If you want to get an image for how the merchant cash advance works in real life, then let’s take a look at a more concrete example. For two years Martin Meyers has owned a small bicycle repair shop in a hip part of Minneapolis. After his first summer in business, he had to lay off his only two employees due to a lack of work. This year he again hired and trained two employees who are good workers and who he likes very much. Even though he would like to keep them through the winter and has some work for them to stay busy, he’s not sure he has enough cash-on-hand to sustain the company until the busy season in the spring. He needs ten thousand dollars to keep everything running smoothly until April. This is when he calls Allied Capital Corp.
A helpful and friendly ACC representative explains the process. He can get his funding approved in as little as one day and can have the money deposited into his account in only a few days. All he has to do is go online to ACC’s easy-to-file application page, and provide some basic information about his company. Unlike a bank, there is no long underwriting process and a business doesn’t have to have perfect credit and collateral to be accepted for a loan. With a merchant cash advance, ACC will provide him the ten thousand dollars he needs and charge him a flat fee for the money. Allied Capital Corp will then withdraw a small percent of all his future credit card sales directly from his account until the money is paid back. This makes repayment easy – if business doesn’t pick up until May, no problem! The amount of money withdrawn by ACC depends upon the amount of credit card sales Martin has.
If you own a small or mid-sized business and you need cash for whatever reason, it is well worth it to check out ACC. They are the easy solution to all your funding needs.