A business cash advance (BCA) is also known as the Purchase of Future Sales Agreement. The business owner is responsible for paying back a fixed payback known as a specified amount, which is higher than the amount that was advanced to the company. This difference between the advance amount and the payback amount is called the Factor Rate or cost, which is a fixed cost. The advance is repaid by taking a fixed percentage of overall deposits called the specified percentage. The payments are collected by an ACH fixed payment deducted from a bank account based on the specified percentage of sales. The Repayment continues until the payback amount is paid back in full. There is no time limit with advances as the fixed payback percentage ever changes due to fluctuating revenue. The BCA is popular with small businesses that cannot get traditional business financing. This business funding option is not a small business loan or term loan, but a short-term business financing alternative.
Business Cash Advance Info:
- Rate:Range from 1.00% up to 1.50% (not interest rates)
- Repayment Terms:There are no time limits; payments continue until paid in full based on specified percentage collection method and future revenue.
- Origination Fees:Range from 2% to 3%
- Payment:Set a fixed percentage of charge card transactions.
- Minimum Score Ranking: All history considered; ranging from poor to excellent
The Business Cash Advance Process
The BCA process is simple and fast. Within 1 to 2 business days, a small business can receive the merchant cash flow you need to keep the ball rolling. Unlike traditional financiers, we don’t require tax returns. Our easy-to-access online application makes the process fast and simple. All you need to do is fill out the form.
All we need from you for a cash advance is:
- A submitted one-page application that can be found on our website
- Proof that your business has been established for one year or more
- Your most recent Merchant Cash Processing Statements and/or Business Bank Statements