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$15,000
$30,000

What is merchant cash advance loan

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Merchant cash advance loan is an innovative alternative to the traditional bank loan tends to have easy eligibility criteria so most small businesses shouldn’t have a problem qualifying.

Instead of looking into collateral or other securities, merchant cash advance 360 looks at daily sales receipts to determine if a business can pay back the advance on time. As a result, rates on an MCA can be a little higher than other financing options

If you have little or no collateral, limited business history, or a low credit rating then merchant cash advance loan could be a solution to your financing problems.

A merchant cash advance (MCA) was originally structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales.

Wikipedia

A merchant cash advance is not technically a loan. With an MCA loans, a financing company advances you cash in exchange for a percentage of your daily credit card and debit card sales, plus a fee.

Fundera, INC

A merchant cash advance (MCA) isn’t really a loan, but rather a cash advance based upon the credit card sales deposited in a business’ merchant account. A business owner can apply for an MCA and have funds deposited into a business checking account fairly quickly

On Deck, INC

It’s an option to get cash immediately for your business, in exchange for funds deducted directly from your bank account in the future.

How merchant cash advance loan work?

A merchant cash advance loan isn’t a loan, but rather a cash advance based upon the future business sales deposited in a business’ merchant account.

For businesses that make a big portion of their revenue through credit card payments like a restaurant or a retail store, they can use a merchant cash advance loan like a short-term financing tool.

Documents required to apply for merchant cash advance loan

Merchant cash advance loans are paid back with your daily credit/debit card sales, so we will look at your bank statements to make sure you have enough volume coming into the business.

  • Bank Statements (recent three months)

  • Driver’s License

  • Voided Business Check

Calculate the cost of a merchant cash advance loan

Merchant cash advances loan can get a little expensive for a few different reasons. The most important reason is that merchant cash advances loan tend to work for riskier borrowers those with lower credit scores or those with newer businesses. And riskier lending options correlate with a little higher fee.

Merchant cash advance 360 aligns their fees with a factor rate rather than an interest rate. Factor rate ranging from 1.20 to 1.25. A factor rate is what you multiply your loan amount by to figure out the total you’ll owe.

$50,000

Loan Fees: $11,000

Merchant cash advance loan example

Let’s say you’re advanced $20K with a factor rate of 1.18.

$20K multiplied by 1.18 (factor rate) is $23,600, which is what you’ll need to repay with your daily repayments by daily credit/debit card or bank transactions.

At first glimpse, that might seem like you’re just paying an 18% interest rate but looks can be misleading.

You have to understand the true cost of the merchant cash advance by its APR.

If your lender will be taking 15% of your daily credit card sales and you’re estimating $25K a month in credit card transactions, you’d repay that advance in 189 days with daily payments of $125.

$25,000 / 30 days = $833 Your Daily Income
$833 * 15% APR = $125 Daily deduction on your income
$125 * 189 days = 189 Days

Repayment options for merchant cash advance loan

Merchant cash advance loan repayments can be categorized in two ways.

You can get an upfront sum of cash and during the length of your payback period, a small percentage of your daily credit/debit card sales is withheld until the advance is paid in full.

Or you can make one fixed payment every month from your bank account over a set repayment period.

How to start with merchant cash advance loan

To get started, we’ll ask you to complete our one-page application, submit six months of credit card statements, and six months of bank statements.

We require that your business be up-and-running for at least 6 months before receiving a merchant cash advance. Being open for 6 months will likely increase the success you have with our merchant cash advance loan product.

Another requirement we have is that your business make $5,000 in sales each month. If you generate less than $5,000 in sales, it may be challenging for you to remit your merchant cash advance.

Also, any business we work with can’t have any open bankruptcies or dismissed bankruptcies within the past year.

Online approval for merchant cash advance loan

Our application process is easy, free and won’t affect your FICO ® score. Apply now, and get an instant decision on your loan.

Loan Application

To qualify, you should be in business for at least six months & have a minimum of $50,000 in annual revenue.

$50,000
3 Years
$30,000
1 Year

Who can apply for merchant cash advance loan

A merchant cash advance loan could be a reasonable option for someone who has an emergency need for money and limited resources for getting it, most importantly when that person has a clear and reasonable plan for paying back the money in a short period.

It is, for example, a better option than a bank line of credit, due to the exorbitant triple-digit interest rates those loans typically carry and the greater payoff flexibility that comes with credit card debt.

    • Transportation Business

    • Includes various types of businesses from car washes to towing services, bus and limousine fleets to gas stations, taxi and transportation services to couriers and mobile oil change companies, the transportation industry is one that has no pun intended. Within these parts are ample opportunities for business owners to succeed.
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    • Trucking Business Loan

    • Shipping & Logistics is a $700 billion dollar industry annually. Commercial trucks and trained drivers are a financially intensive venture. We offer financial resources to buy new vehicles and logistics tools, maintain your fleet, and hire more trained drivers.
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    • Retail Business Loan

    • Retailers get financing to grow their business or to purchase inventory and ramp up for busy times of the year. Retail business loans come in various forms, such as a short-term business loan used to purchase needed inventory to prepare for the busy season or SBA retail funding to buy real estate and expand.
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    • Barber Shop Loan

    • A barber shop needs a lot more than scissors to make money. A professional look, marketing materials, barbers chairs and more are needed to help grow an efficient business in this industry. With the barber shop industry accounting for $1.8 billion dollars in annual revenue, there is a lot of money to be made out there by the 220,000 barbers that are licensed in the United States.
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    • Healthcare Business Loan

    • Equipment requirements and training requirements for medical offices eat up a lot of capital. The maintenance of that equipment is expensive as well. Those bills will keep coming in even when your office is slow. A healthcare business loan from our network of alternative lenders help with cash flow and allow things to run smoothly.
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Top 5 merchant cash advance lenders in United States

    • United Capital Source
    • At United Capital Source, you’ll receive personal service and customized options to help you reach your business goals. Learn more about our small business lending solutions, including small business loans and equipment financing.
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    • Merchant Cash Advance 360
    • Merchant cash advances 360 are more affordable than traditional merchant cash advances because they work with select borrowers who already use their platform. MCA 360 provides between $500 and $250,000 in capital to business owners. There aren’t any hard and fast eligibility requirements, but MCA360 looks at your processing volume and account history. If you show a steady history of credit and debit card sales, you could qualify for an advance.
    • Lean More
    • National Funding
    • Another merchant cash advance company to consider is National Funding. They offer advances up to $250,000 with automatic daily repayments. They’re one of the fastest merchant cash advance companies out there, with the ability to offer same-day approvals and get the money in your bank account in as few as 24 hours.
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    • Fundbox
    • Fundbox specializes in fast, easy funding for small businesses. Their average customer earns over $250,000 per year and has been operating for at least one year. To apply for an advance, you connect either your accounting software or your business bank account so that Fundbox gets an idea of your business’s financial situation.
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    • Bluevine
    • Whilst Bluevine doesn’t offer merchant cash advance, they do offer a Term Loans, BLOCs, and Invoice Factoring. Bluevine’s loan ranges are from $5,000 to $5,000,000, with the lowest rates starting at 4.8% APR and approvals as fast as 5 minutes.
    • Lean More

Why choose merchant cash advance 360

The loan fees can sometimes be higher but open to businesses with lower credit and provide a level of ease, convenience, and service that many traditional lenders or banks can’t match.

Merchant cash advance 360 is a nationally recognized leader in the financing industry for providing the best business lending solutions available to small and mid-sized businesses.

We leverage our network of 4,000 competing commercial lenders to provide your business with the largest selection of commercial financing options.

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