Merchant Cash Advance
Business advance funding to leverage your future sales or recurring revenues’ to support business growth
Business Advance Funding
Based on 90% of business revenue. No collateral. Protect your assets
Revenue Based Finance
To $20 million. ABN and trading 12 months. Clean credit, no ATO debt
Supercharge your Growth
Terms from 3 to 36 months with flexible repayments
These business advance funding facilities are best used as a short-term funding options where the cost of the money is lower than the benefit from the funds. Merchant cash advances do not appear on your balance sheet.
Suitable Businesses for Cash Advances
- Retail and hospitality with high EFTPOS sales
- Purchase inventory to cover peak seasonal demand
- Employ and train extra staff to meet customer expectations
- Seasonal businesses located in tourist areas
- New business owners not eligible for bank finance
- Minimal assets to provide for collateral
Advantages of Business Advance Funding
- High approval rate over bank finance. Repayments assessed on current and future credit card sales
- Ideal for retailers with high merchant transactions. No fixed installments and term
- Merchant Cash Advance is simply leveraging off your future customers to fund your business growth
How is Merchant Cash Advance Repaid
- Your approved provider will setup a pass through account on your behalf
- Holding back the agreed percentage of your daily credit card receipts until the full advance is paid back
- The typical rates are 10-30% based on your industry and credit score
- The remaining sales balance is sent to your business bank account as a daily deposit
Cash Flow Finance
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
How to Qualify for Merchant Cash Advance or Revenue Based Finance?
- Merchant must be owner & trading for 12 months plus
- Good spread of broad customer base
- Minimum business turnover of $50K per month
- Require 12 months banking & merchant statements
- Business bank accounts must show consistent positive bank balances
- Credit score above 500+ and paid defaults with explanations
- Cash advances over $200K require recent management accounts and financials
Alternative Business Loans
Accrutus Capital has solutions to improve retailers cash flow gaps via multiple working capital facilities
Retailer should consider Business 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, and subscription based business models qualify for Business Cash Advances funding due to consistent revenue and high credit and debit card sales. Operate from leased or owned premises, ideal to manage cash flow high and lows.
Merchant Cash Advance industry wrap
Best suited to the retail and hospitality industry where the business can take 2 years to be stabilize and build a loyal and consistent customer base.
Seasonal businesses especially those located in tourist areas can use a merchant cash advance to stock up in readiness for the new season’s customers.
Stiff competition from online retail sales, changing demand from export markets, fluctuating exchange rates and changing consumer trends are significant issues in managing cash flow. Plus having to compete with the bargaining power to major retailers your cash flow can receive a battering.
Business Advance Funding
GET $100K to $5M
This is not an application, no credit check.
We can help
Pay ATO Debt
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Cannot provide collateral
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No Pre-sales
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Cash Flow is seasonal
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Shipping or supplier delays
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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.
Every small business will experience late payers during its existence. Whether this from many small monthly customer's or one large client from an ongoing project, it can leave SMEs struggling with cash flow problems due to the payment gap between products or services delivered, and the invoices paid.
If this toxic customer payment pattern continues for weeks or even months, it is time for a small business to look for alternative capital to alleviate the cash flow problems affecting its business. The solution could be through unsecured business loans to provide the much-needed short-term funds or invoice financing to cover this gap. More information on short-term business finance option on our FAQ page.
The other option is collections and engaging a solicitor in demanding the invoices owed are repaid where the age of the debt is 60 days plus. Many small business owners are reluctant and cautious about upsetting existing and new customers plus the added expense and time of chasing late payments through legal methods.
To better manage the financial stability of the business; accessing short-term business finance are a proven strategy to smooth cash flow. When a smart business operator can preempt, deal with and prevent late payments, the small business will undoubtedly be more profitable, enjoy consistent growth and enable expansion through equity investment, which ultimately guarantees the business a bright future ahead.
Business Advance Funding 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
Running a small business isn't easy. Rising costs, staffing shortages, and unpredictable markets can make it feel like you're constantly putting out fires.
Research shows that unpaid invoices can sink your business fast. If you have one payment default, you've got a 24 per cent chance of going under within a year. Two defaults? That risk jumps to 42 per cent. Three defaults, and you're looking at a 62 per cent chance of insolvency.(1) Those unpaid invoices add up, and they add up fast. More information about ways SME can overcome financial stress.
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