Frequently Asked Questions

Industries We Serve

• Restaurant Business Loans
• Auto Repair Shop Loans
• Trucking Business Loans
• Medical Practice Loans
• Retail Store Financing
• Merchant Loans
and many more

Merchant Cash Advance Benefits over Small Business Loan
Interest Rate: Merchant Cash Advance does not have interest rate it’s a set payback amount and it will never change. Technically Merchant Cash Advance is not a loan but rather purchase of future receivables Flexible: Bank loan is based on fixed monthly payment, it does not matter if you have available cash on hand to make payment, you will have to pay or late fees and penalties will accumulate skyrocketing small business loan APR . Merchant cash advance payback is completely opposite since it’s only based on credit card transactions volume and does not apply to your cash sales. Merchant Cash Advance payback is collected through small % of you credit card batches, if you do not have any credit card sales or sales are down your payment will be adjusted to the amount of that batch . Quick and Easy: Bank Loan approval process is a complex process which requires a lot of paperwork and time. On average only 20% of applications are getting approved and your credit score should be near perfect. It’s almost impossible to receive bank loan in the current economy, bank's simply aren't lending to small businesses. Merchant Cash Advance is the answer to tight credit environment. It takes 2 to 3 business days from the moment of application to receiving the funds. Bad Credit is not a problem during merchant cash advance underwriting process since approvals are based on your business performance not your personal credit history. Elite Capital can provide cash advances fast and easily without regard to the business owner's credit score . Even if a business has been rejected for a small business loan , it still may be eligible for a merchant cash advance . Approvals are usually made in twenty four hours or less and funding can happen as quickly as 3 business days . We will now be able to provide loan matches to business owners with lower credit scores , or those that are simply in a rush to obtain financing for a particular product and don't have valuable time for traditional underwriting timelines .
What Are The Advantages Of Merchant Cash Advances?
Cash-flow is essential aspect of small and mid-sized businesses . Cash is vital to keeping stock , paying vendors , and developing the business . With the economic downturn putting a damper on credit markets , businesses are searching somewhere else for capital . The new option merchant cash advance . Merchant Cash Advance the Basics A merchant cash advance offers an alternative source of business funding to entrepreneurs who lack the credit rating or collateral to secure a commercial bank loan.Unlike a loan, merchant cash advance funding is the purchase of a portion of business future credit card sales at a discount. Businesses benefit from a lump sum paid up front . In return, the merchant cash advance provider buys the right to retrieve a portion of the business credit card sales each month--usually around eight percent of total receivables. Advantages of a Merchant Cash Advance funding offers an attractive alternative to business loans. Benefits include: No Credit or Collateral A merchant cash advance is a safe approach to accessing cash. Whereas bank loans can affect a business credit rating, a merchant cash advance is a sales transaction and therefore stays off the credit report. Merchants who take a cash advance also avoid the risk of losing collateral, a common issue in commercial loan default situations. Easy Application and Collections Process. Merchant cash advance funding is a flexible, simple process from start to finish. Banks evaluate financial statements, tax returns, and business plans. Merchant cash advance providers consider only two simple criteria: monthly credit card returns and length of time in business. Typical minimums are $5000 in monthly credit card sales and nine months in business. Quick Access to Cash. Because there is so little paperwork to process, merchant cash advances offer a fast turnaround. While commercial loans can take weeks or even months to process, merchant cash advance funding is typically available within a week of submitting the application. This instant response can be an important asset if the business needs immediate funding to pay off a creditor or seize an unexpected opportunity. High Approval Rate. Merchant cash advance rely on real business performance rather than credit to evaluate applicants. This pragmatic approach allows any stable business to qualify for an advance. Advance amounts typically depend on the business average monthly revenue in the previous year. Revenue - Based Collections. "We get paid only when you get paid,” The slogan captures one of the most compelling advantages of a merchant cash advance over a commercial loan. While the loan requires a fixed monthly payment, Merchant Cash Advance collection amounts fluctuate based on the merchants sales volume. In flush months, the Merchant Cash Advance retrieves a higher monthly sum; in lean times, the Merchant Cash Advance scales back its share proportionally. This percentage-based collection policy allows the Merchant Cash Advance to support the business success rather than draining its funds.
