Merchant Cash Advance

Competitive interest rates
Fast approval process
Access to funding in as little as 24 hours
All types of credit eligible
Low paperwork demands

How much do you need?

Business cash advance for when you need it the most.

Get Working Capital To Help Your Business Grow

In the business world, working capital is a vital ingredient to operational success. Companies both big and small need sufficient cash to scale growth, get through slow seasons, purchase equipment, and more.

Compared to large companies and corporations, small and medium sized businesses tend to have fewer financing options available and higher loan denial rates. Access to funding can be crucial, but difficult to find.

Fortunately, online lenders, like Clarify, are on a mission to help bridge financing gaps. Merchant cash advances (MCAs) provide short-term solutions for small businesses wanting immediate access to funds. For companies in need of a lump sum payment, a business advance can be a lifeline.

MCAs have the advantage of being fast. We understand that time is of the essence. Funding is instant, taking just 24-48 hours, so you’re not left waiting.

Get the financing you want on our marketplace of 75+lenders. Our streamlined approval process is easy and quick, so you can spend your time where it counts most.

Top Merchant Cash Advance Uses

We provide financing to companies from different industries with wide-ranging needs and goals. It should be no surprise that there’s not just one single use for funding. Cash can be allocated however business owners see fit, so long as the money goes towards business-related expenses. The following are some of the most popular uses for merchant loans:

Inventory Needs

Purchasing inventory in bulk can be a pricey, but necessary part of business. As a retailer, inventory is essential. If you’re in retail, for example, you need products to make sales. An MCA can provide the means for purchasing, so you can maximize revenue.

Unexpected Costs

When unanticipated expenses arise, they can wreak havoc on cash flow. An infusion of working capital helps you take care of your most pressing needs. Business advances allow for fast distribution of funds, so you can take care of your needs promptly. We understand you need to keep things moving.

Pandemic Assistance

Short-term relief has been essential for business owners during COVID19. Some business owners have had to buy expensive PPE to keep staff safe, while others have experienced a change in revenue. If you’re experiencing hiccups in your business cycle due to coronavirus, you may be eligible for a pandemic loan.

Making Payroll

Finding the right talent is half the battle of running a successful company. Having to let staff go prematurely can hurt a business’s bottom line. Financing helps owners avoid unnecessary layoffs and furloughs.

Purchasing and Renting Equipment

Getting equipment can be expensive. To avoid eating up cash reserves, owners have the option of financing their purchase rather than buying machinery out-right. Using a merchant loan can help you avoid tapping out your cash buffer. That way, you still have a financial safeguard for the ups and downs that come with running a business.

Commercial Rent

Maintaining a physical store location often comes with a whole slew of additional fees and expenses. When revenue temporarily dips, additional funds can help you make rent on time.

Operational Costs

Overhead expenses tend to eat up a lot of cash on hand. While they’re necessary expenses, they can be overwhelming during periods of reduced sales or low profit margins. Receiving funds ahead of time can help you catch up on regularly occurring operational expenses.

Growth and Expansion

Like the old saying goes, you have to spend money in order to make money. Investing in your business can help you bring things to scale and build out your empire. As your company expands, you can repay borrowed funds using your sales.

Taxes

Sometimes, owners run into the issue of owing more than expected come tax season. When in a bind, MCAs are a good option for bridging short-term cash flow gaps. Instead of using your nest egg to pay the IRS, you can repay owed funds with a portion of your future sales.

Onboarding Employees

Bringing new staff members on is no cheap feat. Business cash advances can be used for training hires and securing top talent. Investing in the right employees can help small businesses achieve larger initiatives.

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Getting Approved for a Business Cash Advance

Applying for an MCA loan is easy. We’ve streamlined the process to be pain-free and fast. Below are the main qualification factors we look at:

Financial Documents:

Your lending advisor will ask for recent bank statements to validate income. You will only need to show documents from the last 3 months.

