From the Blog

Merchant Cash Advance Requirements – Who Can’t We Fund?

We’ve written all about what types of merchant cash advances we can do, but haven’t mentioned the types of merchant advances we can’t fund. There are certain industries that we simply cannot work with either because of their business nature, or simply the risk is too high.

If a merchant’s business is a restaurant, retail store, day spa, bar, liquor store, etc, we generally have no problems approving and funding these types of business.

The following business types are restricted and we can not provide merchant cash advance products to them:

  • Adult businesses including adult related products and services
  • Gambling Establishments
  • Travel agencies and event services
  • Drop shipping & Fulfilment companies
  • Gas Stations
  • Cell Phone Stores
  • Bail Bonds
  • Check Cashing Stores
  • Collection Agencies
  • Credit Card Protection
  • Credit Restoration / Repair
  • Dating Services
  • Home-based Businesses
  • Mortgage Lenders
  • Real Estate Brokers
  • Real Estate Management Companies

Two Examples below:

Gas Stations are a type of business we are not able to work with. The profit margins on gasoline are very small, most of the time being just cents on the dollar. Should we give a merchant cash advance to a gas station, the payback percentage we would take (generally 20%) would be too high for the merchant to sustain any profitability. As mentioned in other blog posts, Fast Merchant Advance will always ensure that we are enabling the merchant to continue to be profitable.

Cell Phone Stores are another type of business we are not able to fund. We know what you are thinking. “What?! You can’t provide merchant cash advance for cellular phone stores?! Surely they have ample credit card processing volume!” You are right, they they do have volume. HOWEVER, most cellular phone stores are re-sellers for the major cellular providers, and not direct authorized agents. What does this mean to us? It means that the majority of the funds they collect are from bill payments, and deposits, which immediately go to the provider. Example: If we walk into Joes Cellular store, and buy a phone, put down a deposit, and pay our first month’s bill, Joe will run our credit card for $500. However, only $75-$100 dollars of that money will actually be Joe’s profit on that sale. Therefore, when we look at this processing statements, and see lots of volume, we know that most of the volume he processed was immediately diverted elsewhere leaving him with a small profit margin. Again, taking a merchant cash advance from us would hinder his ability to pay down the balance, and maintain a healthy profit margin.

Fast Merchant Advance strives to help businesses flourish, but unfortunately we cannot assist them all. If you have a similar business, and would like to know if you qualify for our cash advance program, please visit, or call us at .

To find out how much your business is qualified for Apply for a Merchant Cash Advance Today