We've Done Our Best To Compile An Exhaustive List Of Common Questions And Answers
Who do I call if I have any questions?
A Merchant Advance Capital Relationship Manager is happy to assist you:
Monday – Friday 9:00am to 5:00pm PST
E-mail: [email protected]
How long will it take for me to receive my funding?
We can provide funding for your business in as little as 1-2 business days upon receiving your completed application forms and documents.
What can my merchant advance be used for?
You can use your merchant advance for any business purpose. Examples of ways that business owners have successfully invested their merchant cash advance money include:
Buying Out a Partner
If I already have a business loan, does this impact my ability to get a merchant advance?
As long as you meet our qualification requirements you may be eligible for a merchant advance – because our product is not a loan (it is a purchase of a portion of your future debit/credit card receivables), we may be able to provide cash for your business without affecting your other obligations. Please contact us to discuss the specifics of your situation and we will determine whether you are eligible for the merchant advance program.
What is the length of a typical merchant advance program?
By analyzing your historical debit/credit card sales volumes we establish targets for the length of your merchant advance program. A program can be designed to last anywhere from 6-18 months and the amount of cash that we can advance you depends on the length of the program. However, the length of time it actually takes for us to get paid back depends on how well your business does (we don’t get paid until you get paid!). Apply now and a Merchant Advance Capital Relationship Manager will contact you to discuss which options best suit your needs.
Can the daily percentage change after the account has been funded?
No – once the daily retrieval percentage (or “withholding percentage”) has been set it stays the same until your outstanding balance has been satisfied. However, at Merchant Advanced Capital, we do our best to ensure that your business will remain profitable during our program. As such, we keep the withholding percentage small and typically set it to between 4-15%.
I already have financing in place with a similar financing company. Can you replace my current merchant advance at a lower cost or offer me more money?
Contact us to find out how much we are able to offer you – our advance fees are very competitive and our advance may be able to pay off your existing balance if it is in your best interest.
How often do I have to make payments?
Our process is fully automated so you never have to worry about making a payment. We only get paid when you get paid and our automated process collects a specified percentage of your debit/credit card sales on a daily basis. In the case of a merchant advance loan, a small fixed payment is electronically debited from your business bank account each business day. This continues until your balance is settled.
Will bad credit affect my merchant advance application?
Although your credit score is a factor in our decision, there are many other factors that play into our decision of whether or not to advance cash to your business. Having excellent credit is not a pre-requisite. Also, your merchant advance will not affect your credit score. Apply now and see how much you qualify for!
I am planning to buy equipment with my merchant advance. Can we set up the transaction as a form of secured equipment financing and save on my merchant advance fee?
At Merchant Advance Capital, we view each business and each situation as being unique. We maintain a flexible approach and have the resources to tailor our financing solutions for a variety of circumstances. To the extent that you are using your merchant advance funds on new equipment, we may set up the transaction as equipment financing. If you have other collateral you are able to offer (personal property or otherwise), this may also be used to lower the cost of your advance. However, putting up collateral is completely optional. We just believe in giving you the choice so that we can offer you a better price! Please contact us to discuss the specifics of your situation.
How much does a merchant advance cost?
Applying for a merchant advance is absolutely free – we do not charge any fees associated with the application process. The size of the fee for your merchant advance depends on a number of factors including the size of the advance, the size of your business, the industry you are in, the level of seasonality in your business, and the size of your average sale, among other things. Find out exactly what you qualify for by filling out our online application form and a Merchant Advance Capital Relationship Manager will contact you within 24 hours.
Does it matter who my debit/credit card processor is?
It does not matter who your current debit/credit card processor is. Our automated system has been designed to work with all major processing companies. At Merchant Advance Capital, we will never ask you to switch from your current processor – we are not in the business of payment processing, we are in the financing business!
Can I pay my balance off at any time?
Yes – at any time you may pay your remaining balance without any penalties or stipulations. In fact, in some cases you may be eligible for a discount if you pay your entire balance off in full. Contact your account manager to find out if you are eligible.
How do I know if my business qualifies for a merchant advance?
If your business has a physical location, there’s more than six (6) months left on your lease, you’ve been in business for at least six (6) months, and you process at least C$5,000 per month in debit/credit card sales, then you meet our basic qualifications! Find out exactly what you qualify for by filling out our online application form and a Merchant Advance Capital Relationship Manager will contact you within 24 hours.