There are vast differences between a traditional bank loan and a merchant cash advance. A merchant cash advance, although more expensive is actually much more flexible that a standard bank loan. A bank loan, especially these days is an extremely hard thing to come by. Not only are the requirements unbelievably stringent, but the rates and stipulations are often very harsh, and not easily absorbed by a business that is in need of a cash advance. A merchant cash advance is very flexible and made to work with a merchant’s credit card volume, every time a merchant accepts a credit card, we collect our payback. It’s as simple as that.
With a bank, there is a very firm, set due date for all payments. Should a merchant miss that payment, additional fees, penalties will be added to the cost of the payment, and the overall amount owed. With Fast Merchant Advance, the cost is 100% set up front. Never will any fees be added to the total amount of funds due. There are no set times for the cash to be paid back, every time a merchant collects a credit card payment, we collect our set percentage from that sale, and that satisfies the repayment back to us. While there are no set payback times for a merchant cash advance, a merchant who pays back according to our expected schedule will be rewarded with the option to take additional funds.
A bank will also charge several initiation fees including large application fees, and account setup fees. We have no fees to initate a merchant cash advance, and get a merchant the funds they need. Generally, within 5 business days we can do the underwriting, convert a business owner’s merchant account over to us, and have them funded. Try getting that from a bank! We urge all of our merchants to try and go to a bank first. The money is less expensive, and often makes sense for a business owner. However, most of those merchants come back to us and opt to use our funds instead. We are much more flexible, and much easier to payback. A merchant cash advance is a fantastic weapon for a merchant to have in their arsenal.