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Are You Eligible for our Merchant Cash Advance?

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Time in Business
1 Year Minimum
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Yearly Annual Business Revenue
$200,000+
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Business Term Loans
$10,000 to $2M
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business target
Personal Credit Score
550+

How Does a Merchant Cash Advance Work?

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1. APPLY FOR CASH ADVANCE

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MERCHANT-CASH-ADVANCE

2. GET APPROVED!

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3. GET FUNDED

MERCHANT CASH ADVANCE FEATURES

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1 Page Online Application

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3 Months Bank Statements

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24 Hr. Approvals

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fast business loans

24 Hr. Funding

 

The merchant cash financing option provides same-day funding for any business with uneven cash flow or seasonal businesses. Ideal for any business with a lot of daily credit card transactions.

 

What is a Merchant Cash Advance?

A Merchant Cash Advance sometimes referred to as an MCA, a Business Cash Advance (or Cash Advance), is when a company (referred to as merchant cash advance lenders) receives a lump sum of a cash deposit or payment into their business checking account from a merchant cash advance company. The MCA is not a microloan.

In exchange, the business owner or merchant agrees to pay a percentage of their future sales (debit card or credit card sales) until the cash advance is paid back.

The remittance rate or repayment period is either daily repayments or weekly payments. Your company is selling its future credit card receivables at a discount. The result is that the repayment terms are “factored” and is not considered interest. Therefore, technically, this is not a loan. Hence the name “cash advance” and not a cash advance loan

How does the MCA work?

Cash Advance Loans are a reflection of your company’s ability to repay a percentage of sales. It’s based upon your daily accounts receivables and credit card transactions and not your personal credit. Alternative Lenders (the MCA lender or cash advance companies) look at your cash flow, and not your credit history.

The merchant cash advances provide merchant funding anticipating future monthly revenue and future receivables that reflect daily debit and credit card processing.

The result is that repayment is variable as a reflection of daily sales.

A traditional loan offers only fixed payments regardless of the ebb and flow of your daily or monthly business revenue. A fixed payment loan is a term loan. With a cash advance, you are selling your future receivables at a discount.

What is an example of how a MCA works?

As an example, with short-term loans, I’ll borrow $100,000 and repay $115,000. The business owner who is looking for merchant cash, will sell $115,000 in future receipts and receive $100,000. One reason for the ease and popularity of receiving the merchant cash is unlike the term loan, approval is typically not contingent on the business owner and his or her credit. As a result, the approval rates are high and it’s quick access to money.

 

How do paybacks work?
  • Flexible payback amounts with a competetive rate and payback periods.
  • Payment amounts are made daily or weekly to improve your available cash resources.
  • This small daily percentage that you pay is known as your “holdback.” The holdback “percentage” can range from low single digits to as much as 30%.
  • The full amount is repaid over an extended period and reflects your daily card sales. As a result, you can only guesstimate the length of the advance.

 

When your daily revenue is low, your repayment for that day will be small. When your revenue is high, your repayment will be larger.

MINIMUM QUALIFICATION REQUIREMENTS FOR MERCHANT CASH ADVANCES

  • Minimum Credit Score Requirement is 500
  • Special programs for scores 650+ and 700+
  • The minimum period of time in business is 6 months
  • Minimum $200K gross annual revenue
  • We can pay off 1st and 2nd position loans or go behind them as a 3rd position
  • Current on rent or mortgage
  • Liens up to $200K on a payment plan is OK
  • We’ll consider lower lien without a payment plan

SUNWISE CAPITAL CASH ADVANCE VS. BANKS OR CREDIT CARDS

Sunwise Capital Banks Credit Cards
Business Experts Yes Yes No
24 Hour Approvals Yes No No
1-Page App Yes No, up to 24 documents Yes
500+ Credit Score Yes No 680+ Yes
Payment Options Yes No No
Repeat Benefits Yes Yes Yes
$500 Guarantee Yes No No

Merchant Cash Advance Program

Variables That Determine Rates And Terms

  • Time in Business
  • Type of Business (Sole-Prop, LLC, etc.)
  • Industry
  • Annual Revenues
  • Cash Flow
  • Average Daily Bank Balances
  • Bank Statements – Checking Account
  • Personal Credit Score
  • Business Credit Score
  • Web Presence (social media, company website, etc.)
MCA

Merchant Cash Advance

  • No Cost
  • No Obligation
  • 24 Hour Approvals

SUNWISE CAPITAL MCA REQUIREMENTS VS. BANK LOANS

Sunwise Capital Banks
FICO 500+ 680+
Annual revenue $200k $1M+
Months In Business 6 Months 2-3 Years
24 Hour Approvals Yes No
24 Hour Funding Yes No
Required Collateral No Yes
Payback Based on Cashflow Yes No
Prepayment Penalties No Yes

