anywhere. They were extremely professional and helped match me to a lender that gave me the chance to pay off existing debts and have just just one low monthly payment!
AMP Advance
5
2018-12-02T20:38:48+00:00
Thank you, Amp Advance! I wasn’t approved for traditional financing anywhere. They were extremely professional and helped match me to a lender that gave me the chance to pay off existing debts and have just just one low monthly payment!

Carlos, Miami

Even though we have great cash flow, our personal and business credit was poor. Traditionally, because of this I have been turned down everywhere I have gone. AMP Advance guided us on how get financing when we thought there was none! We fixed our credit, built our business credit up and were then approved by our bank! Thanks AMP!
AMP Advance
5
2018-12-02T20:39:54+00:00
Even though we have great cash flow, our personal and business credit was poor. Traditionally, because of this I have been turned down everywhere I have gone. AMP Advance guided us on how get financing when we thought there was none! We fixed our credit, built our business credit up and were then approved by our bank! Thanks AMP!

Dave, Illinois

The process of any type of financing is extremely tedious and time consuming. The team at AMP Advance made the process of financing quick, seamless, and pain free! They matched me with a lender that got funds in my account in a little more than 72 hours too, which was quite to my surprise.
AMP Advance
5
2018-12-02T20:40:38+00:00
The process of any type of financing is extremely tedious and time consuming. The team at AMP Advance made the process of financing quick, seamless, and pain free! They matched me with a lender that got funds in my account in a little more than 72 hours too, which was quite to my surprise.
5
3
AMP Advance

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