Home Merchant Cash Advance Merchant Loans FAQ Contact

Exactly how long does it take to pay off a merchant cash advance?

The short answer is 6 to 9 months. Are you ready for the long answer?

If you are a business that processes $10,000 a month in credit card sales; then you are eligible for a $15, 000 to $30, 000 cash advance. This is from a typical merchant cash advance provider under normal circumstances.

Most providers will look at your daily credit card sales and determine a percentage of those transactions to take out over the course of 6 months. In some cases they will extend the payment over the course of 9 months.

A common figure used to pay back the merchant loan is 15 to 20 percent of your daily credit card sales. Keep in mind that it is only your credit card sales; not cash transactions. It is important for the merchant loan provider to give the business only what they feel they can afford. Because these advances are unsecured, the continued success of that business is in the best interest of both parties.

It is not uncommon for a business to take out another cash advance once their debt is about 60% paid off. In fact, about 75% of businesses that use a cash advance use the service again. Many consider it an alternative to a business line of credit if they fail to meet the banks criteria for small business loans.

It is precisely this reason that they use a merchant cash advance instead of getting a bank loan; they fail to qualify. It could be because they had questionable credit, their business is too new or they simply do not have collateral. And getting a bank loan just keeps getting tougher and tougher.

Leading merchant cash advance providers strive to promote best practices. It is very important for the entire industry that they promote these best practices so that the merchant cash advance industry will continue to grow. Word gets around and rogue third party brokers are not in business for long.

How does a merchant cash advance work?

	First, submit our easy two page application along with 4 months of your merchant statements.
	We will make an approval decision in less than 24 hours. If approved, your funds will be available in as little as 7 days.
	You will continue processing credit cards as usual and the repay is automatically deducted as a small percentage from your future credit card sales until it is paid back.
	Renew every 4 months and grow your business! Over 85% of our customers renew their merchant loans.