Is Securing A Merchant Cash Advance Really That Easy?

The short answer to the question posed by the title of today’s blog is “yes”! But, of course, we understand that further explanation is necessary. At Synergy Merchants, we have been providing Canadian business owners with the ability to grow their businesses through our unique merchant cash advance program for over ten years. We’re aware, however, that the concept is still new to many entrepreneurs nationwide. So they have many questions about it.

“How can you get funding without having to pay any interest?”

This is one of the biggest questions that come our way. At times, there is a misunderstanding that merchant cash advances are advertised as being “free” ways to get money. Of course, that is not the case. However, it is true that there are no interest rates. So let’s address the actual costs of merchant cash advances.

When you take out a loan from a bank, you are required to make minimum monthly payments in order to repay the loan. As per usual, interest is charged on the outstanding balance. The longer it takes you to pay off the loan, the more interest you will inevitably pay.

With a merchant cash advance, you are given a one-time fee.

The amount of this fee is generally determined by the amount of the cash advance itself. It will not change no matter how long it takes you to repay the advance. This is because there is no repayment schedule. Unlike with bank loans, you are not required to make monthly minimum payments. Instead, payments are automatically made through small percentages of your credit card and debit card sales.

That way, you don’t make a payment until your company is paid first! This leads us to being able to adequately answer the question posed by today’s blog title. Securing merchant cash advances is generally much easier than securing bank loans because you don’t have to worry about your credit history or providing any collateral in order to be approved.

Credit histories and collateral don’t come into play.

Two of the main reasons banks often deny loan applications is because of the applicants’ poor credit histories and/or lack of collateral. It comes down to their trust in your ability to repay the loans. With merchant cash advances, that “trust” comes a lot easier.

We’re aware that, as a business owner, you process credit card and debit card sales. We know this because during your application process, we review your previous monthly statements that help us to learn just how much you process in credit and debit sales each month. Since a small portion of your future transactions will make up your payments, we don’t insist upon a specific repayment schedule. We let your sales do the paying for you!

So, yes – it really is that easy to secure a merchant cash advance!

All that is truly required is that you process credit card and debit card sales in your store. However, we imagine that you’d like even further details. And we’d more than happy to give them to you! For more information about our unique merchant cash advance program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at info@synergymerchants.com.