Frequently Asked Questions
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.
This all depends on you. If you are able to provide the requested information promptly, Americapital 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.
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.
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.
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.
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.
ou can receive between $5,000 and $1,000,000, depending on your business.
In order to receive a conditional approval, you will need to complete an application and provide three months of business bank statements.
While we typically work with businesses that have been in operation for at least 12 months, Americapital Direct 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.
Yes, you will! By referring other merchants that we end up funding, you will receive a better rate on your next cash advance.
AmeriCapital Direct serves the 98% of businesses that the banks deem too small, and too risky to lend to. As a result, small businesses haven’t been able to get essential financing to grow…until now. We’ve worked with small business owners across the country to get them the funds they need, at a price they can afford.
We work with you to determine the best way to meet your business’ needs, because every business is unique. With AmeriCapital Direct, you’re not just a number. We know you’ve poured your entire life into the success of your business—it’s how you provide for your family. We take the trust you put in us to help you get to the next level seriously, and act as a trusted partner to help find the right financing solution that works for you.