Merchant Cash Advance with Bad Credit
Getting a Small Business Loans with Bad Credit Our economy relies on the small business owner . Your ability to be successful benefits millions of people . However , it can be difficult to find a financing source for your small business if you have bad credit . Lenders are generally reluctant to help until your business is well-established . Perhaps that first start up loan was relatively easy to come across . But once you are operational and have to expand or purchase new equipment , that first loan is long gone . Due to limited cash flow , month-to-month payments might become past due . This only serves to hamper your chances of getting a business loan . That struggle is intensified if your business has bad credit , yet poor credit is typical among new businesses . As a result , the bank isn't ready to assist . Your individual credit score may already be suffering ( the majority of lenders evaluate the combined credit rating of business and personal credit ) . Where does that leave you ? A good idea is to apply for one of our bad credit business loans . Bad Credit Business Loans Business loans tend to be your best choice when you need capital for your small business right away . As opposed to with banks , who might take weeks to make a credit decision , with us you will have quick access to the capital you borrow through one of our bad credit loans . Take just a few minutes to complete and submit our online application . Upon approval , you can have quick access to your unsecured bad credit loan . Not only can we process loans quicker than banking institutions , but we are able to to offer payment options that will be flexible enough to meet your requirements . Absolutely no Collateral Needed The fact that we do not ask you to put up any security shows another big difference between Elite Merchant Capital and going to a bank for a loan . Our bad credit loans are not secured , so you keep control of all of your property . The ability to present you with a quick loan is really what sets us apart . Utilizing our online application accelerates this already fast loan process . And processing your loan in electronic form allows us to offer the quickest loan service anywhere for bad credit business loans . Digital processing removes the need for standard paper work , meaning less hands getting involved to slow the process down . For anyone who is in business on your own , you will have a unique set of financial tools . No matter what the reason you need them for , bad credit business loans provides you with the capital necessary to solve your cash flow challenges . You can use the capital to do the following : Meet payroll Expand Purchase materials Purchase brand-new equipment Make necessary repairs A lot of small businesses fail as they are unable to pay taxes and insurance coverage when they become due . Do not let this happen to your business . We are able to create a bad credit loan to allow you to pay your taxes , insurance and other bills before they become delinquent .
Merchant Cash Advance How it Works
Merchant Cash Advance How it Works Tuesday, 10 March 2015 15:30 Written by Super User Print Email Be the first to comment! Merchant Cash Advance How it Works Merchant Cash Advance How it Works Merchant Cash Advance How it Works Merchant Cash Advance loans are very popular among small business retailers and restaurant owners. The reason why it’s so popular is a unique repayment method. Merchant Cash Advance collection is performed trough hold back percentage on your credit card sales. Here is the basic example: let’s say you acquired $20,000 with fixed payback of $22,000 and percentage collected is 10 percent. First Day customer walks in and buys merchandise for 20 dollars paying cash since merchant cash advance is a purchase of credit card sales any cash sale stays in your business. Tip 1: Merchant Cash Advance provider deducts 10% only from credit card sales not cash sales. Few hours later another customer walks in and swipes credit card transaction for 20 dollars since MCA provider collects 10% through credit card sales only 2 dollars will be transferred to MCA provider and 18 dollars will be deposited into your bank account. Based on scenario above merchant cash advance is a very flexible financial product designed to adjust to business fluctuation. If your business is going trough rough patch and sales decreased payback will adjust to business performance and will pick up ones things got back on track. Tip 2: Merchant Cash Advance does not have fixed term; repayment is proportional to your business performance. The main difference between Merchant Cash Advance and Traditional Bank Loan is underwriting process. In order to obtain small business loan you will have to collect necessary paperwork, business plan and most small business loan providers require collateral. Credit Score is an important factor during qualification process, if your credit is bad most likely your application will be declined by the bank. Merchant Cash Advance is not based on your personal credit and it’s completely unsecured meaning no collateral needed. Simply MCA provider purchases set amount of credit card receivables into the future, this amount will never change. Based on our example pay back amount of 22,000 will never change. It might take you 6 months or 2 years to repay the loan the payback amount remains the same. Timing is quick on average you can receive up to 200,000 dollars in three business days. Tip 3: Merchant Cash Advance is a purchase of future credit card sales and collateral is not required to obtain funds. It takes 2 to 5 business days to complete the process. Payback amount always remains the same. Due to high demand and competition between MCA providers we are noticing increased rate reduction in alternative financing industry, that being said merchant cash advances provide economical and accessible ways for merchants with bad credit to achieve financial and business goals. If you are looking to obtain financing or small business loan for your business and traditional sources reject your application Apply Now we are not a bank we are privately held funding company and we do not care about your credit or past financial history. Our approach is different we believe in you and your abilities to succeed. Explore your options by contacting our support line 877-332-8040
What Is A Merchant Cash Advance?
