Merchant cash advance
Money against the sales already coming in
We buy a stated dollar amount of the receivables your business has not collected yet, and pay you a smaller amount for them today. From then on an agreed share of each day’s settlements comes to us until that stated amount has been delivered. It is a purchase, not a loan, and it is the only thing we do.
- $7,500 – $750,000Advance amount
- 3 – 15 months, set by sales volumeTerm
- Approved in as little as 2 hours, funded in 24 to 48 hoursFunding speed
At a glance
The terms, before you ask for them
- Advance amount
- $7,500 – $750,000
- Remittance
- A fixed share of daily card settlements or bank deposits
- Expected term
- 3 – 15 months, moving with sales volume
- Approval
- As little as 2 hours on a complete file
- Funding
- 24 to 48 hours after the agreement is signed
- Pricing
- One factor rate, settled before any money moves
The mechanics
What you are actually agreeing to
It is a purchase, not a loan
Nothing is borrowed and nothing accrues. We agree a dollar figure of receivables your business has yet to collect, buy that figure from you at a discount, and wire you the discounted amount. Because no principal is lent, there is no interest rate, no annual percentage rate and no maturity date anywhere in the agreement.
The cost is one number, fixed at signing
Instead of a rate that compounds, the price of an advance is a factor rate: a single multiplier applied once. Multiply the amount advanced by the factor rate and you have the whole obligation, in dollars, before you sign. It does not grow if the term runs long and it does not shrink if the term runs short.
Collection follows the takings
An agreed percentage of each day’s card settlements, or of the deposits into your business account, comes to us automatically. Busy days send more and quiet days send less, which is the point of the structure. When the purchased amount has been delivered, collection stops on its own.
Approval turns on cash flow first
We read bank statements before anything else: the size of the deposits, how regularly they arrive, and what the account looks like between them. Credit is reviewed and there is a published floor, but consistency in the deposits is what carries the decision.
What it costs
A factor rate, worked through in dollars
A factor rate is a single multiplier applied once to the amount advanced, and it settles the entire cost at signing. An interest rate behaves differently — it accrues against a balance over time, so the longer the money is outstanding the more it costs, whereas a factor rate neither compounds nor grows.
A worked example
- Amount advanced
- $75,000
- Factor rate
- 1.32
- Total to be delivered
- $99,000
- Remittance
- 11% of daily card settlements
- Estimated term
- About 9 months at roughly $100,000 a month in card volume
These figures are an illustration of how the arithmetic works, not an offer; your advance amount, factor rate, remittance percentage and term are set after we have reviewed your statements.
Where it earns its keep
What business owners use an advance for
- The cost is a single factor rate, and it produces one total that never changes.
- Remittance is a share of what you take, so a thin Tuesday sends less than a full Saturday.
- Nothing is pledged. What we buy is the receivable itself.
- There is no payment date in the agreement, which means there is no payment date to miss.
- Funds are yours to deploy as the business requires; we do not police the use.
- Accounts that have delivered most of the purchased amount cleanly are reviewed for a renewal.
Straight answer
When this is the right tool — and when it is not
When an advance is the right tool
- Inventory or materials you will convert into sales inside the term of the advance.
- A repair or replacement that is currently costing you revenue every day it waits.
- A supplier discount, bulk buy or short-notice contract worth more than the cost of the money.
- Payroll, rent and fixed costs carried through a seasonal dip you can see coming and see ending.
When it is not, and we will say so
- A capital project that pays back over three or five years. This money is priced and structured for months, and stretching it over that horizon is an expensive mistake.
- A business that collects on thirty-day invoices rather than daily settlements. Without daily card volume or daily deposits there is nothing for the remittance to come out of.
- A shortfall that is structural rather than temporary. An advance moves the date of the problem; it does not solve the problem, and it makes the arithmetic harder when it arrives.
- Any situation where a bank, an SBA lender or a credit union will genuinely approve you in the time you have. That capital costs a fraction of this and you should take it.
Who qualifies
The five published numbers
- Time in business
- 6 monthsMeasured from the date the entity started trading, not the date it was registered.
- Monthly revenue
- $15,000Gross deposits into the business account. Steady months read better than one exceptional one.
- Business bank account
- RequiredOpen, active and in the legal name of the business. Personal accounts cannot be used.
- Personal credit score
- 500 or aboveWe do review credit and this floor is real. Above it, deposit consistency is what the decision turns on.
- Location
- United StatesThe business must be based and trading in the US. We fund in all fifty states.
Meeting all five does not by itself mean an offer — every file is underwritten on its own facts, and we decline. It does mean the conversation is worth having. We do not fund gambling, adult entertainment, firearms, cannabis, and anything unlawful.
Questions
About the advance
What is a merchant cash advance, and is it a loan?
It is not a loan, and the distinction is legal rather than cosmetic. A loan lends you principal and charges you for the time you hold it. An advance is a completed sale: you sell us a stated dollar amount of receivables you have not collected yet, we pay you less than that amount today, and we collect the stated amount out of your settlements as they arrive. There is no interest rate, no annual percentage rate and no maturity date, because none of those concepts apply to a purchase.
How does a factor rate work?
It is one multiplier, applied once. On $75,000 at a factor rate of 1.32 the total we collect is $99,000, and that $24,000 difference is the entire cost of the money. It does not compound, it does not accrue day by day, and it does not change if the term runs longer than expected. Everything you owe is knowable before you sign, in dollars.
Is there a minimum credit score, and how much does credit matter?
Yes, there is a floor: a personal credit score of 500 or above. Below that we cannot fund, and we would rather tell you in the first minute than after you have sent statements. Above it, credit is one input among several and rarely the one that decides the file. What decides it is the bank account — how much is coming in, how regularly, and what the balance looks like in the days between deposits. We do pull credit as part of underwriting, so nobody should be surprised by it.
What happens in a month when sales are down?
Less is collected, automatically, because the remittance is a percentage rather than a fixed figure. Nothing is missed, nothing is late, and the term simply extends until the purchased amount has been delivered. That is the structural advantage of an advance over a fixed monthly payment, and it is the main reason seasonal businesses use one. If trading falls off a cliff rather than dipping, call us — see the last question.
I already have an advance out. Can you still fund me?
Possibly, and we will look at it, but only with full disclosure. Tell us who holds the existing position, the balance and the daily remittance before we price anything. We will take a second position where the deposits genuinely support two, and in some cases the better answer is consolidating what is outstanding into a single position rather than stacking a third one on top. What we will not do is fund a file where an open advance was left off the application; that is where merchants get themselves into real trouble.
Can I renew, and can I pay it off early?
Most accounts become eligible for a renewal once roughly two thirds of the purchased amount has been delivered and remittance has run clean. Eligibility means we will look again with current statements, not that more capital is automatic. On early payoff: the purchased amount is a fixed figure, so delivering it faster shortens the term without reducing the total. If you want a discounted early-delivery figure, negotiate it into the agreement before signing — it cannot be added afterwards.