There has existed a cloud of uncertainty about Business Cash Advances due to this relatively new method of financing for small to medium size business, and poor advertisement and explanation by the industry leaders. Finally merchants can come to Merchantcashadvances.org, the #1 source for information about the industry.
The program works like the following: a merchant cash advance company will advance a business owner money at a fixed cost. The lender collects the money back by taking a percentage of the merchant’s Visa/MasterCard sales until the advance is paid back in full. The cost of the program is determined by the projected time period it takes to pay back the loan. The merchant is usually not required though to pay back the advance under any time period.
Generally the funding process is quick and not terribly paperwork heavy. Most lenders will require minimal paperwork initially, including a few months bank statements, a few months merchant processing statements and a filled out application. After an underwriter reviews the file, numbers can be produced within 24-48 hours and contracts can be out that same day provided the merchant and the lender have come to an agreement about the amount of the advance, the cost of the advance, and the percentage of Visa/MasterCard receivables withheld.
For more in depth information about the merchant cash advance program!