A merchant cash advance is one of the most easiest and popular methods for business financing. Merchant cash advance loan alternatives has been around for a while, yet has grown in the last few years, making it a popular financial source for small business financing.

Any funds received through a business cash advance is not a loan, it is a cash advance paid against Visa or Master card merchant account receipt and these amounts are paid back through the merchant account itself.

Fundamentals for a Small Business Cash Advance:

1. The business must accept Visa, Master Card, American Express or Discover as a form of payment.
2. The business must process payments of $1,000 or more in a month.
3. The business should have been operating for at least 2 months.

Traditional Merchant Cash Advance
The traditional merchant cash advances is available to merchants with a 680+ credit score and will typically qualify for 90-125% of their average monthly credit card sales over a long term payment term such as 6-12 months. Click to Apply for Business Loan Alternative.

Starter Merchant Cash Advance
The starter merchant cash advance concept was pioneered by 1st Merchant Funding specifically for merchants that don't qualify for a traditional merchant cash advance. Most merchants applying for a traditional cash advance won't have a 680+ score and will fall into the guidelines of the starter merchant cash advance program. The starter business cash advance program specifically caters to merchants that were declined by the bank for a business loan, declined by a merchant cash advance provider, or declined for any other sort of alternative financing. The starter merchant cash advances underwriting is strictly based on the merchants actual credit card processing performance. Typically merchants will qualify for 35%-85% of their average monthly credit card sales volume, and repayment is typically quicker than a traditional cash advance. Each and every round the merchant advance is paid back, the merchant qualifies for a higher amount of funds. Click to Apply for Business Loan Alternative.

Funding for Restaurant Start Ups
1st Merchant Funding introduced funding for restaurant start ups April 2010. $1,000 guaranteed merchant cash advance is available to all NEW restaurants. Repayment is made via your future credit card sales. You must process credit cards with one of our partner credit card processors, and settle your first 3 days of credit card transactions with one of our approved partner merchant account providers. Click to Apply for Restaurant Financing.

The biggest reward that the cash advance business offers to the merchant is that they are not personally liable to repay a small business cash advance. Most businesses accept credit cards as a form of payment. Rather than using the personal credit of your small business, the owner can sell his future credit card receivables at a discounted price to the cash advance provider, similar to factoring. This is credit card factoring vs. invoice factoring.

Cash advance companies are repaid through a merchants future credit card sales. There are no permanent repayment schedules with our business cash advance loan alternative. Repayment is done automatically when the merchant has a Visa, MasterCard, and/pr Discover sales.