Below are our answers to specific asked questions by our customers before. Go through them and if you can’t find what you want, contact us.
Merchant cash advance can be described as a type of financing where you’re given capital in exchange for a designated sum from your future debit and credit sales. The major difference between merchant cash advance and a traditional business loan is that a small percentage of your debit/credit card sale is deducted until the loan is repaid instead of the traditional method of making fixed payments every month.
No, it won’t. The MCA program is more concerned about the progress of your business than your credit history.
Different businesses have their own different cost of money. We’ll consider certain factors affecting your business like, time in business, credit-debit volume and industry-type.
The only requirement is that your business must have spent 60 days processing credit cards and it must process at least $7500 monthly.
A lot! We have very high approval rates, our services are faster, you can get your money in about 7-10 days and have your business approved in just a few hours. And finally, our application process is simple and fast.
The most important thing to know about business cash advance is that it is completely different from a loan. According to Bloomberg Business, it is the “purchase and sale of future income.” Your provider gives you the lump sum applied for and keeps a percentage of your monthly credit card revenue, so your repayments are not static; they’ll be higher on good months and lower on not so-great months. The repayment timeline for a large number of business cash advance is 12 months.
There are some elements of business Cash advance that make them a lot more desirable than traditional loans especially under certain circumstances. For instance, it might take a month or even more to get approval for a commercial loan from a banking institution, which is not exactly ideal if you’re in a financial bind. Loan approval for business cash advance on the other hand can be gotten in a little as 24 or 48 hours. And you don’t even have to make fixed monthly payments because the payment is removed from future income. Another advantage of business cash advance is that it is not tied to your credit history, time in business or any of the other factor that might prevent a small business from qualifying for traditional loan, which is great for business owners.
Business cash advances are perfect for small businesses that lack extended financial history or cannot qualify for traditional bank loans. Companies that carry out large credit-card purchases like those in the food, service and retail industries are the best candidates for merchant cash advance. Business cash advance is a better option for businesses in need of smaller sums over a short period of time, rather than taking out thousands of dollars over longer periods. Business cash advance is also great for businesses where the revenue is not steady enough to meet up with fixed monthly payments.
You cannot use merchant cash advance if you don’t have any business volume on your credit card. Small business owners who’ll rather go for the lowest interest rate possible will prefer traditional loan options.
You may also be interested in more funding than what is obtainable from a regular business cash advance, even if you have to spend years paying it back.
Armed with all these information, you should be able to decide if a merchant cash advance is what you need for your small business or not. And if you think this type of funding will be perfect for your small business, you can fill this pre-qualification form.
Below are some of the differences between merchant cash advance and bank loan:
- Structure – A merchant cash advance gives you an advance on the future revenues from your business in exchange for the right to some portion of your future revenues for Operating In The Black.
- Timing – It is possible to gain approval for merchant cash advance in 24 hours while traditional bank loans might require as long as 30-60 days.
- Term – Merchant cash advances are designed for short-term financing. Traditional business loans on the other hand, are designed to meet long-term capital requirements.
- Credit Score – Merchant cash advance is designed to rely more on the volume of monthly business deposit than credit scores.
- No Collateral Required – Collateral is needed as security for traditional bank loans, but merchant cash advance does not require any form of collateral. This way, the business owners are free to use their capital in any way they deem fit.
- Business History – Most banks avoid loaning money to businesses without a business history of 5 years. At OITB however, we don’t require more than 6 months business history to offer financing.
At OITB, we have tremendous respect for our customers and take customer service very seriously. The truth is that, we won’t even have a business if not for our small business owners.
We’ll provide you with an expert funding adviser immediately you apply to OITB for merchant cash advance. These advisers will answer all your questions about the funding process even well after the process is over. Our aim is to establish a lifelong relationship with our clients.
We are determined to help as many business owners as we can. This is why we treat all our customers with exceptional care… The aim is to help you build a successful business!
Experts at providing quick turnarounds, we’re one of the few financial institutions that offer automated underwriting solutions, where applicants are given financing decisions in minutes!
California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through OperatinginTheBlack LLC, and a licensed finance lender/broker, California Financing Law License No. 60DBO-44694.