If your business processes a lot of credit cards, you can sell your future credit card receipts for cash today. This process is called merchant cash advance. It is not a loan. It’s also sometimes called credit card factoring or selling credit card receivables. If your company needs money today to increase marketing, buy equipment, renovate your office or retail space, pay taxes, make payroll, or for any other reason, merchant cash advance might be the ideal product for you.
Your personal and business credit don’t matter a whole lot with this type of financial product. They aren’t insignificant, but you don’t need be a spotless 800 middle FICO score. And, there isn’t a huge heap of paperwork. We are concerned with seeing the monthly credit card receipts your business collects. Generally, we will be looking at the last three to six months. Prior bankruptcies and liens are generally not a problem, although if they are current or recent they can be an issue. We provide merchant cash advance programs to companies in all sorts of industries – bar and restaurant, retail, ecommerce, and miscellaneous service providers.
How merchant cash advance works
When we buy your credit card receivables, we will give you money now. We agree to a repayment schedule that works for your particular situation and the program we put together for you. Repayment terms tend to be relatively short – a few months or a year or so. We can always talk about longer repayment terms if that’s what you need. You will repay the advanced amount with flexible payments based on your future receipts rather than being saddled with high, fixed monthly repayments.
Why do companies sell their credit card receivables?
Merchant cash advance is quick and easy! Paper work is light and you can have money in a few days. Growing companies that have good credit card receipts and need money to take advantage of attractive opportunities or just to manage payroll and other expenses, use this financial product regularly. Underwriting is very fast and you don’t need any collateral. And, because you are selling receivables rather than taking a loan, using merchant cash advance does not create debt on your balance sheet.
How much does it cost?
Merchant cash advance is not inexpensive and we definitely have other financial programs and loan products that are more attractive if the only thing that matters to you is the cost of the capital. But, for some businesses it’s the only solution and for other business it’s the perfect solution from a time and flexibility standpoint. Because the actual cost of this program varies tremendously from company to company, give us a call and we can talk specifics with you.
Why work with us
Startup Capital & Expansion Funding is a diversified business financial services company. We buy receivables, lend, and invest our own money. Sometimes we partner up with other factoring companies or lenders. Our goal is always to locate the best deal your business qualifies for and that meets your needs. We are not a massive company, so you won’t wait around for weeks trying to get an answer on your application. And, we are not a regulated bank, so we have a whole lot more flexibility than your local bank. We move fast and we know business finance. As you grow and evolve as a business, we have a wide range of loans and other financial programs to get you the money you need when you need it.