Glossary of Terms

Below, are a few terms that you should know when applying for a merchant cash advance. Understanding these terms will help your merchant cash advance experience to run quickly and smoothly.

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  • Bad Credit Business Loan - A loan that does not require borrowers to have excellent credit scores in order to be eligible. Many lenders will not approve borrowers with credit scores under 700, but we can provide business funds to small business owners even if their credit scores are not great.
  • Business Cash Advance - An innovative business financing option and an alternative to the traditional bank loan. Our business cash advances make it easier for small business owners to acquire funds for their businesses, especially if they don't qualify for traditional bank loans.
  • Business Financing - Any funds that a business owner uses for the creation, maintenance, growth and/or development of his/her business. Small business owners can use MRI's merchant cash advances to finance their business endeavors, if they have owned their businesses for a minimum of six months and their businesses process a t least $5,000 in credit card sales.
  • Business Loan - A traditional method of business financing where small business owners borrow business funds from a financial institution (usually a bank). Excellent credit and collateral are often required for eligibility.
  • Collateral - Personal assets that are required to secure certain loans. If the borrower defaults on the loan, the lender has the right to repossess the borrower's collateral. MRI's merchant cash advances require no collateral because they are always completely unsecured.
  • Credit Card Advance - A cash advance on your business's future credit card sales. MRI helps you optimize your business's credit card sales by providing credit card advances of up to $500,000 for business owners. The advance is then repaid via a small percentage which is automatically deducted from your business's daily credit card sales.
  • Credit Card Factoring - A procedure in which a business owner receives cash upfront, then his/her future credit card sales are used to repay the advance. Only a small percentage of the business's daily credit card sales is deducted until the entire sum is repaid.
  • Fixed Monthly Payment - Payment for a loan that must be paid monthly. The payment amount is the same every month.
  • Flat Rate - The unchanging, one time amount that a borrower is charged for a merchant cash advance. This amount is included in the borrowers payback amount and repaid as a small percentage of his/her business's daily credit card sales.
  • Loan Term - The period that a borrower has to repay a loan. If the loan is not repaid at the end of the term late fees and penalties may be applied. Since there is no allotted time frame in which a merchant cash advance must be repaid, MRI does not charge late fees or penalties.
  • Merchant Loan - A business funding option designed especially for merchants, using their daily credit card sales to provide funds for business endeavors, and using their future credit card sales to repay the funds.
  • Merchant Statements - The monthly statements that show the credit card sales that took place during a one-month period. We review the last four months of these statements, to determine the amount that a small business owner qualifies to receive.
  • Monthly Credit Card Sales - The amount processed in credit card sales, by a business, each month. Merchant cash advance borrowers usually qualify to receive 1 to 3 times this amount.
  • Monthly Gross Sales - The dollar amount that a business processes in sales each month, including credit cards, cash, checks and all other forms of payment.
  • Repayment - The paying back of lent funds. The merchant cash advance repayment process differs from other traditional methods. The merchant cash advance is repaid only through a small percentage deducted from the business's daily credit card sales.
  • Restaurant Loan - A loan specifically for restaurant owners, to be used for expansion, inventory, upgrades, etc. With our restaurant loans alternative, you can get cash for your restaurant within the first week of its opening.
  • Small Business Loan - Money given to a small business owner for his/her business, that must be repaid. A loan that is used to start, improve and/or maintain a small business. Our small business loans alternatives are innovative and convenient for small business owners.
  • Split - The division of processed credit card sales between the business owner and the merchant cash advance lender. If the split is 85/15, whenever a customer pays with a credit card, 15% of the sale goes toward repaying the merchant cash advance and 85% goes directly to the business owner. This method is flexible as it goes with the flow of business.
  • Unsecured Business Loan - A loan that a business owner can receive without putting up collateral. Many unsecured business loan providers require borrowers to have excellent credit scores, in place of the collateral requirement. On the contrary, Merchant Resources International's merchant cash advances are unsecured, even for borrowers with provides less-than-perfect credit scores.
  • Working Capital - The cash that a business has available to pay day-to-day operating expenses. Small business owners can calculate their current working capital by subtracting their current liabilities from their current assets. Merchants can increase their working capital by receiving an MRI merchant cash advance.

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