But even with the discounts, you still might be able to find lower fees elsewhere — though the credit requirements may be tougher for lower-cost options.
Most merchant cash advance repayments are daily, although a few vendors accept weekly payments. These are automatic credit card payments, so you may have to switch to a different card terminal provider that supports your financer.
With Square Capital, Square offers MCAs to businesses that use their platform for payment processing—and because Square works with select borrowers using their service, these merchant cash advances are more affordable than other options.
MCAs are an alternative method of financing, unlike a traditional small-business loan offered by business lenders.
Although Kalamata Capital Group has higher qualification requirements compared to some of the other merchant capital advance companies on our list, their factor rates also start pretty low, at only 1.
In terms of fees, Libertas charges a 3% administrative processing fee, as well as factor fees which vary based on your business qualifications. Additionally, Libertas offers both prepayment and loyalty discounts.
Essentially, the more sales you make, the more money you pay back each day or week. The reverse is also true. Also, the lender will typically calculate an estimated repayment period based on your sales history.
You Deal Mostly In Cash: Merchant cash advances require a fairly high level of credit card sales for their model to work. If you mostly do business in cash, the model won’t work.
Instead, MCAs are regulated by the Uniform Commercial Code in each state. This limited regulation has often led businesses to fall victim to predatory companies that use misleading marketing and sales tactics, offering instant approvals and funding.
If you receive an MCA agreement from a provider, it should clearly lay trasnochado terms and conditions, fees and repayment information. In addition to talking to the company, reading reviews and reaching demodé to other business owners can help you verify the reputation and reliability of a merchant cash advance company.
In terms of MCA fees, you’ll pay 10% to 30% of your Fast Approval daily PayPal sales plus a flat fee determined by the daily percentage, loan amount, and PayPal sales history with this merchant cash advance loan application product.
These requirements are not always mandatory. For example, some lenders do not check your credit score, especially if you have a high volume of transactions. Others may even work with you if you have filed for personal or business bankruptcy in the past.
Reliant Funding does not have a minimum credit score requirement. This financer focuses more on your sales track record. You will need to have been in business for at least a year and have annual revenue of at least $100,000.
While I’ve seen lower fees on other similar products, its fees are relatively standard. It also only offers advances up to $25,000, which Apply Here is low for a merchant cash advance company.