It is easy to understand how a business cash advance works. Small business owners can have constant access to funds, simply by following four easy steps.
Applying consists of completing a two-page application and submitting the last four months of your merchant statements, along with a copy of your business lease and a voided check.
If your business processes at least $ 5,000 in credit card sales each month, you've owned it for six months or more and you have at least one year left on the property lease, you will most likely be approved for up to $ 500,000.
Your application can be approved in only 48 hours.
Once you have been approved, funding only takes about a week. Your business cash advance provider will wire the funds into the account of your choice, then you are free to use them however you please, because typically, there are no restrictions on fund usage.
Repayment begins as soon as you are funded and your business begins to process credit card sales. Fixed monthly payments with interest are not required, because payments are automatically deducted as a small percentage from daily credit card sales. It usually takes about eight months for an advance to be repaid. Still, should the advance be repaid sooner than eight months, there are no penalties. Likewise, there are no penalies if it takes more than eight months to repay the advance.
Renewal opportunities are one of the most unique features of the business cash advance. When merchants reach 60 percent repayment (usually about 3 months months after funding) they become eligible for renewal. Merchants can have another sum of cash wired into their accounts in as little as 24 hours. They do not even need to submit another application.
Now that you understand how a business cash advance works, you can search for a business cash advance provider that works for you and get up to $ 500,000 in business funds.