The lack of available funding for small businesses has created a multi-billion dollar market for merchant cash advance companies, which advance funds to businesses in exchange for a percentage of the businesses' daily income. A business’ remittances are drawn from customers' purchases, typically on a daily or weekly basis, until the obligation has been met. These merchant cash advances are not loans—rather, they are a sale of a portion of future sales.
Benefits of Merchant Cash Advances
•Less paperwork required than a bank commercial loan
•Shorter approval and funding timeframe than a bank commercial loan
•More likely to be approved than via a bank commercial loan
•Collection requires minimal effort from merchant and occurs daily via processor split- funding, ACH debit, or lockbox
•No late fees if business sales slow
•No obligation to repay if business failure occurs
This website is not intended as and does not constitute an offer to sell any securities or a solicitation of any offer to purchase any securities. Such an offer or solicitation may be made only by the confidential private placement memorandums.