Skip to content

The Problem With Making Late Payments To Your Bank

With Synergy Merchants’ unique merchant cash advance program, there is no such thing as being late with a payment. That’s because there is no monthly minimum payment required. You may be thinking that sounds a bit strange. Isn’t there a deadline by which your cash advance needs to be repaid? The answer, quite simply, is no. A merchant cash advance is not a loan. It is not borrowed money. And, therefore, there is no timetable to pay it back.

How is a merchant cash advance paid back? A small percentage of a merchant’s credit card and debit card sales are automatically deducted in order to pay back a merchant cash advance. This is done through an automated system with every transaction. There are no minimum requirements. If business is good, you’ll end up paying back your cash advance quicker. If business is slow, it will take a bit longer. We only get paid when you get paid! And since there is no such thing as being late with a payment, there are no penalties involved.

What happens if you are late in making minimum payments to a bank? Well, where do we begin? Firstly, and perhaps most importantly, late payments significantly impact your credit score. In fact, according to Matt Breed on, 35 percent of your credit score is determined by your ability to make your payments on time. A history of late payments can potentially ruin your credit.

In addition, there are other financial penalties associated with making late payments. “Creditors are more than willing to charge late fees and even jack up your interest rate after a few occurrences,” Breed explains, “So you end up paying for this in two ways: immediate fees for missing the payment, and increased rates on later loans and credit lines. This is common in some of the unfair new credit card fees.”

On, Amy Fontinelle asserts that the most important component of your credit score is your payment history. Paying late, she reiterates, has a negative effect on your score. As you should already be aware, having a poor credit rating can diminish your chances of securing any financing from a bank. And there are a number of factors that go into determining just how poor your credit score can be.

What factors about your payment history are considered when scoring your credit? If your payments have consistently come in late to your lenders, they take a look at just how late those payments are. Obviously, the later you are, the worse it is for your credit score. Fontinelle points out that those who are more than 90 days late run the risk of having their accounts sent to collection agencies.

As well, she points out that “charge offs, debt settlements, bankruptcies, foreclosures, suits, wage attachments, liens (and) judgments against you…are some of the worst things to have on your credit report from a lender’s perspective.” Wouldn’t it be nice to secure necessary funding for your company’s growth without having to worry about making regularly scheduled payments? With Synergy Merchants’ merchant cash advance program, you’ll never have to worry about making late payments again!

For more information on our merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at

Back To Top