Length of Time in Business:

Being a more established company is considered a good thing to most lenders. As a rule of thumb, the longer you’ve been operating, the better. Approval rates are highest for businesses who have been around at least 6 months.

Current Debt:

Leverage is commonly used to assess risk. Understanding how much you owe gives lenders an idea of what you might reasonably be able to afford to pay. If you have a lot of debt, you’re usually considered a riskier applicant than someone who is carrying low to no debt load.

Average Revenue:

Having high monthly sales is a good thing, when it comes to MCA lending, $10,000 a month in revenue is the benchmark most financiers are looking to see. Bringing in more revenue increases your chances of being approved for a larger advance.

Credit Standing:

Credit is just one factor amongst many in the approval process. Fortunately, you can be approved for a business advance with bad credit. At Clarify, we look at each client holistically to determine eligibility. We provide funding to applicants with all types of credit.

What is a Merchant Cash Advance?

With a merchant cash advance, you’re able to obtain working capital in exchange for a percentage of your future sales. Merchant cash advances can be a quick, easy way to get funding with no collateral and no personal credit requirements.

Merchant cash advances, also known as credit card processing loans, are designed to meet immediate financing needs, like bridging gaps in cash flow, dealing with unexpected needs for extra funding and taking advantage of new business opportunities.

Rather than pull funds from other parts of your business, a merchant cash advance can cover your costs while keeping your daily accounts payable intact.

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Best Cash Advance Funding Alternatives

Whether an advance loan is right for you depends on your unique business goals and preferences. We’ve outlined the most popular business financing solutions below for owners who want to explore other options:

Short-Term Loans

Term loans are a good fit for owners who want predictable and regular payment schedules. You receive a lump sum of money and pay interest on the total amount financed. Unsecured loans do not require collateral.

Invoice Factoring

Commonly referred to as invoice financing, factoring works similar to MCA loans. The key difference here is that the funds you receive are based on account receivables, rather than merchant sales.

Business Line of Credit

Credit lines provide flexibility and maximum control. You only pay interest on the capital you use, rather than the total amount you’re eligible to receive. Owners can draw from an available pool of funds on an as-needed basis, as things come up.

Equipment Loans

Equipment financing makes sense for business owners who need to buy or rent machinery and equipment. Borrowers with bad credit can be approved. These loans do not require down payments or collateral.

Frequently Asked Questions about MCAs

What’s the difference between MCA and Factoring?

Both deal with cash advances, but how the advances are calculated is different. With merchant loans, you receive an up-front sum of money based on future sales. With factoring, you receive a capital advance based on accounts receivables.

What is a factor rate?

Factor rates are used to calculate how much you’ll be responsible for paying back. The decimal figure is multiplied to determine the total amount owed. These are different than interest rates, which are expressed as a percentage.

What is a credit card processing loan?

Technically, MCAs aren’t loans - they’re advances. Despite this, many people use the term credit card processing loans to refer to merchant advances. These terms are often used interchangeably.

Am I eligible for an MCA if I have bad credit?

Yes! If you have bad credit, you may still be eligible for a business cash advance. A Clarify lending advisor will go over qualification criteria with you in more detail when you apply online.

What is a holdback?

Lenders “holdback” a percentage of your sales as payment for what you owe. Rather than paying funds directly to the lender on a fixed schedule, a certain percentage is taken off the top of card sales, until the total amount you borrowed is paid off.

Types of companies have recently secured business cash advances from Clarify:

Contractors
Distributors
Bars
Hair and Nail Salons
Specialty Trades
Dentists
Florists
Barbers
Health Care Providers
Transportation Companies
Retailers
Restaurants
Suppliers
Auto repair shops

Qualification Requirements

At least 6 months in business
$10,000 in monthly revenue
Credit score of at least 550

Note: These are general working capital loan qualifications. Other information might be considered by lenders. Your dedicated Clarify advisor will walk you through it!

Ready To Grow Your Business?

Get approved for an MCA today and have funds in your account within as little as 1-2 days. Qualify without affecting your credit! Application process takes less than 2 minutes.

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