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Merchant Cash / ACH Advance

Merchant Cash Advance and ACH Cash Advance are two types of financings which provide lump sum cash today based upon projected future sales of your business.

Merchant Cash and ACH Cash advances are one of the fastest and easiest types of financing for small business owners to access.  Because of the exceptional high risk to providers of these types of financing, however, they are also the most costly.

High Risk to Providers--High Cost to Business Owners

Merchant Cash and ACH Cash advances represent high risk financing methods to providers.  Most are structured as purchase and sale transactions and not true loans.  There are typically NO PERSONAL GUARANTEES required for these types of financing and should your company fail before the financing is repaid, there is no recourse to you as the business owner.

Repayment of Merchant Cash and ACH Advances is typically made by daily cash transfers to the provider based on sales.  The repayment term is typically short 6-8 months although some can extend to approximately 1 year.  There is no set interest rate or daily repayment amount but the repayment is based on a multiplier called a "factors" which is typically 1.3 to 1.6. which means if you are advanced $20,000, you will repay up to 1.6 times that amount or $32,000 in a very short period of time.

Uses Merchant Cash / ACH Advances

There are really no limitations on what you can use Merchant Cash / ACH Advances for, although most that elect this type of rather expensive financing are focused on facility expansion, rather than just everyday working capital.  Typical uses of term loans are for...

Applying for Term Loan Financing

As always, small business owners are encouraged to apply at their local community bank for financing alternatives.  If your application is accepted, this will be your most advantageous cost of funding.  As the vast majority of such loan applications are declined, however, you will likely need to seek access to alternative commercial finance providers.

In the case of businesses operating on a B2B basis and invoicing their customer, you should always explore accounts receivable factoring as a relatively inexpensive alternative to Merchant Cash or ACH financing.

Enlisting the Assistance of a Commercial Finance Consultant

Enlisting the assistance of a professional Commercial Finance Consultant can...

Virtually all Commercial Finance Consultants provide free consultations and in most cases, all placement fees are paid by the lender and not the small business owner.  This means for those businesses in urgent need of growth and working capital, the services of their highly-trained consultant come at very little or no cost.

Find a Consultant to Work With Now!

You can find a professional Commercial Finance Consultant to work with and assist you in your search for business financing by selecting your location from the Search Box (upper right) which provides a direct link to the the consultant's business website.  Once contacted, you could be just a few days away from accessing the growth and working capital your business enterprise needs and deserves.