Merchant Cash Advances
What is a Merchant Cash Advance?
A merchant cash advance (MCA) provides businesses with immediate capital in exchange for a percentage of future credit card sales or daily bank deposits. Unlike traditional loans, repayment is flexible and tied to your revenue—you pay more when sales are strong and less during slower periods. This makes MCAs ideal for businesses with consistent credit card transactions that need quick access to capital without fixed monthly payments.
Common Uses
Immediate Cash Flow Needs
Cover urgent expenses, payroll, or operational costs during revenue gaps
Inventory Purchases
Stock up quickly for peak seasons or take advantage of supplier discounts
Marketing & Advertising
Fund promotional campaigns to drive sales and customer acquisition
Equipment Repairs
Address unexpected equipment failures or facility maintenance needs
Business Expansion
Open new locations, hire staff, or invest in growth opportunities
Seasonal Fluctuations
Bridge slow seasons while maintaining operations and inventory
Key Benefits
- •Fast Approval & Funding: Get approved in 24-48 hours and receive funds within days
- •Flexible Repayment: Payments adjust based on your daily sales—no fixed monthly obligations
- •No Collateral Required: Secured by future receivables, not business or personal assets
- •Minimal Documentation: Streamlined application with fewer requirements than traditional loans
- •Credit Flexibility: Approval based more on sales volume than credit score
How Merchant Cash Advances Are Evaluated
Merchant cash advances are primarily evaluated based on your business's revenue and credit card processing volume. Key factors include:
- •Monthly Revenue: Consistent monthly sales demonstrate repayment capacity
- •Credit Card Volume: Higher credit card sales support larger advance amounts
- •Time in Business: Minimum 6-12 months of operating history typically required
- •Bank Statements: Recent statements showing consistent deposits and cash flow
- •Industry Type: Retail, restaurants, and service businesses with regular card transactions are ideal
Working Capital Loans
What is a Working Capital Loan?
A working capital loan provides short-term financing to cover day-to-day operational expenses and maintain smooth business operations. These loans are designed to address temporary cash flow gaps, seasonal fluctuations, or unexpected expenses without requiring long-term commitments. Working capital loans help businesses maintain operations, fulfill orders, and seize growth opportunities while waiting for accounts receivable or seasonal revenue increases.
Common Uses
Payroll & Operating Expenses
Ensure consistent payroll and cover rent, utilities, and daily operational costs
Accounts Receivable Gap
Bridge the time between delivering services and receiving customer payments
Inventory Management
Purchase inventory to fulfill orders or prepare for busy seasons
Seasonal Business Cycles
Maintain operations during off-peak seasons with lower revenue
Large Order Fulfillment
Finance materials and labor needed to complete significant contracts
Emergency Expenses
Cover unexpected costs like equipment repairs or urgent supply needs
Key Benefits
- •Quick Access to Capital: Faster approval and funding than traditional business loans
- •Short-Term Commitment: Typically 3-18 month terms, not long-term debt obligations
- •Flexible Use: Use funds for any operational need without restrictions
- •Preserve Cash Reserves: Maintain emergency funds while addressing immediate needs
- •Build Business Credit: Timely repayment strengthens business credit profile
How Working Capital Loans Are Evaluated
Working capital loans are evaluated based on your business's financial health and ability to repay. Key factors include:
- •Revenue & Cash Flow: Consistent revenue and positive cash flow indicate repayment ability
- •Business Credit Score: Strong credit history improves approval odds and terms
- •Time in Business: Established businesses with operating history are preferred
- •Financial Statements: Recent profit and loss statements, balance sheets, and bank statements
- •Purpose of Funds: Clear explanation of how funds will be used to generate revenue