The Program

In a Business Cash Advance, a Merchant agrees to sell his future credit card receivables at a discounted rate today.  What does this mean practically?  It means that a lender will advance the merchant a lump sum of cash, for a fixed flat rate fee (In cash advance terms this is called the factor, or the cost of the money – not to be confused with interest).  The lender will take a percentage of the Merchant’s Visa/MasterCard sales every time he batches out of his credit card machine, which will usually range between 10%-25%, until the advance is paid back.  The percentage is a fixed percentage but the actual dollar amount paid every month fluctuates as the merchant’s gross Visa/MasterCard sales fluctuate monthly.  This is short term lending, and generally lenders like programs that range between five to nine months as it reduces the risk factor for them.  There is no interest that collects on the program so merchants know exactly how much they are paying for the money from the out start.  There are no hassles of monthly payments or late fees as the lenders are taking their percentage automatically after every batch, until the amount is paid back.  This is an unsecured loan, and there is no collateral or personal guarantor.

To read about the qualification process click here!