Merchant Cash Advance

That’s a great question and one that is easily answered. The vendor who issues the merchant cash advance institutes the agreed upon percentage which is automatically deducted from the actual sale at the time it is processed. There is nothing for you to keep track of. Statements are sent to which account for each transaction and advise you of the totals and balances. In some cases, the sales are split with part going to the business owner and the other part going to the financing vendor. Usually, the merchant cash advance is deposited into the finance companies account and then redeposited back to the merchant, but, it’s a less desirable method as it creates a delay in the funds getting back to the merchant.

That can be determined by the amount of time it takes to repay the merchant cash advance. When sales are slow, the repayment will be slow, which means the advance will take longer and cost more than expected. In addition, if the majority of sales are not from credit or debit cards, that too will slow down repayment and increase the costs. Even though it is a quick type of loan, and there is no threat of losing your home, it’s still something that has to be watched closely to ensure it doesn’t get out of hand. The best time to apply for a Merchant Cash Advance is before you need it. Don’t waste time and allow things to slip even farther behind, call now to ensure you have the funds that you need when you need them. Call Clover Capital today and get your approval now!