There is an alternative style of Merchant cash advance that offers higher funding amounts, longer terms and monthly payments.  The down side of this program is that it is only offered in certain states.  But if you happen to be one of those lucky small businesses in one of the approved states, you have a better choice. The good news for the less fortunate is that new states are added all the time.

LIke the regular Merchant Cash Advance, low credit scores (down to 500) are ok, newer businesses (at least 90 days) are acceptable, and the main course of underwriting is daily and monthly balances in the business checking account. As part of the underwriting process the Underwriter will sign in to the online business checking account while on the phone with the borrower and after this review the borrower will either be approved or declined based on the stability of the account. With a typical merchant cash advance the online connection is usually done after the approval process and after the borrower has signed the contract and prior to funding.

The one key to this is that although the terms can range up to 10 years it is best to utilize as a short term need. The longer you stretch it out the more you pay in interest, which can get really high. This high interest rate will make the advance non-sensible as a business option.  But keeping the term short, 1 to 2 years depending on the funding amount can make it useful cash flow to build your business.

Highlights 

* Funding from $3500 – $250,000

* Same day Funding

• All for Profit Businesses considered 
• Credit Cards and cash deposits considered for monthly income 
• Affordable Payments with 24-120 Month Terms 
• No Prepayment Penalties 
• Funding in as little as 4 Hours 
• Minimum of 25% ownership 
• Minimum 3 months in business with 3 complete bank statements 
• Minimum 500 FICO

Program 1 

Loan Size $3,500 – $250,000 

Term 24 to 120 months (2-10yr) 

Origination Fee 5% to 10% of the loan amount 

Interest Rate 24% to 149% per annum 

Payment type Monthly ACH 

Prepayment Allowed with no penalty 

Security Unsecured- with Borrowers Personal Guarantee 

Eligible States: AL, AZ, CA, DC, DE, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MO, MS, NC, NE, NH, NJ, NM, OH, OR, SC, UT, VA, WA, WI and WY

Program 2

Loan Size $4,000 – $60,000 

Term 6 to 12 months 

Origination Fee 14% to 35% of the loan amount 

Interest Rate 0.0% per annum 

Payment type Monthly ACH 

Prepayment Allowed with no penalty 

Security Unsecured- with Borrowers Personal Guarantee

Eligible States: AL, AZ, CA, DC, DE, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MO, MS, NC, NE, NH, NJ, NM, OH, OR, SC, UT, VA, WA, WI and WY

Easy Qualification

Time in Business 3 months+

FICO 500+ (600 preferred)

Bankruptcy Discharged Only; No Open BK or Dismissed 

Business Type No restrictions, sole-prop OK;

For-Profit businesses only 

Ownership % Minimum 25%

Submission Requirements

1. Submission Sheet 
2. Application 
3. Drivers License or State Issued ID 
4. Voided Check 
5. 4 Months Bank and Processing Statements

Our next module will be on consolidation loans that can greatly reduce your daily payments on standard Merchant Cash Advances. This alternative method also offers an option to consolidate the stacking of MCA’s and offer you a monthly payment that can reduce your payment by as much as 70%.  If you are interested in obtaining financing for your business or you just have questions, please contact us at info@ebizmore.com. Remember at Ebizmore you will Learn More, Do More and Earn More.