Merchant Cash Advance FAQ

The basics and some facts about Merchant Cash Advances

A merchant cash advance (MCA) is a cash advance given to a company in return for a percentage of its daily credit card receipts. MCAs can typically fund between $10,000 – $1,000,000.

Are merchant cash advances legal?

Alternative Business Finance Options

These merchant cash advances are not loans—rather, they are a sale of a portion of future credit and/or debit card sales. Therefore, merchant cash advance companies claim that they are not bound by state usury laws that limit lenders from charging high-interest rates.

How do merchant cash advances work?

A merchant cash advance provider gives you an upfront sum of cash in exchange for a slice of your future sales. ... Instead of making one fixed payment every month from a bank account over a set repayment period, with a merchant cash advance you make daily or weekly payments thru withdraws from credit card processing receipts, plus fees, until the advance is paid in full.

Are merchant cash advances tax deductible?

The interest paid on an Unsecured Business Loan is an ordinary business expense and is tax deductible.

What is the difference between a loan and a cash advance?

What are the differences between payday loans and cash advances? These are used by people who need to get cash in a pinch, as well as people who want to borrow money but have less than perfect credit. As unsecured, short-term loans, both payday loans and cash advances carry very high interest rates.

These are just a few of the basic questions that come up when businesses are inquiring about merchant cash advances. If you operate a business in the United States and your business accepts credit cards you may be eligible for up to $500,000 in a merchant cash advance.

Northwest Finance Is a reliable resource for merchant cash advances as well as equipment lease financing, contact Northwest Finance today!

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Cafe and Coffee Shop Merchant Cash Advances

Cafe and Coffee Shop Merchant Cash Advances

If you own a cafe or coffee shop fast Business Financing is just a one page application away!

Cafes and coffee shops have the same financial needs as any other business.
Sometimes a slow down in seasonal business can put some stress on the finances of a small services business such as these.

Fast Business Finance

NorthWest Finance takes calls daily from small cafes and coffee shops that just need a little capital to get thru the slow times.

Fortunately Merchant Cash Advances are fast to receive and they suite a lot of businesses needs.

1. The cash received can be used for any purpose.
2. The application process typically takes a business owner less than 20 minutes to fill out and return.
3. Financing once approved can be directly wire transferred to the businesses bank account within 48 hours of approval.
4. A business can receive up t o3 x's their month;y credit card processing volume if needed.
5. Credit scores don;t have to be high in fact just about any credit score can be dealt with.

Once funds are received by a business from a cash advance they can be used for any purpose.

1. Pay down other debt.
2. Pay off taxes
3. Purchase new equipment
4. Take a vacation

There are no restrictions placed on what a business cash advance can be used for. Once you receive the money it is yours to use as you see fit.

If you own a cafe or coffee shop and you have at least $5,000 per month in credit card sales contact NorthWest Finance today.

NorthWest Finance and Merchant Cash Advance US perform cash advances for businesses throughout the United States every day it's all we do and what we do best

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Auto Repair Shops benefit from Merchant Cash Advances

Auto Repair Shops can benefit from a Merchant Cash Advance.

If you are running an auto repair business you know the ups and downs of cash flow. It is a never ending story for most businesses. Auto repair shops have their own set of needs when it comes to periodic financing issues.

Auto Repair Shop Fincaning

A merchant cash advance may be considered an alternative type of financing for an auto repair business. This type of financing is fast and fairly easy to obtain but it may not be for everyone. If you run an auto repair shop and you have a great relationship with your banker you may be able to get any short term  financing you need from that source. If on the other hand you are not that close with your or any banker a merchant cash advance company may come in handy.

It really depends on how you run your business. If you are the type that hates paying cash up front for items your shop needs to grow than this may be the type of financing option that would appeal to you.

For instance some businesses like to lease their equipment. They understand that over the length of a lease they will pay more for the equipment than if they purchased it outright but the advantage of not have any money to pay upfront or being able to write off the lease payments is attractive to some business owners.

In the same respect Merchant Cash Advances are attractive; they are fast and simple to apply for. They are repaid overtime by subtracting a small percentage from the daily credit card sales thus no regular large monthly loan payments. The fees for the cash advance are typically tax deductible. The Cash Advance Company absorbs all the risk and the auto repair company gets the benefit of receiving their financing in a timely manner.

Typically a merchant cash advance can be applied for with a simple one page application, also the borrower is requested to provide at least 3 months card payment statements and 3 months current bank statements. That is pretty much it. Credit scores do not play as big a role in this type of financing as they would in say a typical bank loan.

Auto repair shops that are savvy about running their business have been utilizing this type of financing for years.

If you run an auto repair or related business and you are in need of financing you can contact, North West Finance and Merchant Cash Advance Us. 

