Miami’s Best Merchant Cash Advances
August 6, 2019
As a business owner, you are used to chaos. Every day you’re in business is another day when you have to tackle a new hurdle, close a new client, and find a new way to expand. Some days are great. They’re days when you feel like you’re on the top of the world, where everything just falls in line perfectly.
Other times, though, can be a challenge. With most small business owners, the biggest issue is finding business funding. Most banks, even those who offer traditional SBA loans, will not issue out a loan to new business owners—or established business owners who have less than perfect credit.
A merchant cash advance is the solution most small business owners use in order to make ends meet, get funding for expansion, or just upgrade your tools. At Leo Capital group, we are proud to be Miami’s source of affordable merchant cash advances.
MERCHANT CASH ADVANCES: A QUICK GUIDE
A merchant cash advance isn’t a loan; it’s a purchase of future credit card sales at a discount. You might be wondering what this means for you. It means that the following things will be true:
Your credit score, time in business, or current business model doesn’t matter when you apply for an advance.All that matters is your current income you receive via credit cards. Your credit score also won’t suffer from inquiries through a merchant cash advance.
You are far more likely to get approved for an advance than a business loan.Only 1 percent of all traditional bank loans are approved. Approximately 70 to 80 percent of all advances, on the other hand, are approved.
What you pay is based on what you earn.Flexibility is what makes a merchant cash advance better for most new businesses, especially for unpredictable businesses like restaurants. If you don’t earn any money in a month, you won’t have to pay anything that month.
No collateral is necessary.An advance is a purchase, not a loan. Therefore, you never have to worry about collateral.
You choose what to do with the money.Banks often restrict business owners on what the cash they give can be used for. Merchant cash advances never do. After all, it’s your money, you should decide what to use it for.
The approval process is the fastest on the market.Merchant cash advances are also extremely fast to apply for, approve, and disburse. The majority of advances are disbursed within three days or less!
WHAT SHOULD I EXPECT WITH MERCHANT CASH ADVANCES?
A cash advance from Leo Capital Group will always be what you make of it. Each cash advance offers more freedom and flexibility than a typical loan would offer. The interest rate will be higher, but at the same time, it’s a way to obtain more control over your cash flow and is more likely to be approved.
At Leo, our cash advances are known for having lower interest rates than many other companies. What you choose to do with the money you receive is up to you. We’ve heard of Miami restauranteurs use it for a new franchise opening, small business owners use their advance for new equipment, as well as companies that used them to keep afloat during business repairs.
HOW ARE MERCHANT CASH ADVANCE INTEREST RATES CALCULATED?
Technically, cash advances don’t have an interest rate. Rather, they have what is called a “factor rate,” which is the amount that you need to multiply a loan by in order to determine how much you owe. So, a factor rate of 1.1 on a $1000 loan would mean you owe $1100.
Factor rates can vary greatly depending on how much you borrow, what industry you’re in, whether you have another cash advance out, and more. To find out what your factor rate will be, you will need to talk to a specialist at Leo Capital Group.
LEARN MORE TODAY
If your company needs a helping hand, business funding can be a phone call away. To learn more about our cash advances, call Leo Capital Group today and ask us what we can do for you.