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Copyright © 2019 VELOCITY CAPITAL GROUP

What is a Merchant Cash Advance?

An opportunity to Reinvigorate your Business & Cash Flow

"There are plenty of firms that provide services like Velocity, but I’ve not met one that listens to your needs and caters a plan to those needs!"

 - Trustpilot Review

How does a Merchant Cash Advance work?

A merchant cash advance is a sum of money given to a business in exchange for the future receivables of that business over an agreed-upon time period. The funding process can be broken down into 5 Stages: Application, Analysis, Funding, Repayment, and Renewal.

Stage 1 - Application 

Lenders like us need to gain an understanding of the particular financial situation that your business is in. All lenders will require you to submit documents about yourself and your business along with your application. Standard requirements will include your identification, recent bank statements, and information about your company's cash flow.

Stage 2 - Analysis 

After receiving your application and business information your lender will then analyze the risk associated with the requested amount. After your lender has reached a verdict, they will reply to you with an offer either matching your request, provide an adjusted offer, or a decline.

Stage 3 - Funding

Once you're satisfied with an offer, you can accept the advance and its terms to receive the funds quickly. Funders like us will be able to fund you the day of and week of approval. Other funders may request to distribute the advance over a longer period.

Stage 4 - Repayment

The last step is starting to make payments. The lender will automatically debit your account with the agreed-upon re-payment amount and frequency.

Stage 5 - Renewal

Typically Stage 4 is the last step, but that's not always the case. Let's say that you're halfway through paying off an advance, but another opportunity comes along to improve your business. Lenders like us can provide you with additional capital once a significant portion of your principal sum has been paid off. Staying financially agile is indispensable in today's business landscape.

How does a Merchant Cash Advance help businesses?

The quick influx of capital provided by a Merchant Cash Advance can open many doors for businesses. Determining where to properly invest those funds is crucial. There are 4 main areas that businesses can focus on to make the most of their advance.

New capital can mean an opportunity to expand your business' revenue streams. Use fresh capital to create new areas where customers can interact with your brand. (New Website, Product Development, etc.) 

1

Create New Revenue Streams

There could be something in your business that's going very wrong, and until it's resolved, the company will operate inefficiently. Capital from a merchant cash advance can be put to quick use to erase whatever issue is hurting your business.

3

Fix On-Going Business Problems

Improving and adding to your place of business can be a strategic use of an advance. Often this is focused on reducing operational costs. Think of what equipment, software, or person will bolster the success of your business. 

(Improved Machinery, New Productivity Software, etc.)

2

Improve Operations

Opportunities can present themselves out of nowhere. Almost anything that can boost your business will require capital and is time-sensitive. Fast funding from an MCA allows you to move quickly and capitalize on the opportunity.

4

Jump at an Opportunity

Empower your Business

Discover your options Today!