Pros (Advantages)

  • Rates can start as low as $1.18. As an example, for every $100,000 borrowed, the flat fee interest payment is $18,000 after the tax write-off, the interest rate comes out to $11,700 at a 35% tax rate.
  • It’s Quick, Simple, and Easy with very minimal paperwork.
  • Payback is a small percentage of your daily credit card sales.
  • You don’t need to change your merchant payment processors – we could batch through ACH or if your merchant processor is on our long list of approved providers.
  • Variable payback – pay less on slower days and more on busier days.
  • The MCA does not report to your personal credit report. Poor credit, OK. Discharged bankruptcies after 1 year.
  • Use of funds for anything business-related. No collateral.
  • Funding 24 hours
  • Funding Amount $10,000 up to $1,000,000
  • Renewals after fifty percent repaid.
  • We increase amounts and give you better rates with each renewal once you have established a relationship with us.
  • Special programs for Retail Businesses, Online Business, Restaurants, Retail Shops, Liquor Stores, Auto Repair and Healthcare
  • Excellent program for businesses that have excessive NSFs and low average bank balances on their business bank account statements that may not qualify you for traditional business loans. Superb business loan options with flexible terms and fast access to capital.

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Cons Of Merchant Cash Advances

  • More expensive than traditional bank financing; High interest rate
  • Variable payments and payback
  • Not fixed payments
  • Daily or weekly payback – no monthly payments options
  • Must accept credit and debit cards

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When to Consider a Merchant Cash Advance?

A merchant cash advance may be an excellent option if you need cash quickly for working capital needs, and you know you can pay it back in a short amount of time. For example, making payroll or purchasing inventory that sells right away.

If this sounds like an excellent fit for your business, start exploring different merchant cash advance options that work with your sales and budget. We’ll be here to help.

Here’s What We Offer:

  • Our application process is quick, convenient, and is entirely online with a no-cost, no-obligation application
  • As a small business owner, you don’t have to provide any collateral or assets, and there’s no maturity date
  • No-cost, no-obligation application
  • Our MCA lending team quickly analyzes your company’s revenue, based on credit card transactions, to give you a decision in as little as one business day. Time to funding is the same day or the next business day. 

Sunwise Capital is a leading merchant cash advance company. We offer excellent alternatives to the line of credit.

With this lending model, you receive the cash advances that you need quickly to alleviate cash-flow problems and then repay the funding through variable daily payback based on the ebb and flow of your business.

Everything about the advance is customized to suit your company’s unique needs. Best of all, our business cash advance underwriting and approval process are quick, so you can get the money that you need in a flash.

How to Calculate Merchant Cash Advances

Step-by-Step Process: How to Calculate CASH ADVANCES

Since the amount that you are paying is more than the amount borrowed, how do you calculate what the repayment schedule will be?

This factor will vary among small business lenders. The quoted percentage helps you estimate the total amount to be repaid.

For example, if you agree to pay the amount borrowed plus 15%, then you can multiply the amount borrowed by 1.15.

You will then need to take into consideration any processing fees associated with the merchants cash advances terms.

To determine how long it will take to pay back the cash advance, consider the amount borrowed, and multiply it by the factor rate.

Borrow $100K with a factor rate of 1.17. Multiply $100K by 1.17 = $117,000.

Assume a 9% holdback of the daily credit card business.

Divide your monthly sales ($100K) by 22 (days in the month). Take that number and multiply it by the holdback. $100K / 22 = $4545 (average daily sale).

Multiply that number of $4545 X 9% = $409. That is what you’ll pay daily.

Divide $117,000 (total amount owed) by $409 = 286 (payments to equal $117K). Assuming 22 days in the month, take 286 and divide by 22, and this equals 13 or the approximate number of months to repay the loan.

You can use loan calculators to determine your lump sum amount, factor rate, and term to generate the repayment amount. We offer an example below as well.

KEY NUMBERS FOR CALCULATIONS

  • Amount of cash advance you will receive from the lender
  • Factor rate (converted to a decimal)
  • Fees (may be referred to administrative cost, origination fee, or closing fee)
  • Average daily/monthly credit card sales
  • Percentage to be withheld from daily sales

With this information, you can calculate:
approximate daily payments, how long it will take you to repay the loan, and the total amount you can expect to pay

  • Step 1: To figure out how much your payment will be, take your average daily credit card sales amount and multiply it by the percentage to be withheld from daily sales.

  • Step 2: Calculate the total amount of the loan by taking the amount of cash advance you will receive and multiply it by the factor rate.

  • Step 3: To see how long it will take you to repay the loan, take the total amount from step 2, and then divide it by the daily payment (from step 1).

