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A Merchant Cash Advance is a purchase of your business' future cash and/or credit card receipts in exchange for an upfront cash payment. Capacity Funding will generate an offer that is based upon various factors such as your business' historical monthly revenues. You get a cash advance which is usually approved and funded in just a day or two with very little paperwork involved. In turn, you agree to pay back the advance, plus a fee, by letting Capacity Funding take a portion of your cash and/or credit card sales each day until the entire amount you owe has been repaid.
The cash advance amount you receive is multiplied by a factor rate to determine the total amount you are required to pay back. You’ll pay this back by giving Capacity Funding a fixed percentage of your cash and/or credit card revenues each day until the repayment obligation has been satisifed. Average repayment time frames are 3 – 9 months.
A Merchant Cash Advance is a viable option if you don’t qualify for financing at a traditional bank or financial institutions or if you are looking for a simple and quick way to secure funding for your business. Merchant Cash Advances are a good solution if you have little or no collateral, limited business history, or a poor credit rating. You can use a Merchant Cash Advance as a short-term financing tool to help with cash flow, purchase inventory, pay other debts, meet unexpected expenses, and more.