Merchant Cash Advance Lenders

Merchant cash advances are intended to be quick and you can have the funds in your account 5 working days after an application. In fact, that’s why the eligibility requirements are low across the board – this is a fast, alternative (and often more costly) method to traditional business loans. 

Cash advance lenders therefore focus on speed as a key selling point, and most lenders will provide you with the funds within a couple of days after applying.

Most lenders try and work around your current business set-up, meaning in most scenarios you won’t need to change your existing card machine provider. This isn’t always the case though, and so it needs to be checked at the time of applying. Lenders such as Boost Capital accept all card types, too.

Usually, merchant cash advance providers will not require the funds to be spent anywhere in particular. Funding for a specific purpose is usually for larger and more traditional lending methods. It’s always worth asking, though.

Yes, credit will not typically stand in your way of a merchant cash advance. The reason for this is that, whilst the loan is unsecured, it is somewhat secured regarding the automation aspect. Lenders know that so long as you have card sales, they get their money. It shares resemblances to the PAYE tax system, in which you never see that money. Thus, lenders are more concerned about your future card sales than they are about your credit score.

Some companies offer future top ups, and some do not. Merchant Money is one example of a lender that, after 4 months of gaining access to the loan, offer the potential for a top up (extra financing). If you plan to top up, it’s worth bearing in mind that your cash advance provider will take into account how you have been performing since taking the loan.

In short: until the loan is fully repaid. This is the downside of cash advances — you cannot fully predict when it will be paid off, because you cannot entirely predict your card sales. Equally, it is also the main benefit. The repayment term fits around your situation, and how well your sales are doing.

No. Personal guarantees are not necessary with the leading lenders in this financing market space. The reasons for this is similar to the reasons why credit isn’t important — it’s all about revenue.

Seasonal Businesses
Businesses with fluctuating sales revenue can make the best use of merchant cash advances. A prime example of this is seasonal businesses, where sales may depend entirely on the time of year (e.g. pop-up Christmas store company). The financing can be extremely useful to ensure you can cover your fixed costs during the slow seasons, such as maintaining your website.

Another reason why these companies are so well suited is that they may get a good rate and a good loan amount, compared to the reality of their business in an annual context. Many cash advance lenders will take only assess a handful of previous months’ sales revenue. This could lead to a disproportionately high result in their hot season, meaning they can land a great financing deal just in time for their slow season.

Struggling Cash Flow
When applying for traditional forms of business financing, you will often have to prove that your cash flow is sufficient to cover the repayments. With a traditional bank loan, profit is important but cash is king. With cash advances, neither of these carry much weight. Struggling cash flow doesn’t get in the way of gaining approval, and in fact, it is the number one reason why a business might seek it in the first place.

Adverse Credit History
Usually, a company’s ability to gain financing depends on its creditworthiness. This is why cash advances are a useful alternative for those who have a poor credit rating — most lenders will not even perform a credit check.