Merchant Cash Advance and its related ACH Advance are lump sum advances of immediate cash which is repaid with a percentage of future credit card or other retail sales. Although considered an expensive form of financing, Merchant Cash and ACH Advances are often readily accessible sources of working capital when other options are not available.
A Merchant Cash or ACH Advance is a lump sum advance of cash today which will be repaid from future credit card or retail sales. The provider will collect repayment by taking a percentage of each sale until the advance is repaid. Its important to note that most Merchant Cash or ACH Advances are not considered loans but simply advances of risk capital.
Merchant Cash and related ACH advances are often used by such businesses as restaurants, auto repair facilities, exercise facilities, karate dojos, convenience stores, and other small businesses with needs for expansion capital or equipment.
There are some significant advantages and benefits to Merchant Cash and ACH Advances which include...
Although Merchant Cash and ACH Advances are sometimes considered expensive, there is considerable risk in the transaction for the provider so the expense is understandable. It is also important to note that industry statistics evidence nearly two out of every three businesses opting to utilize this type of funding, renew their advances a second and even third time for working and expansion capital until they can qualify for a more traditional and less expensive type of financing.
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