Our business loans offer the predictability of a fixed repayment structure. Merchant Cash Advance Financing is based on the business’s annual gross sales and cash flow. Our business loans program is geared for people with past credit issues.
Knowing about credit scores
The credit scores are always vital when it comes to securing a loan for your start up business or any other kind of purpose like higher studies or medical emergencies. Thus, you can be rest assured of having a secure financial future ahead of you by securing a loan. However, the most important thing for securing a loan is the collateral which you need to show as an asset against which you may borrow the money. A clean credit score is always helpful in securing a decent loan amount from a reliable bank or financial institution. Read the rest of the article for more details.
The merchant cash advance bad credit is also known as business cash advance. So, it can be safely said that the business cash advance is a documentation of consent by an individual who is borrowing the money. The future profits are to be sold at a nominal concession for a hefty cash up payment. Every transaction of finances is done electronically so it saves a lot of personal time and hassles. You also do not need to make needless rounds of banks or face irate or unhelpful bank agents. This is main convenience in the modern age that technology is just at our finger tips to help us out. These are some of the main factors which help us to improve our credit scores and even secure a successful loan. Having a credit card can lead to unplanned, unnecessary and extreme expenditures which can prove to initially fun but ultimately devastating for the spender. Most credit companies charge huge interests and things can get really messy if the due amount is beyond the limit. This can also affect your business loans so it is always better to proceed with caution. This is where you need to take care of your merchant cash advance bad credit.
Thus, it is very important to know the credit history and also keep a decently balanced credit score as much as possible. Finding a good company is also very important when it comes to securing a business loan for your trade. Thus, you can be rest assured of running a successful business if you are well versed with the procedures associated with the loan procurement and the other steps. Once you are thorough with that, your business will be off to a great start.
Who Can Qualify for a Small Business Cash Advance?
BCAs, like merchant cash advances, are far easier to qualify for than traditional bank business loans. Even though it’s easier to get a business advance, there are still restrictions on this type of cash advance. This type of advance is another business financing option perfect for business owners who don’t rely on credit card or debit card sales for their sales deposits.
Common businesses that utilize this funding option are manufacturers, business professional services, wholesalers, distributors, restaurants, auto service centers, dry cleaners, online e-commerce stores, and other retail stores.
The Benefits of a Business Cash Advance:
- Allows bad credit. All credit is considered but Substandard, Mid-Prime to Subprime Credit are all acceptable
- Does not require a business credit
- No personal collateral required.
- Flexible repayment attached to future sales with no term limit
- Approval can be given even if you have a low monthly or annual revenue.
- No financial statements are required (Tax Returns, Balance Sheets, or Profit & Loss)
- Concerns about business bank statement issues, such as low daily balances and/or Overdrafts or NSF’s, can still be approved.
- Only a minimum of 6 months in business required. You don’t need to wait for 3 years in operation.
- If you have the need for speed, this is the financing for you. When you need money faster than the traditional process allows, a BCA gives you quick access to receive funds in less than 24 hours.
Frequently Asked Questions (FAQ)
Are Merchant Cash Advances/Business Cash Advances a good idea for small business owners?
If a business does not qualify for more traditional business loan products, both MCAs and BCAs provide access to capital that otherwise would not be available to businesses, offering a way to leverage credit card transactions and pay daily or weekly through these purchases by taking out a fixed percentage. With a factor rate of around 1.10% up to 1.45%, it’s a sound option for those looking for capital fast.
Is a Merchant Cash Advance the same as Merchant Loans?
Cash Advances are not loans, but many people still call Merchant Cash Advances and Business Cash Advances loan, MCA loans, BCA loan, credit card sales loans. Even though they are not business loans. there is no such thing as a merchant loan advance. MCA’s and BCA’s are a method of merchant financing. Merchant cash advance lenders are really a Business Funder and not Business Lender. The proper terminology for the provider of funds is funder, not a lender. Also, an advance does not charge interest, its considered factor cost or flat-rate financing.
