Cash Advance
Cash Advance, an advance of cash to a merchant with no limitation on use of funds is based on an agreed repayment plan which is guaranteed by the business from its future credit card sales or receivables. Put differently, a designated portion of every future credit card sale will be deducted on a per transaction basis to repay the ‘Cash advance’ provided.
Comparison: Business Line of Credit vs Cash Advance
| Small Business Loan | Business Cash Advance | |
| High Credit Score Required | Scores down to 500 ok | |
| Business plan Required | Business plan not Required | |
| 3 Yrs Business Tax returns required | 4 - 6 Months statements req. | |
| Personal Guarnatee Required | *No personal Guarantee Required | |
| Application Fee | No Application Fee | |
| Origination Costs and Hidden Fees | 1 Time closing fee | |
| Lenghty approval process | Approvals in upto 72 hrs | |
| Fixed monthly Payment | No fixed payment, no Late fees | |
| Collateral is all business and personal assets | Collateral is future credit card sales |
* Guarantee against fraud and intervention required
Why is it called a Business Cash Advance and not a Business Loan?
When a bank makes a loan, it is regulated by state and federal government regulators. There are specific rules and regulations they must follow. Should they not follow those guidelines, they risk heavy fines, reduction of credit ratings and possible receivership (That's bankruptcy for a bank!).
Rather than lend you money like a bank, we purchase your future credit card sales at a discount. A monthly percentage of future sales are used to determine repayment. There are no bank loan repayment schedule, no monthly invoice statement, no penalties and no late fees. (How about rebuilding a positive credit rating with little effort? Repayment occurs automatically and follows your business revenues. We don't get paid unless you do! We invest in your business. This is not a loan or a grant, it is an investment. As investors we seek a return on our investment.
If you meet the basic requirements, there is a 95% chance of approval, compare to the bank's 92% chance of rejection.
- Must be in business a minimum of one (1) year
- Currently accept Visa and MasterCard credit cards with a minimum of $2,500 per month processing volume (some exceptions)
- Must be a fixed commercial retail business, service company or restaurant.
- Can provide at least four (4) months
- Apply for Free - No Obligation!
Most applications are processed in 48-72 hours. Once approved, you will receive a cash deposit directly in your bank account in as little as 5 business days. After you received funding, you will have the opportunity to have access to additional capital, if desired.
How much money can I get?
To determine what exactly what you qualify for, complete the attached application form and provide us with four months of your most recent merchant credit card statements. You may qualify from $5,000 to $500,000 per merchant account with the ultimate amount advanced reflective of your processing volume.
Why Invest in Small Business?
The banks appear to have the money but won't lend to businesses who really need it. Venture capitalists typically invest starting at $1 million and up. They will not even look at you if you need a few thousand bucks. Family and friends expect too much and contribute too little! Worst of all, they think because they gave you some money, they own your business. The price you pay from borrowing from family and friends is higher than any loan you could ever pay.
Why we require one year in business in most cases?
Because the advance is unsecured – that is, you put up no collateral – we want to be certain the business we are investing in is stable and secure. We’ve also learned from experience that 50% of start-up businesses fail the first (1st) year. However, we do make exceptions on a case by case basis. Again, keep in mind that we are Investors, not Bankers.
Why use credit card sales?
As Investors, depending on your industry, we learned that credit cards represent 10-50% of your gross revenues. We partnered with credit card processing banks that allow us to collect the first 10-25% of your Visa and MasterCard credit card sales. This provides an immediate return on our investment; reduce our risks, while not tying up all of your cash. Once the investment is re-paid, you will receive 100% of your Visa & MasterCard sales. Our Investors are happy and we are able to re-invest in other businesses.
If you are a broker or wish to inquire regarding and account executive opportunity please contact us for details on a strategic partnership, compensation and other specifics.