Merchant cash advances in Boston

Technically, a merchant cash advance is not a loan. With an MCA, a business owner sells a portion of their future credit and debit card sales for money they can use right away.

The provider of the advance (in this case, Credibly) then collects a percentage of the daily sales the business makes from credit cards until the specified amount has been collected.

Yes, merchant cash advances are legal.

Merchant cash advances are not loans—they are purchases of future payment receivables for an upfront, discounted purchase price.

Because they are true sales and do not come from a traditional bank, there is no fixed payment or term - though a good faith estimate is often provided, as well as no principal, interest, or interest rate involved. State usury and/or lending laws do not apply.

Cash advances are priced as a total cost of capital with fees and factor rates included. Factor rates are typically based on the risk associated with funding your business.

With Credibly, merchants can get an early remittance discount. This means a discount is available to business owners who remit their full obligation with clean remittance history earlier than the specified terms stated in the initial agreement.

Funds from merchant cash advances can be used for many different business purposes, but since it is a type of short-term funding, an MCA is best used for covering temporary cash flow shortfalls.

Small business owners use cash advances for things like buying inventory, paying employees, making emergency repairs, marketing expenses, purchasing equipment, and other short-term expansion projects.

Although merchant cash advances are often accessible for businesses with lower credit scores, that doesn't mean your credit score isn't a factor at all.

At the same time, alternative lenders like Credibly often look more at your current financial health. If you've had strong performance, your credit score may not matter as much.

Each merchant cash advance provider has different criteria for approval, but will generally do a soft credit check before approving an application.

Credibly's minimum credit score requirement, for example, is 550+.

Applying for a merchant cash advance is simple.

You'll be asked to provide some basic information and documentation, such as:

• Past bank and credit card statements
• A copy of your business lease
• A copy of your driver's license or another type of government-issued photo ID
• A copy of your business tax returns

Applications for merchant cash advances are approved very quickly, and once approved, business owners receive their funds within a matter of days.

To learn how much you qualify for, fill out our online application. Submission is free and easy and will not negatively impact your credit score.