What to Ask Before Getting a Merchant Account Cash Advance

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By MerchantGuide

Three Questions to Ask... Before You Sign Up

So what is a merchant account cash advance?

And how can it help you when your business runs into an immediate need for cashflow?

As the name implies, a cash advance works by receiving money from a merchant cash advance company in exchange for your future sales.

Basically, you are apply for a lump sum amount that is paid out according to repayment terms from a portion of your future sales.

What that means is that a company will give you cash in hand today, to be repaid from a percentage of your daily (or monthly) sales volume down the road.

So what's the catch?

Key Merchant Account Cash Advance Questions

As you can well imagine, there are some things to consider before signing up for a cash advance.

A short list of questions to get you started are:

  1. Will I need to switch credit card processing companies?
  2. What are the repayment terms (time-frame, percentage of sales)?
  3. Once I am in repayment, can I change my credit card processing to another merchant account provider?

Who qualifies for a merchant cash advance?

Two factors typically involve your business operation (your business type and how long you have been in business) along with your average monthly sales volume.

For example, you may qualify if:

  1. you have been in business for 9 months or more (some companies may accept you with 4 or 6 months of operation)
  2. you have solid average monthly sales figures
  3. your business fits their profile (retail, restaurant, liquor store, medical office and some other office based businesses)
  4. your credit card sales volume is greater than $5,000 per month.

It is also important to remember that a merchant account cash advance is not a loan.

This will effect your taxes differently than a business loan, (from a tax deduction standpoint) so you may want to consult with your CPA or other tax advisor.

Sometimes we all run into an emergency need for cash.

And used wisely, a merchant account cash advance can put badly needed dollars in your pocket in a hurry.

To find the best merchant account cash advance offer, simply click on the link and get your cash advance quotes today.

You have nothing to lose and everything to gain by getting your no-obligation quotes.

If you need a cash advance in New York you can contact Citi Wide Merchant Funding to request a no-obligation rate quote today...

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    Other merchant account set up tips

    There's more to accepting credit cards -- whether you have multiple locations or you own a "mom and pop" business.

    In fact, believe it or not asking "what's your rate?" over the phone is the LAST thing you should be thinking about, because there are multiple rates, fees and other charges depending on your type of business and how you want to accept credit cards.

    Not to mention that quoted rates over the phone are often misleading, or only apply to your business 20% of the time.

    The key?

    To get the best merchant account you need to talk with a solutions provider. You can learn more about merchant processing services by checking out some articles below:

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