A merchant cash advance is a way for a business to borrow a lump sum and pay it back over time using a percentage of future sales.
A merchant cash advance is much more flexible than other forms of small business loans.
This type of small business loan is a fast and easy way to get a cash injection by applying for a lump sum to then be paid back. The repayments are calculated based on a percentage of the sales.
A merchant cash advance doesn’t require to secure the loan against an asset. No collateral means that the process to get the merchant cash advance approved is quick and easy. Furthermore, no high credit score is required.
For instance, a customer buys your product for $5,000. However, whilst they agreed that the invoice would be paid within 30 days, you have urgent fees, wages and expenses to pay tomorrow. Invoices that you are waiting to be paid for can be bought by a factoring company at a discounted price for immediate cash. For instance, if it was discounted, the business will receive 80% of the invoice value. In this circumstance, the business would receive $4,000.
Compared to other small business loans, a merchant cash advance follows a more straightforward application and approval process. The documentation required for the application is limited, and also a less weight is given to the credit score. The critical lending criteria for this type of loan is the business cash flow as the repayments are based on the monthly Eftpos transactions. In some cases, there is no need to present copies of financial statements, tax returns or other business documents.
A merchant cash advance is a more expensive solution compared to other small business loans available in the market. Check with us if your forecasted cash-flow will be enough to sustain the cost of this type of business loan.
At Every Business Loan, we have developed a one to one approach that allows us in 99% of the cases to get the money in our clients’ bank account within 1 day from the application. With our network of 50+ business loan providers, we open credit opportunities for your business.
We help you through the process, and we put you in contact with the lender that offers the type and size of business loan that meet your needs. Our partners assist eligible small businesses with a merchant cash advance.
Every Business Loan is the preferred and trusted finance broker for hundreds of small and medium local businesses in Australia. It all starts with an enquiry. Call us 1300 920 905 or click on “get started now” and we call you back to see if you qualify for a merchant cash advance.
Every Business Loan is a leading and trusted finance broker that makes the process of business funding fast and easy for all our clients throughout Australia.
Address:
Level 32 ,101 Miller Street,
North Sydney NSW 2060
Phone: 02 7208 8220