What is a Merchant Loan?

A merchant loan, also known as a merchant cash advance, is a business funding method, devised especially for merchants. Small business owners have a variety of business funding options available to them, but the merchant cash advance is the only one that promotes sales and whose payback is formulated to go with the flow of your business.

Since the payback is deducted as a small percentage from a business's daily credit card sales, a borrower must process credit card sales and therefore, sale products and/or services to qualify for a merchant loan.

There are obviously other routes leading to small business funds, which small business owners could take. These include traditional bank loans, angel investors, equipment leasing, startup business loans, etc. Still, the fact that the merchant cash advance was designed, specifically with merchants in mind, makes it a great option for owners of retail and/or service-oriented businesses.

Here's why:

Repayments

  • Merchants can rest assured that the funds are meant to help, not hurt their businesses. The flexible repayment procedure goes with the flow of business. When your sales are low, your payments are low and you never have to worry about penalties or fees.

    • Renewals

  • Your cash flow problems can be eliminated with a merchant cash advance; because we let our merchants renew their advances every three to four months. You can renew your merchant cash advance as many times as you choose to.

    • Funding Requirements

  • If you have a business that processes at least $5,000 in monthly credit card sales, you can qualify for a merchant cash advance. Unlike other types of business financing methods that require a small business owner to have excellent credit and collateral, we use your business's credit card sales as the main determining factor of your merchant cash advance amount.

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