What is a Merchant Cash Advance?
February 21, 2008
Merchant Cash Advance is a type of business loan which is usually presented as being a factoring product, where a Cash Advance company will review a merchants credit card processing statements in order to determine how much revenues are coming into a merchants business via the merchants credit card revenues / payments / sales, (they will also look at how much revenue is streaming into the business from cash & check payments / sales) they then purchase future credit card payments to the merchant at a discount.
For example: if a merchant is processing an average of $10,000 each month, when the merchant is approved the cash advance company will pay the merchant $10,000 (essentially giving the merchant a $10,000 cash advance) for anywhere from $11,200 to $15,500 (or more) of their future credit card sales income.
Is this right for your business?
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Entry Filed under: Merchant Cash Advance. Tags: merchant cash advance credit card factoring small busin.
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ilovepittsburghcash | April 26, 2008 at 10:42 pm
hmm, this sounds similar to a normal payday loan or cash advance, but I guess I’ll have to check out your site to get the details