Frequently asked questions about merchant cash advances

How do you qualify for a merchant cash advance?

Approval for a merchant cash advance is based on monthly credit and debit card sales. We will want to validate how much cash flows through your merchant account. So if you have less-than-perfect credit, little to no tangible collateral, or a limited business history, don’t sweat it too much as long as your business is earning profits.

What are the pros and cons to merchant cash advances?

Just like every business loan, there are advantages and disadvantages of merchant cash advances. Here are some pros and cons:

Pros

Fast approval and funding process:

Merchant cash advances are stellar for companies who need immediate capital. In fact, with good lenders you can get a decision within hours after sending in the required documentation. After approval, the lender will deliver funds in just a few hours or in rare occasion days. This can be especially beneficial for companies lacking adequate cash flow or companies that are seasonal.

No impact on credit:

Securing a merchant cash advance doesn’t require a hard credit check. The provider typically just wants to see a certain amount of cash flow.

No collateral requirement:

In the event the merchant’s business fails and full payment for the advance is not made, the owner’s assets will never be at risk.

 

Cons

Possible higher fees:

While fast cash is every business owner’s dream, it could cost you in the long run. Depending on banking interest rates along with rates of other loan options. A merchant cash advance could be the pricier option.  Much like payday loans, merchant cash advances could have high fees and fast repayment terms. This is why it’s best to have an experience lender and a designated Merchant Advisor. (This section will also depend on your choice of merchant deal)

How long will it take to pay off a merchant cash advance?

On average, businesses must pay back merchant cash advances in eight to nine months. The higher the fixed percentage of your credit card sales, the shorter your repayment time will be.

The takeaway

Money Hawk 4U provides a fool-proof and streamlined system for helping business owners find their perfect financing fit.

No matter what merchant cash advance provider your business ends up choosing, take the time to carefully analyze the different loan options. It’s always best and never hurts to be prepared.

Frequently asked questions about merchant cash advances

How do you qualify for a merchant cash advance?

Approval for a merchant cash advance is based on monthly credit and debit card sales. We will want to validate how much cash flows through your merchant account. So if you have less-than-perfect credit, little to no tangible collateral, or a limited business history, don’t sweat it too much as long as your business is earning profits.

What are the pros and cons to merchant cash advances?

Just like every business loan, there are advantages and disadvantages of merchant cash advances. Here are some pros and cons:

Pros

Fast approval and funding process:

Merchant cash advances are stellar for companies who need immediate capital. In fact, with good lenders you can get a decision within hours after sending in the required documentation. After approval, the lender will deliver funds in just a few hours or in rare occasion days. This can be especially beneficial for companies lacking adequate cash flow or companies that are seasonal.

No impact on credit:

Securing a merchant cash advance doesn’t require a hard credit check. The provider typically just wants to see a certain amount of cash flow.

No collateral requirement:

In the event the merchant’s business fails and full payment for the advance is not made, the owner’s assets will never be at risk.

 

Cons

Possible higher fees:

While fast cash is every business owner’s dream, it could cost you in the long run. Depending on banking interest rates along with rates of other loan options. A merchant cash advance could be the pricier option.  Much like payday loans, merchant cash advances could have high fees and fast repayment terms. This is why it’s best to have an experience lender and a designated Merchant Advisor. (This section will also depend on your choice of merchant deal)

How long will it take to pay off a merchant cash advance?

On average, businesses must pay back merchant cash advances in eight to nine months. The higher the fixed percentage of your credit card sales, the shorter your repayment time will be.

The takeaway

Money Hawk 4U provides a fool-proof and streamlined system for helping business owners find their perfect financing fit.

No matter what merchant cash advance provider your business ends up choosing, take the time to carefully analyze the different loan options. It’s always best and never hurts to be prepared.

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