A merchant cash advance (sometimes referred to as a business cash advance) is an alternative form of financing where the cash provider purchases a fixed amount of a merchant’s future credit card sales volume, typically at a discount of up to 38%. The advance is paid back from a percentage of the merchant’s daily credit card receipts until the agreed upon amount has been paid back. The average term of these advances is from 6 to 9 months. The daily repayment ebbs and flows with the business’s credit card sales. The higher the sales, the quicker the advance is paid back thus raising the cost of funds significantly (APR’s can range from 50% up to 200%).
An ARF loan is the preferred choice over a merchant cash advance – rates are lower, payments are fixed, terms are longer and the interest you pay is tax deductible. Repayment has nothing to do with your credit card receipts. As your sales increase, your payments remained fixed. That means you reap the benefits of the increased sales, not the cash advance company.
If you’re seeking a merchant cash advance to finance an equipment purchase, inventory, expansion, remodeling or marketing, consider instead a 12 to 36 month loan from ARF Financial. Our longer terms ensure your payments will be considerably lower with less impact to your cash flow.
You owe it to your business to explore how ARF Financial can deliver the funding you need quickly, at a reasonable rate and with fixed terms. Find out how much you qualify for, using our loan calculator, or learn more about why our loans are a better option for you and your business by clicking the links below.
If you’d like to learn more about obtaining a bank loan through ARF Financial, contact us today at 866-702-4430 to speak with a rep or click here to fill out our free quote form.