When it comes to small business financing, in the current economy, many small businesses are facing a sort of Catch-22: they need additional funding for their business, but since their cash flow is tight to begin with and their credit score might be weak, they have trouble being approved for a loan. It seems counter-intuitive that it would be significantly more difficult for businesses to receive financing when they need it most, but the banks seem to be unwilling to budge in the arena of small business lending.
Other financing options are available for businesses who have run into this problem, and they take on many forms. One of these small business financing methods is a “business cash advance,” or “merchant cash advance.” Merchant cash advances have become synonymous with “credit card factoring,” whereby the cash advance lender receives a fixed percentage of your credit card transactions with your clients until the cash advance is paid back in full. However, what many business owners don’t realize is that alternative financing options are available for businesses who don’t process credit cards. Because merchant cash advance providers realize that small businesses need several different options when it comes to financing their businesses, there is another popular option of repayment for businesses who need a business cash advance but don’t process credit cards.
How does it work? Our bank only program allows your small business to receive a merchant cash advance, but instead of repayment via credit card factoring, you can pay the cash advance lender back by allowing a small amount of your bank deposits until the advance is paid back in full. This means that every time you deposit money into your small business’ bank account, a fixed amount is deducted from your bank account. Because this amount is determined before the cash is advanced to your business, there will not be any surprise fees or interest rates tacked onto the amount you pay back. Because there is no interest rate, your business can pay back more when you have done more sales and less when business has been slow. This makes our bank only program extremely flexible to accommodate for every small business owners’ needs.
Learn more about our bank only program.