A Merchant Cash Advance (MCA) is one time deposit for the full amount that you are approved for. It can be repaid as an agreed-upon percentage of future credit card and/or debit card sales or in fixed daily or weekly debits from your bank account, known as ACH (Automated Clearing House) withdrawals.

• You receive 100% of the advance amount upfront.
• Repayment terms up to 12 months.
• Automatic daily or weekly fixed rate payments.

A merchant cash advance is NOT a loan. It is a discounted advance of your revenue. Instead of borrowing money and paying back principal and interest over time, you sell your future receivables to the MCA company for a smaller amount of capital that you can access immediately.

For example, you sell $10,000 of future receivables for an advance of $7,500 from an MCA provider. Under the MCA agreement, a fixed daily amount will be deducted from your business bank account until the $10,000 is paid in full.

No – Because MCAs are advances of future revenues — and not loans — no interest is involved.

A merchant cash advance “advances” you funds based on future sales. For example, if you need money to purchase wood for a fencing project but won’t be paid until the work is completed, you could seek, and most likely get, an MCA.

In terms of financial structuring, MCAs act as commercial transactions, not loans. They also are unsecured and use a factor rate (sometimes called a buy rate), which can be thought of as the cost of financing.

• You receive one time deposit for the full amount that you are approved for.
• Suitable for large investments, cash flow management, or consolidation of existing debt.
• Typically higher amounts available compared with Line of Credit.

A factor rate represents the discount taken by the MCA provider buying your future revenue. If, for instance, you expect future receivables of $9,750 and are approved for an advance of $7,500, you would pay the MCA provider at a factor rate of 1.3.

The rate varies but generally falls somewhere between 1.1 and 1.5. The MCA provider will determine your specific rate based on a number of variables, including consistent monthly revenue, no negative balance days, and other debt obligations.

Banks and lending institutions sometimes say “uncollateralized” rather than “unsecured.” The words mean essentially the same thing, stating you aren’t required to put up collateral to secure funding. In that regard, MCAs differ entirely from loans. If you default on an MCA, the provider can’t come calling to collect your home or other personal assets.

Qualification for a Term Loan is determined based on a number of factors. These factors include, but are not limited to, your business performance and cash flow, the, and to a lesser extent your personal and business credit history.

• Your business must have been in operation for at least 6 months
• Your personal credit score is 530 or more
• Your business generate at least $500,000 in annual revenue.

Merchant Cash Advance offer an alternative to businesses who may not qualify for a conventional loans or any of the other loans offered by us through our partners.

Yes – FundersPoint specializes in helping business owners with low credit scores. When making a funding decision we give more wight to factors related to  your business performance and cash flow, and less to wight your personal and business credit history.

Our Merchant Cash Advance program go up to $2,000,000.  If your needs are different, contact us for a custom quote. Our team of experienced advisors will help find the best solution for your business needs.

You may be eligible for additional funds when your loan is paid down 40-50%.

FundersPoint determines your approval within minutes. You should use it if seeking an MCA of $35,000 or less.

Larger amounts or more complex businesses can involve an approval period of 24 to 48 hours. To start that process

Typically, once approved, the funds will be sent via ACH or bank wire transfer.can be received in your bank account as fast as a few hours, depending on your payment preferences.

Yes – you always have the option to pay off the Merchant Cash Advance earlier. As this is not a loan but an advances of future revenues the repayment amount is a fixed and by paying earlier would not save you future interest as with some other loans.

Most people get a merchant cash advance to “bridge a gap.” They know sales are coming, but they need money, now, to repair a walk-in freezer or to make payroll. An MCA provides that, delivering money in the present that can be paid in the future (i.e., once the sales come in).

A merchant cash advance can be used for almost any purpose. Most small business owners, though, focus on true emergencies like a broken-down delivery truck or a tax payment to the IRS. Another common scenario involves opportunity. A small business owner sees a sale on much-needed building space and needs immediate capital to make a down payment on it.