These funding vehicles are for businesses who accept credit cards. If you accept credit cards and have sales over $5,000 monthly, you might be a great candidate for merchant advances and card credit.
With Merchant Cash Advances, lenders review the merchant’s processing history to determine approval. If your business does consistent credit card sales of $5,000 or more each month and has limited chargebacks, you can qualify for this program even if you have challenged personal credit.
This program offers approvals as high as $250,000. Their approval amount will vary based on the amount of credit card sales that are typically processed each month. The lender will see how much they process each month in credit cards, will then determine the time frame they want paid back, and will then give them an offer of what percentage they will collect on their future credit card sales until they are paid back.
The lender will look at your personal credit just to insure that you’re not currently in financial distress, such as having any large outstanding collections owed or judgments or liens. The lender just wants to insure that there are no legal situations that would cause you to default on the merchant loan. This is not based on a standard interest rates like normal bank loans, instead you will pay a set fee based on the risk of the transaction.
This is a great funding program if you have good credit card processing volume on a monthly basis even if you have personal credit issues.
English
Spanish