How it works

How it Works

In a typical merchant cash advance scenario, merchants receive a lump-sum advance of one to four times their average monthly sales. The advance provider and merchant agree on a repayment term based on either a percentage of their sales or a fixed daily payment that will be collected from the merchant.

A typical merchant is required to have a minimum monthly sales volume of $10,000 along with good standing with their landlord and no open bankruptcies. There is minimal documentation required, typically consisting of processing statements, bank statements and a copy of their property lease or mortgage statement.

The following is a breakdown of how a typical merchant cash advance transaction works:

Application Process (5–7 days)

Day 1

Day 2

Day 3

Day 4

A merchant submits an application along with some financial documents such as bank and processing statements, a copy of their property lease or mortgage statements.

Initial diligence is conducted and applicants are either given an offer for an advance, or are rejected based on stringent criteria.

Upon acceptance of the offer from the merchant, our underwriting team conducts a full underwrite of the business and conducts a phone interview. At this point, the offer is either moved to funding or rejected based upon the discovery of the underwriters.

Advance is funded in one lump sum after diligence and approval. A payback amount is determined before each advance, and this number does not change. Businesses use the cash for marketing, expansion, inventory and recruitment.

Payback Process (2–12 months)





Merchants generate sales, as usual, in their ordinary course of business

Our Proprietary system automatically deducts a small fixed percentage of the business’ credit card deposits, or debits the merchant’s bank account with a set daily amount.

The business uses the balance remaining in their bank as normal with little delay and no further action or maintenance needed from the business.

The process of a daily deduction continues until the advance is fully repaid.