What is a Merchant Cash Advance?


A Merchant Cash Advance ACH Advance: The process of securing an ACH Advance begins with an analysis of the most recent 4-6 months of business banking statements in order to determine the holdback percentage of the business. Holdback percentage is the debt to income ratio. These types of advances are quick to fund sometimes even within 24 hours. Payments are set up on an automatic withdrawal once the client agrees to authorize the purchase of their future receivables. MCA Advance: This type of advance is completed using the aging reports of a business' revenue. The repayment on the advance is withdrawn daily by withholding a percentage of daily deposits based off of the holdback percentage. As sales increase, the percentage of repayment increases and as sales decrease the percentage of repayment decreases. This product works with the ebbs and flow of your business allowing you to never get into a large debt situation. Merchant cash advances are generally completed within three to eighteen months and these types of financing options are non-tradition, offered by alternative lenders.

Qualifying for a Merchant Cash Advance

This type of financing is innovative, catered to each client's needs, and extremely easy to qualify for.  As you your due diligence consider factors such as reputation, ratings, and client feedback when seeking alternative lenders. AMP Advance will match you with the best products for your business and then walk you through the entire process step-by-step. Visit our TrustPilot page to see what our clients think!

What Types of Business is a Merchant Cash Advance for?

A cash advance allows a business to receive funds with the agreement to have their future receivables purchased. Prequalifying for a merchant cash advance is lenient due to the advance's nature of being unrestricted and not requiring collateral. Any type of business seeking capital can be approved for this product.

What are the Minimum Requirements?

Merchant cash advances are not credit driven products. A merchant cash advance is cash flow based so financial documents are not required. Using the merchant's business banking statements we can assess overall cash flow and quickly provide an offer once we have determined sufficient cash flow being evident.

How Much Will a Cash Advance Cost?

Merchant cash advances are priced using a factor rate and not an interest rate. Traditional small business loans have lower interest rates compared to non-traditional, alternative, lending means. This factor rate is higher than normal rates due to the increased risk involved with giving a small business a cash advance. Before getting started, truly know how much capital you can successfully put to use right away, find a trustworthy alternative lender, and negotiate the lowest fees possible. AMP Advance walks you through this process step-by-step to ensure you are getting the best business option for your situation.

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