How do I repay a Cash Advance?
The payback of a Merchant Cash Advance is fully automated. There are no monthly checks to write or payments to worry about making on time. There are two ways:
1. A daily fixed ACH debited from your bank account.
2. The payback is all handled through your credit card processor by creating what’s referred to as a “split” or “hold-back” where a set percentage of your daily credit and debit card sales are routed to the merchant funding company. Getting this split in place may or may not require a new credit card processing relationship.
How is a Merchant Cash Advance different from a loan?
Time: a business loan can take between 3-5 months to get your funding whereas you can be funded in 3-5 days with an advance from AmeriCapital Direct.
Collateral: a business loan will typically require that you provide some kind of collateral to secure your loan whereas a cash advance does not require collateral.
Approval: business loans require that you have a near-perfect credit record to get approved whereas you can qualify for a Merchant Cash Advance even if you have bad credit.
Convenience: Rather than making monthly payments, a Merchant Cash Advance is paid back automatically as customers use their credit cards at your business or through a daily ACH.
Flexibility: Instead of paying back a set amount each month, you pay a set percentage of your sales each month, so you pay less when you have a bad month and more when you have a great month.
Obligation: Your advance will be repaid within a year, whereas a business loan can go on and on for 5-10 years.
Promise vs. Purchase: An advance is not a loan. Instead of promising to pay back the borrowed amount at a set interest rate, you are selling your future sales for a discounted price.
How soon can I get the money?
This all depends on you. If you are able to provide the requested information promptly, Snap Advances is usually able to provide funding within 3-5 business days. Once your business has been approved and the processing relationship has been finalized, the funds will be directly wired to your business checking account.
How much money can I receive?
You can receive between $5,000 and $1,000,000, depending on your business.
Will I be able to receive additional funds in the future?
You certainly can. After you have paid off more than 50% of your advance and are in good standing, you can apply for additional funding. In fact, since it is so easy to do and so beneficial to their business efforts, a high percentage of our customers return to take advantage of additional funding opportunities. Even better, receiving additional funding for your business can happen in a matter of hours instead of days.
What documentation do I need in order to receive a cash advance?
In order to receive a conditional approval, you will need to complete an application and provide three months of business bank statements.
Can I get a Cash Advance with bad credit?
Absolutely. While your personal credit may affect your advance rate, we care much more about the performance and future of your business than we do about your personal credit history.
How long does my business have to be in operation in order
to receive a cash advance?
While we typically work with businesses that have been in operation for at least 12 months, Snap Advances is one of the few Merchant Funding Companies that works with new businesses. The amount we can extend as a first advance is lower for businesses younger than a year old, but we are happy to do all we can to help you succeed.
Does my credit need to be reviewed?
Yes, but this information does not carry as much weight as it does with other funding options. With AmeriCapital Direct, a business owner’s poor or damaged personal credit history is not an automatic decline for the business. Many businesses that have trouble obtaining capital from banks will qualify for a Merchant Cash Advance from AmeriCapital Direct.
I have friends who are business owners. Will I benefit by referring them?
Yes, you will! By referring other merchants that we end up funding, you will receive a better rate on your next cash advance.