How to Find Quality Merchant Cash Advance Companies


Jeffrey Bumbales

Every entrepreneur knows that working capital is the backbone of businesses, both big and small. From getting the business started from the ground up, to marketing it, to building inventory, a merchant cash advance can be the way to go. It’s a flexible financing option that gives business owners fast access to funds by selling a portion of their future credit card sales.

What is a Merchant Cash Advance?

A merchant cash advance can be exactly what you need to get you the fast cash required to cover all sorts of expenses. But don’t confuse a merchant cash advance with a loan – they’re not the same thing.

Basically, a merchant cash advance is a purchase of future credit and debit card receivables by the lender. Merchant cash advance companies will provide you with a cash advance based on your business’ credit card revenue.

Rather than paying a set amount of money back to the lender every month, a set percentage of your business’s credit card sales are remitted every day. This means that more money will be paid back on busier sales days, and less on slower days. This way, you’ll never be drained of your finances – you pay the lender when you actually get paid yourself. It’s like a cash-flow friendly way to get the working capital you need, and is ideal for business owners who like the idea of having the amount they pay back fluctuate from day to day.

How Can You Use Your Merchant Cash Advance?

There are seemingly endless ways that you can take advantage of a merchant cash advance:

  • Building inventory
  • Purchasing equipment
  • Relocating to a bigger unit
  • Covering payroll
  • Taking advantage of opportunities to grow
  • Covering unexpected expenses

The beauty of a merchant cash advance is that you’re not restricted in how you choose to use the money. As long as the money is used for the better good of your business, you’re free to use it as you see fit.

Not All Merchant Cash Advance Companies Are Created Equal

Picking the right merchant cash advance company is a critical step in the process. After all, you want to make sure you get the best deal for your business’s financial standing. Ideally, you’ll want to evaluate these firms according to three criteria: fees, customer service, and reputation.

Fees – Your merchant cash advance doesn’t come for free. There’s a charge attached to it. It’s important for you to take a close look at the fees that various companies charge in return for a merchant cash advance. Many times these fees can range from 15 to 18 percent, though the repayment rate could be as little as 8 percent of your daily credit card sales. While the interest rate charged is well worth the advantage of gaining quick access to cash, you’d still be well advised to check different business cash advance companies to see if they’re giving you the best bang for your buck.

Customer Service – For the money you’ll be spending in fees, you’re entitled to excellent customer service. The people behind the phone or computer should be knowledgeable, friendly, and available to answer any questions you may have. Every conversation should be courteous and professional, and should always end with all your concerns alleviated in a timely manner.

Reputation – What is the track record of the company you’re thinking of dealing with? You should look into their past dealings to see if they are reputable and reliable. This can be done by asking for references or conducting an online search of reviews left by real customers. You should also be given a contract in written form to make sure the company is legally obligated to fulfill their end of the bargain.

It’s well worth the time and effort to do a little research on a merchant cash advance company before entering into a contract. At Credibly, we’ll help you find the best merchant cash advance options for you to reach your short-term needs and long-term goals. We take the guesswork out of where to look for a merchant cash advance and point you in the right direction. To get started, fill out our online pre-qualification form or call our customer success team at (855) 348-2006.