Is the Merchant Cash Advance a Good Idea for Small Business? A merchant cash advance is a different source of funding for small businesses who can't get a traditional bank loan . When a business can't obtain a bank loan , a merchant cash advance is a practical alternative if a business has a cash flow issue and an immediate need for cash . Banking institutions have been tight with their funds since the beginning of the credit turmoil . As time as passed during the recession , credit has just become tighter .Lately , the Obama Administration strongly urged both large and small financial institutions to boost their lending to small businesses in order to stimulate the economy and accelerate economic recovery . The Facts about Merchant Cash Advances Here's the way the merchant cash advance works . When a business gets a merchant cash advance , the deal is the purchase and sale of future credit card sales . No regular set payments are needed by the business . The lender collects a fixed percentage of the company's daily credit card transactions . The collection goes on until the loan provider recovers what they advanced to the business together with their premium . Generally , the loan provider attempts to collect the advance within twelve months . One other thing that is attractive to businesses about the merchant cash advance is that , when they have a slow sales month , their payment to the advancing company is lower because they collect a set percentage of credit card sales . An additional attractive feature is that there is no actual due date for the advance to be paid off . It is repaid when enough credit card sales are produced for the advancing company to recover the advance and their premium . Additionally , no collateral is required to secure the advance . As a result of tight bank credit , small business owners have had to turn to other options for credit for their capital needs . Merchant cash advances are actually one of these sources . A merchant cash advance is not a credit loan It is a lump sum advance of capital to the business against future credit card transactions . Interest Rate Collected by Merchant Cash Advance Company There is absolutely no interest rate attached to a merchant cash advance because it is not a loan . Instead , the business making the advance collects what they call a premium or a percentage of the credit sales of the company receiving the cash advance . For example , the advancing company may collect 10 cents for each dollar of credit sales the business makes until the advance is repaid .If you convert that into an interest rate , you can see that merchant cash advances can be very economical solution for your business. Is the Merchant Cash Advance a Good Idea for Small Business ? Merchant cash advances are only one of several alternative financing options for small businesses . Just like with any financing option , there are positive and negatives . In a tight credit market , small businesses often have to take funding where they can find it . A merchant cash advance is a type of receivables financing . It is targeted receivables financing with the only receivables used being credit card transactions . A merchant cash advance is not a loan for several reasons already mentioned . Another reason is that if the company goes out of business , the advancing company takes the loss . Merchant cash advances have assisted a lot of small businesses survive , especially throughout the economic downturn . If a business has a temporary cash flow issue or needs instant access to capital , then a merchant cash advance is a good idea Small business survival is critical to the recovery of the U .S . economy . Since the business credit turmoil started , we have observed that if small businesses depend only on commercial banks to fund their business loans , they aren't going to be able to hire employees , buy stock , or fulfill any of their other duties for survival . They definitely aren't going to be able to thrive . Small businesses are scrambling to replace bank financing with other types of acceptable financing .
How Much Funding Can I Get?
Amount is directly proportional to affordability level of your business. If business requires substantial amount of working capital we will extend the program term to keep daily payment as low as possible by delivering highest possible amount.

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