A merchant cash advance is a type of alternative financing that provides businesses with immediate access to cash in exchange for a percentage of future credit card receipts. It can be an attractive option for start-ups that can’t obtain traditional business funding or those looking for greater flexibility with repayment terms.
Unlike a bank loan where payments stay the same every month, businesses receiving a merchant cash advance repay a percentage of receipts based on sales volume. This arrangement can provide valuable peace of mind that the company won’t have to come up with a large monthly payment when sales are down. Other benefits of this form of alternative financing is that it comes with no hidden fees and the applicant doesn’t need to provide a personal statement or offer collateral. It is also possible to obtain the lump-sum payment within a matter of days.
Documentation Required to Apply for a Merchant Cash Advance
With future credit card sales acting as collateral to secure the loan, alternative lenders typically do not request extensive documentation as banks do. Before submitting your application, locate your business bank statements for the last three months or credit card receipts for the same time period. You will also need to prove your identity with a driver’s license or another acceptable form of ID and provide the routing and account number for your business checking account. Finally, you will complete a merchant cash advance loan application.
First Source Capital Wants to Be Your New Business Partner
At First Source Capital, we’re here to help your business succeed and not just offer a one-time loan. We invite you to check our online reviews to see what previous customers had to say about working with us. Please don’t hesitate to contact us when you’re ready to apply for a merchant cash advance.