What is a Merchant Cash Advance?
An opportunity to Reinvigorate your Business & Cash Flow
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How does a Merchant Cash Advance work?
A Merchant Cash Advance (also known as a Business 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 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.
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