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Merchant Cash Advances
BIZ LOANS WILL PROVIDE YOU WITH A LUMP SUM OF CAPITAL IN EXCHANGE FOR A PERCENTAGE OF YOUR BUSINESS'S FUTURE SALES WHEN YOU RECEIVE A MERCHANT CASH ADVANCE.
What is a Merchant Cash Advance?
Biz Loans offers merchant cash advances, wherein we give you a one-time cash advance in return for a share of future sales from your company. This implies that until the quantity of sales we have purchased is received, you will obtain working cash now, and we will earn a portion of your sales.
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Together, you and our fundraising advisors will develop a financing strategy that will help you build your company without using up all of your cash flow. Entrepreneurs that have generated at least $7,500 in sales over the previous three months on average are usually eligible for an MCA equivalent to 70–1200% of capital, ranging from $3,000 to $500,000. There is no set duration, and we provide both fixed and flexible payback schedules.
Merchant cash advance rates
Instead of using a standard interest rate, merchant cash advances use factor rates. Factor rates are straightforward decimal numbers that indicate how much "extra" you will have to pay over the loan's original amount. Based on a risk analysis, your factor rate is assessed. Factor rates typically range from 1.1 to 1.5.
Who Should Apply for a Merchant Cash Advance?
Cash advances from merchants are best for:
Companies in need of quick capital can get MCAs deposited in as short as 24 hours.
Companies that handle a large volume of credit and debit card transactions
B2C companies with less capital requirements
Companies with poorer credit ratings
​Owners of businesses without any assets or collateral, such as real estate
Restaurants, dentist offices, legal offices, medical facilities, pharmacies, petrol stations, and more can all profit from merchant cash advances. Regardless of the sector you work in, our knowledgeable finance Advisors will collaborate closely with you to determine the optimum finance solution that will enable you to meet your objectives without compromising cash flow.
How to Get a Merchant Cash Advance
1
Apply
Collect three months' worth of bank statements and other documentation. Give us secure access to the transactional data from your bank account so we can approve it more quickly.
2
Choose Funding
Within an hour (during regular business hours), a financing advisor will get in touch with you to finish your application and go over your funding alternatives.
3
Get Funded
Your money can be authorized and deposited within 24 hours after you and your funding advisor decide which funding option is best for your company.
4
Set Repayment
Your company's debit and credit card sales on a daily or weekly basis will be automatically subtracted to cover payment. The amount of your payment will depend on your sales.
How to Use a Merchant Cash Advance
The applications of a merchant cash advance are unrestricted. Generally speaking, MCAs work best when they complement growth tactics that boost your income, like:
Grabbing hold of time-sensitive growth opportunities
Increasing the scope of your marketing plan
Buying supplies or raw materials in large quantities
Modernizing machinery or technology
Hiring additional personnel
Putting money into education and training
Merchant Cash Advance Requirements
Generally speaking, only very affluent business owners with real estate and exceptionally high credit ratings are eligible for traditional bank and SBA loans. Biz Loans offers more accommodating approval standards that take into account your company's whole health rather than just your credit score. To be eligible, your company must take credit and debit card payments; collateral is not needed.
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Here are some things we take into account:
Revenue for businesses
Money movement
Payment history of the vendor
Years of operation
Public documentation