There is a big difference between a Merchant Cash Advance & a Small Business Loan. Find out the difference and why so many merchants are choosing this type of financing over a loan.
Merchant Cash Advance
A Merchant Cash Advance is a business loan alternative that is actually a sale. Our clients are selling us their future business at a discount in order to receive cash now. This advance of funds is driven by a percentage of future sales which are used to payback the initial advance.
First Us Funding gives your business an initial cash advance
The amount First Us Funding funds your business and the amount you pay back are agreed upon at the very start
A small percentage of your total sales is taken as repayment
It doesn’t matter if it takes you 5 weeks, 5 months or 1 year to pay us back because you still pay back the same amount
Once you are fully paid off, you go back to receiving 100% of your sales
Everything will go back to normal except you now have increased cash flow and a more valuable and profitable business
The Differences between a Cash Advance and a Loan
|Small Business Loan||Merchant Cash Advance|
|High interest rates||No fixed interest rateWe take a small, predetermined percentage of your sales|
|Complicated, binding contracts||FlexibleYou’ll always have the operating funds to run your business|
|Long waits for approval||Quick and easyYou’ll know within 24 hours|
|Must have good credit for collateral||Bad credit is okayNo collateral, no personal guarantee & no min. credit score|
Your Business Does Not Need to Process Credit Cards
In our effort to address this issue, First Us Funding has partnered with 2 of the banks that we do a large volume of business with, and created the “Bank Only ACH Program”. This is especially for businesses that don’t accept credit card payments.