The solution for many businesses may be a business cash advance (also known as a merchant advance).  There are many advantages to merchant advances: no personal guarantees required and no set payments are among the top ones.  The payments are made by deducting a small percentage of Visa/MasterCard receivables on a monthly basis.  This flexibility helps mitigate high fixed costs that can’t be paid when your business has a slow month or even if it shuts down for the season.  Another benefit worth mentioning is that it isn’t necessary to have a great credit score to qualify, which makes it much easier to obtain the equipment or supplies without involving other parties to co-sign.  Most importantly the equipment can be purchased free and clear without any liens to worry about.  There are many other benefits besides the ones already mentioned, however those are the few that are closely related to the financing of equipment.

Financing or leasing small business equipment can be frustrating on many levels, why not let getting approved and paying for it be the easy part.  Merchant advances give a business the ability to run and service the clients instead of catering to banks and other companies that absorb time and frustrate business owners.  Merchant advance is a true alternative to the traditional equipment lease.

To better understand the benefits of a merchant cash advance – an alternative for traditional business financing – one should first learn about its background. Merchant account advance is a relatively new addition to the world of business funding. It was created about 10 years ago to service the needs of business owners that were unable, unqualified or unwilling to utilize the traditional financing, such as business loans. It is much easier to get approved for a merchant cash advance since the requirements are generally easily met and often get down to not having an existing bankruptcy or being significantly behind on the rent or mortgage payments for the business property. Approval for the merchant advance funding can happen in as little as 2 days if all the required information is available and submitted. The overall guideline are set up to allow for the majority of business owners to get approved, taking into consideration all the issues and “emergencies” that arise when starting a new business.

Business financing can be a difficult path to walk if everything isn’t perfect and that is why the addition of the merchant advance as an alternative to the business financing is so important to commerce as a whole.

1. A merchant advance is NOT a small business loan.
2. A merchant cash advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card sales.
3. The merchant cash advance company will deduct your repayment directly from consumer credit card payments – no monthly bills!
4. Candidates for merchant advances are mostly (but not limited to) retail, restaurant and service businesses that have consistent credit card sales for 2+ months.
5. This type of cash advance is perfect for businesses with unfavorable credit or little/no collateral.
6. Advances are processed in 7 days or less for amounts between $5,000 – $200,000.
7. Most advances are repaid within 1 year of the start date HOWEVER there is no set payback time period and no set monthly payment amount.
8. There are no appraisals, closing costs, application charges or hidden fees.
9. Merchant cash advances can be used for pretty much anything including: payroll, inventory, cash flow, advertising, equipment and renovations.
10. There is a 90% applicant approval rate on merchant cash advances for applicants who are up to date on their lease and have not filed for bankruptcy in the last 12 month.

Traditionally the medical equipment is financed or leased for a period of time. Each of those options requires adequate credit scores and often require to be secured by personal property. In current economy loans are harder to come by than ever: acquiring one can be a daunting task, require quite a bit of documentation and may take months to complete.

For a medical practice accepting Visa or MasterCard as a form of payment Merchant Funding can be a great (if not “the only”) alternative to acquire business working capital. Merchant Funding provides you with a no-hassle up-front credit line of $5,000 to $250,000 that is paid off by a small percentage of your future Visa or MasterCard receivables. The credit line can be used for any type of business expenses, including the purchase of medical equipment, expansion, taxes, salaries… the list goes on.

The strong advantage of Merchant Funding is its ability to adjust to the level of your income: a slower month for you means a lower payment. But the advantages do not end there. Similar to a traditional line of credit, a business owner is able to withdraw additional advances, enabling to utilize the same account for future purchases: no additional documentation or applications are needed!

The approval process for Merchant Funding is quick and painless: most applicants can become approved in as little as 24 hours and get the funds in as little as 3 days! There are no FICO requirements and bad credit is not a problem due to the nature of this product. The documentation required to initiate the process is also minimal.

To begin the process of acquiring business working capital you can apply online or contact us if you have any further questions: our friendly account executives will be happy to assist.