What is a merchant cash advance? How does it work?
A merchant cash advance is a business cash advance – a convenient alternative used by thousands of small business owners just like you to finance their working capital needs. A merchant cash advance provides a lump sum payment to your business in exchange for an agreed upon percentage of your future credit and/or debit card receivables. A merchant cash advance is not a business loan. There are no fixed repayment schedules, and approval is based on your business history – and not your personal credit score. Merchant cash advances provide working capital to help you run your business, whether expanding your business or purchasing inventory – you can use the money however you need. Have questions? Just call us at 800-777-3008 to talk with an Account Executive to understand if a merchant cash advance can help solve your business' working capital needs.
Why should I consider a merchant cash advance versus other cash advances?
American Financial offers better pricing versus traditional merchant cash advance providers – about half the cost of other providers. We understand the needs of small business owners; call today to speak with one of our Account Executives who can work with you to identify a funding option that works for you and your business. And, we know your time is limited – so when you work with American Financial for your advance – there is no need to have to switch your card processor.
Why should I consider a merchant cash advance versus using a credit card or traditional business loan?
Merchant cash advances have helped tens of thousands of small businesses get the working capital they need … in a much more efficient manner than traditional bank loans and credit cards. More and more small and mid-size businesses are turning to merchant cash advances to obtain the working capital needed to grow and take advantage of business opportunities. There are several advantages – including:
- A simplified application process
- Quick decisions
- Fast funding
- No personal guarantee or collateral*
- No points, application fees or hidden costs
- No fixed payment schedule
- No coupons or checks to write
- No impact on your ability to qualify for other financing
- No business use restrictions on the funding
* However, individuals may be liable in cases of fraud or misrepresentation. See contract details.
Will a personal guarantee be required?
No. A merchant cash advance requires no personal guarantee or collateral. However, individuals may be liable in cases of fraud or misrepresentation. See contract details.
How do I qualify for a Merchant Cash Advance?
Qualifying for a merchant cash advance from American Financial is quick and easy. If you have been in business for at least one year, and your business has monthly credit and debit card volume of at least $3,500, and your business is free from any judgments or liens – you will most likely qualify. To see how much you qualify for, call us today, or complete a short application and one of our Account Executives will contact you to review your funding options.
How do I get started?
It's easy to get a no-cost, no-obligation quote for your business and see how a Merchant Cash Advance can help solve your business' working capital needs. There are two ways to get started…
- You can complete the short online form, and one of our Account Executives will contact you within 24 business hours to review your funding options.
- Or, call American Financial at 800-777-3008 (weekdays 9:00 a.m. – 6:00 p.m. PST), and talk directly with one of our Account Executives.
How much can I qualify for?
The amount of your Merchant Cash Advance will be based on your business history. Advances can range from $5,000 to $250,000, with customers qualifying for as much as two times their monthly credit and debit card sales volume. One of our Account Executives can work with you to see how much you qualify for, and provide you with a no-cost, no-obligation quote today.
How long does it take to get approved for funding?
Once all documents are received, you can receive funding in as few as seven days. The application process is simple and straightforward. There's no requirement for personal financial statements or cumbersome cash flow forecasts. Your Account Executive will work with you to identify the documents needed to review and understand your business history. Typically this includes providing your last 4 consecutive VISA/MasterCard statements, and copies of your last 2 business banking statements, etc…
What does it cost to apply for a merchant cash advance?
There are no up-front expenses, application fees, or out-of-pocket costs. Call or submit a quick online application to get started with your no-cost, no obligation quote.
How much does a merchant cash advance cost?
One of the advantages of choosing a merchant cash advance is our price – about half the cost of a traditional merchant cash advance. Your Account Executive can work with you to find the right merchant cash advance solution for your business. Actual pricing will be based on several factors, including but not limit to; the size of the cash advance and the estimated time for repayment. All the details will be clearly included in your contract. To find out how much you qualify for, and the associated cost, call to talk to one of our Account Executives, or complete the short application to get started.
How do I make payments?
To repay the advance your business operates as it always does. Through an automated process, when you "batch" your credit and debit card sales (typically daily), your processor will automatically forward the agreed-upon percentage of your credit and debit card sales to American Financial. Repayments are based on an agreed upon "fixed" percentage of your future Visa and MasterCard receivables … meaning if your sales are up, the advance is paid back faster, and if your sales are down, the advance is paid back a bit slower. Because we only get paid when you get paid, your business can better manage cash flow. Payments are automatically applied to your remaining balance until the balance is satisfied. The process is seamless, with no need to remember monthly payments, writing checks, worrying about late payments or escalating interest rates.
How do I know how much I have left to pay?
You can monitor the repayment of your advance through our convenient on-line account management tools.
Do I have to switch my credit card processor?
No, American Financial works with the industries best processors.
What if I need additional money? Can I qualify for a second advance?
A large number of our customers take advantage of additional merchant cash advances to finance their working capital needs. After approximately 60% of your original advance has been repaid, just contact your Account Executive to discuss additional funding options.
Who is American Financial?
American Financial is not a bank but rather a specialty financial services firm that provides working capital to established small business owners. American Financial is headquartered in Newport Beach, CA.
