Merchant cash advance.

A merchant cash advance is the purchase of a portion of your future receivables at a discount. You receive a lump sum today and remit a fixed daily or weekly amount, or a percentage of card sales, until a set payback amount is satisfied. It is the fastest capital in the market and the most expensive, and both facts matter equally.

How the process runs

1. Submit. A 1 page application and 4 to 6 months of business bank statements.
2. Offers. Qualified files typically see offers within 24 to 48 hours. We present competing offers with the true annualized cost of each computed for you.
3. Contracts. We read the paper to you straight: factor rate, estimated term, remittance mechanics, personal guarantee, and any confession of judgment provision.
4. Funding. Commonly within the same week, often within days of a complete file.

Typical terms in the market

Factor rates commonly run 1.15 to 1.49, meaning $100,000 advanced pays back $115,000 to $149,000. Estimated payback periods run roughly 3 to 18 months. Origination and processing fees are usual. Because the payback is fixed and the period is short, the effective annualized cost is far higher than the factor rate suggests, which is exactly the arithmetic covered in our brief on the true cost of a stacked position.

Documents you will need

1. Completed application.
2. 4 to 6 months of business bank statements.
3. Government issued identification for each owner.
4. Voided business check.
5. For larger advances, recent financial statements and a debt schedule.

What funders look for

Average daily balances, deposit consistency and trend, negative balance days and returned items, existing advance positions visible in the statements, time in business, and industry. The bank statements are the underwriting; everything else is confirmation.

The straight version

An advance is a bridge, not a lifestyle. Used once, for a short, high return purpose, it can be rational. Stacked, it becomes the problem we are most often hired to engineer a business out of. If you already carry positions, read the position buyout page before taking another advance.