THE MERCHANT LOAN/MERCHANT CASH ADVANCE: Based On Bank Deposits/Credit Card Receivable Factoring

 

The Merchant Loan and Merchant Cash Advance products are the newest forms of alternative financing for small business owners and entrepreneurs, with estimated collective industry funding volumes of around $700 million. The Merchant Loan is completed is through a loan based on bank deposits and bank balances. When examining bank deposits and bank balances to provide a Merchant Loan, a lender will conduct an examination of the business bank account for cash flow management, negative daily and month-end balances, overdraft fees, return item fees, and general NSF fees, to determine if the bank account of a business is strong enough to handle a Merchant Loan. Once approved, the loan is structured for around 100% of the monthly gross sales volume of a business and structured for pay back in 6 - 24 month terms. 

 

The Merchant Cash Advance product factors credit card receivables, and a lender will purchase the future credit and debit card sales of a small business in exchange for a lump sum amount of cash provided right now to the business, to use for working capital initiatives. The lender collects through holding a percentage of the daily credit and debit card sales of the business, meaning that all payments are non-fixed. The approval amount is usually 100% - 200% of the monthly processing volume. Once approved, the loan is structured for pay back in 6 - 24 month terms. The examination of a merchant's bank account will still come into play as the examination of cash flow management, negative daily and month-end balances, overdraft fees, return item fees, and general NSF fees, is still used to help determine if the bank account of a business is strong enough to handle payments.


1ST CAPITAL LOANS recommends the usage of the merchant loan and merchant cash advance products, which have the same structure of our SMALL BUSINESS GROWTH LOAN. Our financing comes through our venture capital partnered platforms and our loan is highly accessible with approval amounts that are highly structured. Review information on our SMALL BUSINESS GROWTH LOAN and fill out an Online Application to get started with our quoting procedure.

 

After reviewing our solutions and resources, please give us a call at 586-480-2140 or email us at Support@1stCapitalLoans.com to begin the process of growing, developing and sustaining your business through the assistance of our product suite.  We look forward to working with you, consulting you on your growth needs and helping get the capital, technology and risk management implemented into your operations for the success of your enterprise.