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What is a merchant cash advance?

A merchant cash advance is a lump sum amount of capital advanced to business owners against the future credit card sales that you repay using a set percentage of your daily credit card transactions.

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Who qualifies for merchant cash advances?

A business that has been established for at least 3 months, with business owners minimum credit score of only 550 and average monthly credit card sales of $7,500 and above can qualify for this type of business funding.

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How do you get a business cash advance?

Orumfy makes it easy for small businesses with credit card sales to obtain working capital through a merchant cash advance.

Simply create a free account and our platform will match you with merchant cash advance providers best suited for your type of business.

Choose from multiple business cash advance options you are approved for and receive the funds directly to your bank account in less than 24 hours.

OVERVIEW

A Merchant Cash Advance (sometimes called an MCA loan) is a simple and flexible solution for small businesses to gain access to the working capital they need for growth or to handle cash flow emergencies.

Keep in mind that merchant cash advance loans are not actual loans and do not work like a traditional business loan would.

With this type of financing a lender advances business owners short-term working capital that they repay with a set percentage of businesses’ daily credit card sales.

This percentage is automatically remitted daily, so you don’t have to deal with a huge payment at the end of the month.

At Orumfy the whole process is quick and simple.

Simply create an account and apply either online or through our app and get approved and funded within 24 hours.

WHAT YOU NEED TO KNOW

How are merchant cash advances different from a business loan?

A merchant cash advance and a business loan are two entirely different ways business owners can finance their business and obtain working capital.

The old, traditional meaning of a business loan usually meant term loans issued by banks.

Bank loans such as these are generally long-term loans and with low rates.

However, qualification process is not easy, takes a long time, and most applicants at the end still unfortunately get denied by the banks.

An online lender may also issue a short-term business loan that works almost like a cash advance, only instead of a percentage of your future credit card proceeds being debited by your credit card processor, a lender will debit your business account directly.

After a lender has reviewed your application and has approved your business for a small business loan, they will present an you with an offer with a specific dollar amount that has fixed regular payments until the loan has been paid off in full.

A merchant cash advance is not a loan.

Cash advance companies purchase your future credit card sales at a discount.

They advance you a lump sum of money when you need it, and the repayments will be a percentage of your daily credit and debit card sales.

Would your business be eligible for a merchant cash advance?

Merchant cash advance providers use different criteria for underwriting during the application process than issuers of an old fashioned traditional loan do.

A traditional lender like banks and credit unions rely heavily on business owners credit history.

In most cases the minimum score needed to be a approved for a traditional loan is 640.

Remember when applying for bank loans, a lot more time will be needed to get approved or declined, criteria is a lot more stringent and be prepared to submit a ton of paperwork, as well as a business plan.

Merchant cash advance companies, on the other hand, will work with small business owners with less-than-perfect credit.

A minimum credit score of 550 is usually accepted.

Of course the higher the score, the lower the cost.

Cash advance companies look at how long a business has been operating for, monthly average deposits as well as the average credit card sales, if any.

Orumfy’s innovative platform takes the guesswork out of the equation.

We work with multiple merchant cash advance providers, ensuring you get the best rates and terms for your small business.

Create a free account here and immediately see how much you are pre-qualified for.

Which business owners typically use a merchant cash advance?

A Merchant Cash Advance, can be extremely beneficial to small business owners because it ensures that if a company has a slow day (or season) it will not have to continue dealing with a high fixed payment that comes with term loans.

There are several elements that make a merchant cash advance a unique financing solution for those looking to obtain working capital fast.

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The funding process is simple and remittances are automatically made from credit and debit card sales

You can get access to your funds in as little as 1 day

There is no maturity date and no fixed payment amounts

You can get funding from $5,000 to $500,000 per business location

This financing can be used for any business activities

A Merchant Cash Advance can create a great opportunity to put your business back on track or take it to the next level.

How does a merchant cash advance work?

A Merchant Cash Advance is a simple and flexible solution for small businesses to gain access to the working capital they need for growth or to handle cash flow emergencies.

