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24 Replies Latest reply: Jan 27, 2009 10:13 PM by funds2924 RSS

Capital Advance (Cash advance)

central Newbie
Currently Being Moderated
I own a few stores and two small restaurants. I was looking for capital to expand my businesses and of course the bank only wanted to give me around 75%-80% of what i needed. I got in touch with a company that does cash advances, what they do is "by your future credit card sales today for a discount". The rep told me there is no intrest rate just a pay back, no collateral no guarantee. They base it on you credit card sales and everytime i batch out they take a small percentage that goes towards the payback amount. Did anybody ever go through which such a program? any advice / ideas?

Thank you
  • Re: Capital Advance (Cash advance)
    LUCKIEST Master
    Currently Being Moderated
    Central, It almost sounds too good. You are a business man who own stores and restaurants, so you
    know the ropes. Do you have an Accountant?? A Lawyer?? Ask them. Have the Lawyer check out
    the contract before you sign.
    Also ask the rep or the company for references.
    Good luck, Be CAREFUL, LUCKIEST
    • Re: Capital Advance (Cash advance)
      CorpCons08 Master
      Currently Being Moderated
      I agree with LUCKIEST. If it is too good to be true, chances are it is.
      ALL businesses are in business to make money. They would not lend money and not get something in return.
      Perhaps they don't want interest, but you have to promise them your first born child.

      CC08
  • Re: Capital Advance (Cash advance)
    merchant1 Newbie
    Currently Being Moderated
    Hi Central,

    I represent Envision Merchant Capital a merchant cash advance company. This is a very good way to expand. You can get up to $250,000 per location depending on your profile and credit card volume. If you would like to talk about it more, please feel free to contact me via my profile.

    Best of luck

    Jason Parker
  • Re: Capital Advance (Cash advance)
    YMC RVP Newbie
    Currently Being Moderated
    Central,
    As yourself i am new to this forum. I offer these kinds of programs to merchants just like yourself on a daily basis. It seems to me you understood the blueprints of the program. There is no catch, what happens is that the money you are being advanced is expensive. Depending on your monthly average credit card sales you will pay back a 1.24, 1.38, or even a 1.48. Just multiply the amount you are being advanced by one of these factors i.e. 50 000 * 1.38 (which is the most popular factor rate) 69 000, meaning to borrow 50k it will cost you 19k. It is true there is no intrest rate because there is no period no 1yr 5yr 15yr the loan gets paid back through your credit card sales. Everytime you batch out 15% to 20% of your gross revenue goes towards the payback amount, meaning no monthly payment no specific time frame to payoff the loan. The lender gets paid back only if your business grows and continues to do well. Remember the reason it is expensive is because there is no collateral no guarantee. If ever you choose to go through with this or if you have any questions do not hesitate to contact me.

    Eric ,
    Regional Vice President
    Your Merchant Company LLC
    o-866-529-0259
  • Re: Capital Advance (Cash advance)
    samuelsegal2 Newbie
    Currently Being Moderated
    If you are shoping for Capital Advance please call me at
    877-274-7933

    Sam Segal
  • Re: Capital Advance (Cash advance)
    danielb Newbie
    Currently Being Moderated
    I connect businesses to this type of loans. Yes, it does work and it is quick
  • Re: Capital Advance (Cash advance)
    SageTrout Newbie
    Currently Being Moderated

    The program you are describing is called a Merchant Advance. Depending on your credit card sales, you can receive an advance up to 125% of your average monthly MasterCard and VISA sales. For example, if your average MC and VISA sales are $40,000 a month, you can get an advance up to $50,000. The repayment is made through your merchant account. You sign an authorization to have the payment made as sales are credited to your merchant account. The amount is a fixed percentage of your MC and VISA sales until the advance is repaid.

    It's untrue that there are no interest charges. The interest is a fixed amount determined at the outset of the advance. The interest charge assessed is a function of the type of business, credit rating, and other factors.

    To qualify, you need to meet three requirements. 1) Must have been in business for one year (two years for advances over $75,000) 2) Average MC/VISA sales must exceed $2,500 a month 3) Must have at least one year remaining on the lease for your business location or own your property.

    The advantage to this type of financing is that 1) it's relatively quick to obtain - generally I can get an approval within two business days 2) there are no restrictions on the use of funds - you can use the money for working capital, new equipment, and other needs. 3) it's nonrecourse financing which means that unlike a mortgage secured by real estate or a loan secured by equipment the lender can only look to your merchant account for repayment - if your business fails you can walk away.

    Another advantage is that a Merchant Advance does not affect your ability to apply for other types of financing. You can still apply for loans and leases provided your business qualifies for them without being affected by the Merchant Advance.

    Because this is nonrecourse financing it's not inexpensive. If you need financing and you can't qualify for a loan or a lease, or it will take too long to obtain them, then you should consider a Merchant Advance.

