Merchant Cash Advance

Merchant Cash Advance solutions

Merchant cash advance does not suit every business and is certainly not a long-term funding solution. As this is an advance against future sales, the owners must manage the needs of the business and the ability to pay back the merchant cash advance without impacting daily operations.

• Purchase new stock or equipment, hire and train more staff, upgrade shopfront or renovate your office
• Fund a new franchise, or franchise your existing successful brand where you can leverage off future income
• Pay off urgent debt or consolidate tax and superannuation liabilities to improve your cash flow
• Need to pay for goods being imported before leaving the dock or shipping and delivery costs
• Marketing costs to launch a new product, run an event to build brand awareness

Accrutus Capital has solutions to improve retailers cash flow fluctuations through our multiple working capital facilities.

Retailer should consider Merchant Cash Advances which are designed with speed and simplicity. Ease of repayments through daily, weekly or monthly schedules and automatically deducted from your bank account. No checks to write, no transfers, and no surprises, its short-term funding without the stress so you can focus on making money.

Retailers and the hospitality sector mostly qualify for Merchant Cash Advances due to their high credit and debit card sales, operate form leased or owned premises and experience seasonal cash flow high and lows.

Merchant Cash Advance to manage your capital

Cash is simply the flow of cash through the company over time. Working capital is required to pay for wages, daily functions to provide the goods and services being sold. The cycle repeats where the revenues received provides new cash that can be used to finance further productions and sales and increasing the companies economic value and profitability.

As a business owner you must tightly manage the cash flow generated and what factors impact those flows. This is a business skill essential to the liquidity and long-term viability of the business. While a company can have solid income and assets and be profitable, there are times when cash is short and other financing methods needs to be implemented.

For high merchant transactions business, working capital can be accessed through your future sales via the merchant cash advance facility. The management of working capital involves managing 4 aspects within a company.

• Inventory (stock or goods still being production)
• Accounts receivable (debts that are owed to the company)
• Accounts payable (money the company owes to suppliers)
• Cash

Shortage in working capital can prevent a company meetings its payroll and damage supplier relationships if accounts are regularly overdue. If managed responsibly, a Merchant cash advance can smooth out cash flow gaps and help you negotiate discounted terms  with your creditors.

Merchant Cash Advance repayment

Your approved Merchant cash advance provider will setup a pass through account on your behalf to hold back the agreed percentage of your daily credit card receipts until the full advance is paid back. The  rate varies between 15-25% based on the risk profile of the borrower. The remaining balance is sent to your business bank account daily.