Merchant Cash Advances

Working Capital For Those Accepting Credit Cards

Merchant cash advances are based on businesses that are currently operating and who are accepting credit cards as primary form of payment. Because that is the only thing that a merchant cash advance replies upon…your processing statements.

Many business owners take out this type of financing who are low on cash flow and are going to be using this to finance some type of project. Merchant cash advances allow the business owner to access cash from their business without personal credit  requirements. Depending on the credit and the type of credit presented with the merchant account and bank statements, our lenders will provide you the lowest rates available. However, all fallacies aside, merchant cash advances are the most expensive way to loan money.


  • New businesses qualify
  • Approval not based on credit score
  • No fixed Payment schedule
  • Not based on interest
  • No collateral nessasary
  • No upfront fees
  • No closing costs
  • Automated Payback process through a percentage of credit card sales daily
  • Occasionally merchant must switch processing centers to go through the MCA company


  • Application
  • 3 months business bank deposits
  • 3 months processing statements
  • Photo ID
  • Premise Lease
  • Business license
  • Only factors in Visa and Mastercard


  • Roughly 80% of the credit card sales will be advances
  • Rates are rough… average about 35% but could be as high as 60% APR

We would much rather (if possible) use a loan based on average monthly deposits or an unsecured line of credit for the business owner if possible. Simply because the rates are brutal. But that is the nature of this beast. Again, all financing comes down to is will you ROI on your investment. Our job is to present the business owner with options and allow the business owner to make a business decision. However, if we must get a merchant advance we typically do something called: Transfer Account Financing.

Transfer Account Financing

Transfer account financing works when merchant processing volume is at a good level but the business bank statements are a little shaky. Meaning the business is generating revenue but the business is struggling to keep cask in the bank account.

merchant cash advance

In this type of financing the funds are distributed into the business bank account and a “lock box” account. This is for a higher lending risk. Since the business has low average monthly revenue ending balances, the lender requires a certain percentage of funds allocated to a lock box or reserve account. The reserve account usually collects it’s percentage for a total of 5 days before funds are dispersed. This insures even if the business owner has a few down days, the financing company will receive their daily payments. Again we use this for businesses that are a little bit of a higher risk but who are still regenerating monthly merchant processing amounts that are acceptable. The fees on this type of loan are lower than that of a merchant advance and that’s typically why we like to have an alternative for our business owners.