Merchant Cash Advance

A merchant cash advance is a loan against future credit card transactions. It is simpler than a bank loan and well suited for businesses with high volumes of credit card transaction. Typically we find these in the retail and hospitality industries.

It is a good tool when a business needs funds rapidly such as in the event of unexpected repairs or capitalizing on a business opportunity. The lender advances an agreed amount of money to the merchant. In return, the merchant will pay a small portion of each future credit card transaction back to the lender. Both parties agree to all fees, rate and repayment amount per transaction ahead of time and in the event of slower sales than expected, there is generally the option to revise the terms so as not to cut off cashflow.

Unlike a bank loan, there is no collateral needed. If your business does not qualify for asset-based financing or does not have a line of credit, this is a good option for fast funding. 

Ask one of our FullHorn Finance Consultants how to get started.