Merchant Cash Advances Explained

By: First Union


Merchant Cash Advances Explained

Why a Merchant Cash Advance?

You may have the sales lined up, however, the money from those sales is a different story. The problem is, you need positive cash flow to keep your company moving and growing. One of First Union’s merchant cash advances could be the solution to your stalled money issue. By leveraging future credit card sales, you can get the funding you need now rather than later. We’ve worked with so many clients in just this capacity; our customers have found that merchant cash advances provide flexibility and more importantly accessibility to the financing required.

So How Does a Merchant Cash Advance Work?

While not technically a loan, a merchant cash advance can be used by a variety of businesses-not simply those who deal in credit card sales. Because of how the payback options are structured, you have the flexibility of using future purchases or also remitting fixed daily ACH payments.
With either situation, you get the cash needed upfront and then pay it off as you go. If doing a percentage of credit card sales, then the money is automatically deducted from each purchase until the advance is paid in full. This amount is based on your estimated revenue per month. Also, with the ACH option, a fixed amount is taken out every business day independent of projected sales numbers.

How Do I Get Approved for a Merchant Cash Advance?

First off, we will review everything from recent sales, to future earning potential, to more in-depth company financials. From there, our team assesses your ability to pay back the cash advance and approvals are imminent. The process is incredibly streamlined, and you can get the cash you need in as little as a few days.

At First Union, we are all about flexibility. We understand that businesses have their ups and downs and sometimes you need money quickly, be it to deal with a problem, pay for an unexpected expense or jump in on a tremendous growth opportunity. We want to be sure you get the financial help you need!

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