Everything You Need to Know About Merchant Cash Advances
Whether you need cash for slow seasons or want to seize a new opportunity, we’re committed to assisting your business. Once you apply for and receive a merchant cash advance, you can sit back and watch your business grow!
What is a Merchant Cash Advance And How Does It Work?
At Fora Financial, we’re passionate about helping small business owners like you succeed. That’s why we provide merchant cash advances to small business owners in a variety of industries!
Unlike a term loan, merchant cash advance remittance fluctuates with your business’s sales patterns. We understand that businesses have their ups and downs. Your business may have a few months where sales are booming, and then go through a time when they slowdown.
Naturally, you won’t be able to remit the same amount during both periods. When sales decrease, you’ll need to try and cut expenses in order to remain operational.
That’s why with when pursuing financing from a merchant cash advance company, there’s a holdback percentage. This is a set percentage that is withheld from your credit card transactions until you satisfy your obligation. That way, a certain percentage of the sales from your bank account will be used for remittance, instead of being held to a set payment amount.
Many business owners appreciate this because there is no set payback schedule, so they have the flexibility to remit their cash advance in a similar pattern to the ebbs and flows of their sales. When sales are up, your holdback percentage will result in a higher dollar amount. On the other hand, if your sales are experiencing a lull, your holdback percentage will result in a lower dollar amount.
Businesses that Benefit from Merchant Funding
Merchant cash advances are especially beneficial for business owners in the restaurant, retail and services industries. This is because these industries typically receive a large volume of credit card transactions. Businesses that either don’t accept credit cards, or receive credit card transactions infrequently, usually won’t qualify for merchant funding.
If you run a business that primarily accepts credit card transactions, pursuing a merchant cash advance could be the choice that takes your business from good to great!
How to Apply for Merchant Cash Advances
To get started, we’ll ask you to complete our one-page application, submit three months of credit card statements, and three months of bank statements. On occasion, we may ask for you to provide tax returns, a balance sheet, or a P&L.
If you’re trying to receive a cash advance as quick as possible, we suggest compiling these documents prior to applying.
Merchant Cash Advance Requirement Details
Before applying, it is important that you understand how to qualify for a merchant cash advance from Fora Financial. We have these prerequisites in place so that businesses can responsibly and effectively utilize our products.
We require that your business be up-and-running for at least 6 months prior to receiving a merchant cash advance. Being open for 6 months will likely increase the success you have with our merchant cash advance product.
Another funding requirement we have is that your business make $5,000 in credit card sales each month. If you generate less than $5,000 in credit card sales, it may be challenging for you to remit your merchant cash advance. If satisfying your obligation will be too difficult, we don’t want to put the future of your business at risk.
In addition, any business we work with can’t have any open bankruptcies or dismissed bankruptcies within the past year. If this applies to you, we encourage you to take care of these issues, then apply once a year has passed.
If you have any questions about our merchant cash advance requirements, don’t payday loans online Carthage TN hesitate to contact our Capital Specialists. They’ll be able to provide you with further direction and are always happy to help!