Northwest Finance has been offering companies like auto repair shops fast funding since 2012. Get the financing you need and use the proceeds for whatever purpose you see fit.

If your business accepts credit cards and you are in need of a financing partner contact Northwest Finance today!!

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Bars, Restaurants, Nightclubs and Merchant Cash Advances.

Bars, Restaurants, Nightclubs and Merchant Cash Advances.

Do you own a restaurant or bar and are you in need of a financing source to help you with updated equipment? Perhaps you are in need of a new freezer or even new kitchen equipment. If you are not in the best position with your bank due to a low credit score but you still need some capital, consider a merchant cash advance.

Merchant Cash Advances have been helping businesses grow and thrive for many years; in fact in 2016 there were over 9 Billion dollars in MerchantCash Advances approved in the US alone. That is a lot of financial help going to small businesses of all types across the United States.

Merchant Cash Solutions

Restaurants Bars and Nightclubs often find themselves in need of cash flow that may be hard to find from a traditional lender. Banks like to see lots of paper work, they need to see past history and forward looking statements. Being in the hospitality business has always been risky for banks so they tend to make it difficult for borrowers.  

This is very unfortunate as most bar and restaurant owners pride themselves on running respectable businesses. Some reasons for capital needs simply run beyond their control.

Seasonal Slowdowns

It is easy to see how a hospitality business in a seasonal area may have difficulty carrying on thru the slow months. When it is summer and people are out doing the tourist thing ice cream and hot dog businesses thrive, so do nightclubs and restaurants. But what about when the crowds go away and the businesses are holding on relying on a fraction of the summer business totals? Do you think the bankers are going to jump in and help?

Merchant Cash Advance Companies like NorthWest Finance see this as an opportunity to reach out and provide an option to help thru the slim times. Businesses should know there are companies out there that are willing to take the risk and provide resources to float a business thru the hard winter months in time like seasonal drop-offs.

Restaurants Bars and Nightclubs can spend the down time upgrading systems like production facilities, kitchens, bathrooms dining areas etc. This down time can also be used for retooling menu’s or adding management to bolster their reputation.

All of these things take business capital and companies like Northwest Finance can offer that stability. It is as reliable as the sun rising and setting businesses are going to face seasonal downturns. Look at it this way if you live in an area that has awesome mountains and provides incredible skiing, your summers may be slow. In the opposite if you live in an area that get’s heavy foot traffic and you have a downtown area that relies on summer tourists your winters may be slow. It’s all about evening out those bumps and keeping the doors open until the next rush.

Successful companies utilize all the resources at their disposal and Merchant Cash Advances can be one of those arrows in the quiver.

Companies like Northwest Finance work with businesses nationwide. All types of businesses. If you accept credit cards you can be financed. Contact NorthWest Finance Today!!

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Why a merchant cash advance is not a loan.

Why a Merchant Cash Advance from Merchant Cash Advance US is not a loan.

Many things separate Merchant Cash Advances from loans. A merchant cash advance is in fact a totally different form of financing that serves the same purpose as a loan getting the business owner much needed capital, but it is not structured as a loan.

Merchant Cash Advance US cash advances are not loans—rather, they are a sale of a portion of future credit and/or debit card sales. Therefore, merchant cash advance companies claim that they are not bound by state usury laws that limit lenders from charging high-interest rates.

Why would I need a merchant cash advance? This type of businessfinancing is typically used by people who need to get cash in a pinch, as well as people who want to borrow money but have less than perfect credit.

Since this is not a traditional loan there is not a traditional interest rate that is calculated. In fact since you are borrowing against future credit card sales to calculate the costs of a merchant cash advance it is pretty simple. First need to know the total advance amount and your factor rate—(those should be easy to find in your merchant cash advance offer). You'll also need to know the fixed percentage the merchant cash advance company will take from your daily credit card sales. An MCA is advantageous for businesses with unsteady cash flow or seasonal business cycles, as it's not a fixed amount of money demanded each day, but a percentage of your sales.

Is a cash advance tax deductible?

That really comes down to how your business is set up. IT will be a simple question you can ask your accountant. In a nutshell merchant cash advances have a neutral effect on the taxation of the business; you can deduct the fees paid to the cash advance company as a business expense, a cash advance will not shelter any of the business's income from taxes, but neither do they subject it to any more taxation than it otherwise would be.

Merchant cash Advances can be used for any purpose?

Yes once you have received your cash advance you are free to do with it what you will. In the application process there is no predetermined usage necessary. Typically a business needs some fast cash to get thru a slow period or to pay off some back taxes. Other purposes may be to hire some new employees increase inventory or purchase a piece of equipment.

What types of businesses qualify for a merchant cash advance?