    I offer the lowest rates you'll find anywhere on a Merchant Advance. I also have a special program for restaurants. If you'd like to know more, please send me an email and I'll contact you. My address is DougA@equitycorpfinance.com

    Best wishes, Doug
  • Re: Capital Advance (Cash advance)
    M&M Services Newbie
    Currently Being Moderated
    Hi this is Marcus Walker, I would like to invite you to start or better your Merchant Services with us.
    M&M Merchant Card Services offers safe, reliable credit card processing With backing banks such as Bank of America, Chase Manhattan, Wells Fargo
    etc.Please
    do not let other companies confuse you based on name alone! Our
    services are rated much higher than PAY-PAL, Quick books and other
    companies based on security, network down time and more importantly
    RATES are much less than these companies
    . We work with all types of merchant accounts to provide trusted POS
    systems to aid in billing of the customers and clients. By working with
    leading name brands such as Hypercom™, Lipman™, Tranz™, and
    Verifone™. Our Company provides merchant accounts nationwide from
    coast to coast. Our team will work one-on-one with you to help you
    make "Profitable" decisions based on your needs and budget.

    We offer the sale and lease of all credit card terminals, from counter top to wireless. We establish on line processing for clients with web-sites, EXTREMELY
    lower and more reliable than pay-pal
    .

    **ATM machines
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    **Check guarantee and conversion ( turn paper
    checks to electronic transactions).
      • Capital Advance ( Cash Advance )
    If
    you have any questions please feel free to contact our support dept.
    listed below.


    Marcus Walker
    M&M Merchant Card Services Inc.

    866 351-1627 Office
    770 994-9295 Fax


    THANK YOU.
  • Re: Capital Advance (Cash advance)
    financeguy Newbie
    Currently Being Moderated
    This sort of financing is not too good to be true. I do these sort of transactions all the time. They are quick simple and fast.

    I am short on time, if you have more questions or would like some free advise, drop me a line.

    financeguy@avalonfnd.com
  • Re: Capital Advance (Cash advance)
    thegrillplace Newbie
    Currently Being Moderated
    I would check out the merchant cash advance forums www.mcaforums.com which has some resourceful info on there. it seems to offer somewhat of good information and resources. You can probably interact directly with MCA providers and get answers on an open forum.
  • Re: Capital Advance (Cash advance)
    BizLOC Newbie
    Currently Being Moderated
    Good afternoon,

    My name is Paul Warshawsky and I am an independant agent for www.fastmerchantadvance.com. I was wondering if you were still looking for a cash advance. If you have any questions, or are still in need of funding please contact me at any time. If you have already been funded and are no longer in need of an advance, please feel free to pass on my information to some one that may need it. Everyone enjoys referalls. Thank you in advance, and I look forward to hearing from you.

    Sincerely,

    Paul Warshawsky

    251-622-8187

    pwarshawsky@gmail.com
  • Re: Capital Advance (Cash advance)
    MarkSLF Newbie
    Currently Being Moderated

    Although their is no interest or no collateral there is a cost. Your future credit card sales are puchased at a discount. Typically a payback of around 1.35 is the norm for 6-9months. Equate this to an interest rate would be very substantial. This type of financing definitely has its place but there are other alternatives available. A Fast Cash Small Business Loan runs about 1/3 of the cost of a merchant cash advance. It is harder to get approval for then a merchant cash advance but easier then bank financing. Here is a link for more information on this type of loan. http://www.spotlightfinancial.biz/Small_Business_Loans.php
  • Re: Capital Advance (Cash advance)
    GETCAPITAL Newbie
    Currently Being Moderated
    Hi Central, I can assist with merchant sevices as well. We also offer equipment leasing which may become a solution in contributing to your goal of expansion. Let me know if I can assist.

     

    Thanks,

    Patrick Gray
    Homecoast Capital
    Phone 302-565-4233
    Email pgray@homecoastcapital.com
  • Re: Capital Advance (Cash advance)
    nuguy93 Newbie
    Currently Being Moderated
    Is is possible to get a MCA with a month to month lease? I have been processing credit card for over 4 years.
    • Re: Capital Advance (Cash advance)
      Nusantara Newbie
      Currently Being Moderated
      This post in response to nugy93. You may qualify business funding instead MCA. you can qualify up to $100,000.
      *Y
      our company is a good candidate if you have a separate business bank
      account,
      you should have been open for
      business for at least 1 year and have an average business bank
      account balance of at least $3,000 per month.
      +_THE LEND

      +We may able to help you to get funding.Please contact us.+<br /<font>
      Business Financing Broker
      169-24 Hillside Avenue 2nd FL
      JAMAICA, NY 11432
      P : 1 888.307.8430
      Local : 718.785.9615
      Fax : 718.523.1116
      EMAIL : enusantara@aol.com
  • Re: Capital Advance (Cash advance)
    daser007 Newbie
    Currently Being Moderated
    Hello Central,

    You are right on target. By turning future credit cards into cash you can get the down payment needed easily and with a fast funding process.

    If you need help getting your merchant cash advance feel free to contact me at http://merchantcapitalexpress.com/">http://merchantcapitalexpress.com
  • Re: Capital Advance (Cash advance)
    capitalbankca Newbie
    Currently Being Moderated

    I CAN HELP YOU!

    LISA LAING
    CAPITAL BANK CARD
    FUNDING SPECIALIST
    954-394-5387
    954-414-8393 FAX
    BUSINESSCASHSOLUTIONS@YAHOO.COM
  • Re: Capital Advance (Cash advance)
    funds2924 Newbie
    Currently Being Moderated
    I do not know if you have made a decision on your processing or cash advance. check out www.innovativereturns.com we have good rates on processing and cash advances will beat anything you have been quoted.

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