Funding Solution
Merchant Cash Advance Options
Arrangements based on a portion of future receivables, with costs that should be reviewed closely.
Overview
Understanding Merchant Cash Advance Options
A merchant cash advance is not a loan. It is a purchase of a portion of future receivables, typically repaid through a percentage of card sales or fixed periodic remittances.
Costs are usually expressed as a factor rate rather than an interest rate and can be significantly higher than other financing. We encourage business owners to compare total dollar cost, remittance frequency, and all fees before proceeding.
Benefits
- Documentation requirements are often lighter than term financing
- Remittances may adjust with card sales in some programs
- May be considered when other options are unavailable
- Timelines are frequently shorter than bank underwriting
Common uses
- Short-term, time-sensitive operating needs
- Bridging a specific near-term gap
- Card-based retail and restaurant operations
- Situations where speed is the primary constraint
Who it may be suitable for
- Businesses with consistent card or deposit volume
- Owners who have compared total cost against alternatives
- Short-duration needs rather than long-term investments
Emporium Capital Hills is not a lender or a bank. We help business owners explore financing options through a network of lending partners. Financing availability, amounts, rates, and terms depend on each lender's criteria and are not guaranteed. Nothing on this website is an offer or commitment to lend.
Questions
Frequently Asked Questions
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