Many types of businesses qualify for this type of financing. Essentially if you accept credit cards you qualify! Auto services businesses, retail businesses, and wholesale businesses and online businesses, high risk businesses as long as you accept credit cards and have at least 3 months of statements you can qualify!

How long does it take to complete the application process and get funded?

Since a Merchant Cash Advance is not a loan it is faster than traditional lending. Typically a one page application and 3 months of processing receipts will get you funded in as little as 72 hrs! The money once approved is electronically transferred directly into your bank account.

If you are interested in a merchant cash advance and your business is located in the United States contact Merchant Cash Advance US. A Fast Friendly, Professional Merchant Cash Advance Company.

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Why Merchant Cash Advances?

What exactly is a Merchant Cash Advance and how can it be used to benefit my business?

A Merchant Cash Advance is an alternative to a traditional business loan. In exchange for cash up front, your business agrees to pay back what you owe as a fixed amount from your daily credit card sales until the debt is settled. This is also referred to as “credit card receivable funding” or “credit card factoring”.

Merchant Cash Advances pump quick cash into your business to give you the resources you need to grow, create fast output, complete a large-scale job, or update whatever you need. Once you are approved, what you do with the cash is up to you. Apply for a Merchant Cash Advance Now!

How can a Merchant cash Advance Benefit My Business?

A merchant cash advance is a business loan alternative that provides you with flexible finance in the event of an unforeseen emergency or sales slump. Think of it like a financial reboot — a way to kick-start your finance in the short-term. Here's how a merchant cash advance bridges the gap between now and your next big payday.

A Merchant or Business Cash Advance as they are sometimes called can be used for any purpose. Pay Back Taxes, Purchase Equipment, Hire Employees, Take a well-earned vacation. It’s your money to be used in any manner you see fit,

Businesses need help sometimes and we understand that it’s hard to ask for help. NorthWest Finance makes the application and funding process as simple as possible. Typically a business fills out our 1 Page intake form. From there we determine depending on several factors how much financial information will be needed. In most cases all a business would have to supply is 3 months current bank statements and 3 months current credit card processing statements.

If a business has bad credit or has existing cash advance outstanding there may be additional months requested but that is unusual.

Once the information is submitted to underwriting a proposal is drafted. This proposal outlines the amount the borrower can receive and how long they have to pay is back.

MerchantCash Advances are not loans so there is no interest rate. The cash advance company will take a daily percentage of the card processing batches until the advance is paid off.

This gets you the funding you need and still allows you to have access to the majority of your daily card processing proceeds.

There are some companies out there that require you to switch your card processing services to them so they can

Take over that process from your existing vendor. This can cost you money in cancellation fees new equipment etc.

With NorthWest Finance that is not the case. We do not need your card processing business to grant your funding request. In fact we strongly suggest you keep your current card processing vendor to save money!

If you are in need of a alternative to conventional loans for your business contact NorthWest Finance, Merchant Cash Advances Nationwide.

NorthWest Finance

612-615-8196

www.merchantcashavanceus.com

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Merchant Cash Advance Advantages

A Merchant Cash Advance is the ideal alternative to traditional loans for smallbusinesses. The credit program allows small businesses to get instant cash access that they can use to fund their operations. The importance of merchant cash advance is indeed great.

Pros of Merchant Cash Advance

1. Instant Approval within 24 hours – The best thing about merchant cash advance is that you can get instant access to cash in as little as 24 hours.

2. No Application Fees – Another benefit of merchant cash advance is that most lenders do not charge any fees on submitting loan application.

3. Minimum Paperwork Required – Merchant cash advance require minimum paperwork and documents. You can obtain the funds easily without the need to submit various documents as is the case with traditional loans. 

4. Flexible Repayment Option – One of the great benefits of merchant cash advance is that you can repay the amount at convenience. Unlike traditional loans, there is no strict repayment schedule of merchant cash advance.

The Bottom-line, a merchant cash advance greatly helps in easing financial burden of small business concerns. Small businesses can gain instant access to cash flow whenever required. The best thing about merchant cash advance is that it requires no collateral, application fee, or high credit score. What’s best is that you have flexibility of paying the amount at convenience when the revenue increases. In short, merchant cash advance can serve as a financial lifeline for small businesses.

A Merchant Cash Advance pays a Business owner up front for a portion of future credit card based sales. A portion is paid back daily weekly monthly until the business cash advance is paid off.

Many types of businesses participate in this type of financing, Including

• ·        Auto Repair Shops
• ·        Beauty Salons
• ·        Convenience Stores
• ·        Liquor Stores

And just about any type of business that accepts credit cards.

If you have a Business that accepts credit cards and you are in need of a cash infusion contact NorthWest Finance. We execute Merchant Cash Advances for Businesses all across the United States.

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