What happens if you default on a Merchant Cash Advance (MCA)? If I close and I no longer have sales, am I responsible for the remaining balance of a Merchant Cash Advance?
If you no longer have sales and your business is closed, you are not responsible for paying back any remaining balance of a business or merchant cash advance. If the business were ever to re-open and sales resume the business would be responsible to complete repayment. there is no owner personal guarantee, just a business performance guarantee. If there is some type of fraud detect than the funding company does have rights reserved to recoup capital funded.
Who are the best merchant cash advance companies or the best business cash advance companies? How to compare merchant cash advance.
Marketplace business finance providers provide the best options for both a merchant cash advance and BCA.
Can a small business get a Merchant or Business Cash Advance if it is a new company?
A new business must have at least 6 months of revenue to qualify.
Marketplace business providers, some online business lenders, and business loan brokers offer MCA. However, banks have tighter qualifications than online lenders and therefore do not offer Merchant Cash Advance or Business Cash Advance financing options. Marketplace loan providers, online business lenders, and business brokers have better approval rates with less stringent qualifications, but charge higher rates than traditional banks because they take on greater risks.
If you want to apply for a Merchant Cash Advance, Commercial Merchant Funding can help. We offer a wide variety of trusted resources and alternative funding options for small business owners throughout the country. We’ve helped countless business owners get the funding options they need with a variety of financing options, whether it’s through an MCA, BCA, Small Business Line of Credit, Small Business Loan, Long Term Business Loan, or various other business term loan.
Whether you’re worried about annual revenue, time in business, or credit history — Commercial Merchant Funding can help. Merchant cash advances are a great way to receive cash flow fast, without needing to fuss around with banks or slow lenders. Furthermore, business loans are tough codes to crack without the right credit score. The system can be tedious and eventually devastating for small businesses that need cash advances quickly. With Commercial Merchant Funding, you’re able to speed up the process with alternative finance resources, options, and processes — and learn all the information we provide you to make good decisions. We’re here to partner with you and help you navigate the challenging financial road map.
Choosing between the various cash advance lenders can be a nightmare, especially with factor rate options that may have wide ranges. However, we’re all about empowering businesses like yours with premiere merchant cash advance services. For companies with fantastic sales projections, a merchant cash advance provides a friendly avenue toward success. For small businesses looking for cash advances quick and with simple application processes — Commercial Merchant Funding has you covered. We’ve been a trusted finance marketplace provider for countless business owners. With no term loan limit cash advances that you can receive sometimes in as little as 24 hours regardless of your credit score — there’s simply no better method available.
Check out How to Find the Best Merchant Cash Advance provider to weigh all the benefits and evaluate the decision to get funding.
|Cash Advance Program||Standard Business Loan Program||Bank Only Loan Program|
|Time In Business||4 Months||1 Year||1 Year|
|Profile||Merchants accepting CC Payments on a regular basis||Merchants accepting credit cards on a regular basis||Merchants that don't accept cc's or accept a limited amount of cc's|
|CC Processing||$5,000/month with at least 15 batches||CC processing required||CC processing not required|
|Bank Statements||2 complete bank statements for full submission||3 complete bank statements for full submission||3 most recent bank statements for full submission|
|Tax Returns||100k advances require tax return cover sheet||Tax return cover sheet for full submission||Tax return cover required for full submission|
|Bankruptcy||Bankruptcy discharged for 1 year||Bankruptcy discharged for 1 year||Bankruptcy discharged for 1 year|
|Third Party Payoffs||Merchant required to net at least 70% of advance||Merchant required to net at least 80% of loan||Merchant required to net at least 80 % of loan|
|Personal Credit||No minimum fico requirement||No minimum fico requirement||No minimum fico requirement|
|Required*||Complete app& signed auth w/CC Info listed above||Complete app& signed auth w/CC processing info listed above||Complete app& signed auth w/CC processing info listed above and 3 months bank statements|