Orumfy’s platform makes the process quick and simple so you can get approved and funded within 24 hours.

How it Works
Step 1
Create a free account with Orumfy and immediately see how much you are pre-qualified for
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I can do it on mobile!!!

Step 2
Complete the application process and provide the necessary documents
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Not a lot of paperwork?
Great !

Step 3
We analyze your business, and present you with multiple options from lenders, best suited for your business
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Can’t wait!

Step 4
Once the offer is accepted an agreement is signed by all parties
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WOW! That was quick!

Step 5
Money is wired to your banks account within 24 Hrs
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Thanks Orumfy!

How it works
  1. Create a free account with Orumfy and immediately see how much you are pre-qualified for
  2. Complete the application process and provide the necessary documents
  3. We analyze your business, and present you with multiple options from lenders, best suited for your business
  4. Once the offer is accepted an agreement is signed by all parties
  5. Money is wired to your banks account within 24 Hrs
Orumfy can help any small to medium-sized businesses obtain working capital. lets get started

FAQ

What other small business funding options should I consider?

There are many different types of financing options available to small businesses.

Knowing what the funds will be used for and how much you need will help determine which short-term loan is right for you.

Here are the options available to you.

PUT INFO ON LOANS FROM THE BUSINESS LOANS OVERVIEW PAGE

How do you know whether a merchant cash advance will make sense?

When considering if a merchant cash advance makes sense for your business there are a few things to consider.

How fast do you need the financing? If the answer is quick than a merchant cash advance very well could be the best option for you.

Merchant Cash advance companies can have you funded within 24 hours.

Will you be using the capital received all at once?

If yes a merchant cash advance is a good option.

If no, then there is another short-term loan option like a business line of credit that may be a better fit.

In certain cases a business credit card might be the best solution.

Is the project you are borrowing the capital for will take a few years to complete?

In such long-term loans might be a better fit like an SBA loan.

Keep in mind when calculating the cost of short term business financing, such as a merchant cash advance, that there is no annual percentage rate (APR).

Instead a factor rate is used.

Orumfy’s platform helps you navigate through the many different loan options you qualify for, and we help you choose which type of financing is right for your small businesses needs.

What is your percentage of credit card sales?

As we mentioned above a merchant cash advance is not an loan.

There is no annual percentage rate.

A lender purchases your future credit card proceeds and uses a factor rate to determine the amount that you will be paying back.

After a lender approves your loan application they will present you with an offer that includes what percentage of credit and debit cards sales will be used to payback the capital borrowed.

The daily payments will vary.

The more credit card transactions you have that day the higher that days payment will be.
Respectively the less credit card transactions the smaller the payment.

Having a percentage taken daily versus having a set daily payment can be very beneficial to small businesses that have a slower month or deal with seasonality.

How does seasonality affect your sales volume?

The seasonality of a business directly affects your sales volume making a short-term business loan essential for your small businesses success.

Having a source of funds to cover payroll, order inventory or just to cover everyday expenses during down time is crucial.

Applying for a merchant cash advance or line of credit can help with the business day to day expenses.

A Short-Term working capital loan or business credit card can help get your through the slow months and have you up and running when the time is back by helping with payroll and purchasing inventory.

Does your business currently accept credit cards?

Consumers using a credit card has become one of the most common forms of payments used today.

Business owners accept credit cards today in order to grow there future sales and improve cash flow.

Customers tend to spend 12% to 18% more when paying with a credit card.

Customers are also carrying less and less cash these days.

The plastic they carry in their wallets including a debit card attached to their bank account gives them more purchasing power.

For business owners still not accepting a credit card as payment it is time to reconsider.

For those of you who are taking credit cards as payments, choosing the right credit card processor is crucial in ensuring you keep the highest percentage of the credit card sales your business has made.

When opening a merchant account try and keep the credit card processing fees to a minimum and avoid paying any hidden fees.

Orumfy makes sure you work with the best credit card processing companies offering the lowest percentage in fees.

Stop paying the high rates on your credit card sales.

Start saving today!

Apply to see what is Your small business loan options today!
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