The loan amount or capital for merchants is a percentage of your monthly credit card receipts. This amount includes debit card sales and your daily credit card sales. To calculate your total borrowing amount, multiply your credit and debit card annual revenue by 10 to 13 percent.

Here is an example:

Let’s assume your company generates $200,000 a year in annual revenue. Take 10 to 13 percent of that number. That means you’ll receive between $20,000 and $26,000 as the borrowing amount.

$200,000 x .10 = $20,000

$200,000 x .13 = $26,000

 

What can you expect to pay?

The risk to the MCA provider determines the factor rate. One significant difference between an annual interest rate and factor rate is the factor rate is not in percentages like interest rates.

The factor rates show as a decimal figure. They range from about 1.1 to 1.5 based upon the risk. Again, using the example above, we’ll use the $20,000 cash advance amount.

Your total repayment is between:

$20,000 x 1.1 = $22,000

$20,000 x 1.5 = $30,000

Small Business Cash Advances for Running Your Business

All companies experience ups and downs when it comes to money. That’s especially true for small businesses because they tend to have a lot less “wiggle room” where cash is concerned.

When you need some extra cash to keep your business going, however, taking out a conventional bank loan can be a bit challenging. After all, it means paying hefty application fees, completing a complicated and lengthy application, and waiting weeks or even months for a decision.

By opting for merchant cash advances from Sunwise Capital instead, you can get the money that you need without all the hassle. Simple, straightforward business cash advance loans.

Sunwise Capital, an online lender of merchant cash advance loans, uses a scoring matrix with over 200 variables. On the other hand, traditional bank loans and institutional lenders like credit card companies will just focus primarily on the business owner’s personal credit score at the big three credit bureaus, and secondarily on the other factors.

CONSIDERING MCAs vs Conventional Loans?
  • Growth, Business Expansion, or Opportunity
  • New Hires & Payroll
  • Advertising & Marketing
  • Equipment & Inventory (funding options alternative to equipment financing)
  • Renovation & Upgrades

Learn More:

Fixed Payments vs. Variable Payments

We know your sales fluctuate from day-to-day. his business finance alternative is not a fixed amount of money paid back each day like a traditional long-term loan, but it’s a percentage of your daily card sales.

This percentage is referred to as the “hold back.” It is the % of future credit card sales. The result makes it hard to calculate the total cost of a merchant cash advance.

Use the annual percentage rate calculator formula to get an estimate of what you will expect to pay on a merchant cash advance.

Traditional Loans for Businesses

Small businesses in need of working capital or a line of credit, only had one type of financing for business operations: apply for business loans from the bank, credit union, or traditional lender and hope for the best.

When applying for business loans from a bank or big institution, you typically must have a “sound business purpose.”

Today, banks have mostly moved away from giving shortterm business loans to small businesses.

Unfortunately, the process to secure traditional term loans is more hassle than it’s often worth. Plus, the requirements and bank covenants are too often prohibitive.

To be approved by a bank, business owners typically need considerable assets and some collateral. Banks often also require a personal guarantee – from all the principals.

Traditional lenders also primarily base their decision on your FICO credit score and business credit, which prevents many businesses from getting financed.

Is a Merchant Cash Advance a Safe Option?

For decades, small businesses in need of an infusion of money had limited financing options: apply for a traditional small business loan and hope for the best.

Today, banks and traditional financial institutions have mostly moved away from providing this business type of funding as the primary source of small business loans. The process is more hassle than it’s often worth. Plus, the requirements and bank covenants are too often prohibitive.

To be approved by a bank, you typically need considerable assets and collateral. Banks often also require a personal guarantee – from all the principals. The banks also primarily base their decision on your FICO credit score and business credit bureaus and not credit card sales. This lending approach prevents many companies and their owners from getting business financing.

So is a Merchant Cash Advance a Safe Option?

Taking out a bank loan or business line of credit can be a gamble. You need a certain amount of money now, but due to the unpredictable nature of operations, you’re wary about being locked into potentially high, inflexible monthly repayment. The chart above on the page shows a comparison of some of the advantages of a MCA vs. a bank loan.

How Can I Get Out of a Merchant Cash Advance?
  1. Try to replace your merchant cash advances with a more traditional small business term loan
  2. Use collateral or assets to get an asset-based loan
  3. Renegotiate
  4. Try a consolidation loan
What Happens if Small Business Owners Default on a Merchant Cash Advance?

Defaulting on any loan can cause a cascading effect. If you signed a PG (personal guarantee), the merchant could come after your personal assets. Most MCA companies do not ask for that PG.

However, if you switch bank accounts, change your merchant account processor, start taking mostly cash or impede and hamper the ACH payments, this can constitute default.

Apply for a merchant cash advance from Sunwise Capital with no risk, cost, or obligation. 4.8-Star Trustpilot Rating

  • In no time, you can find out what you qualify for and have cash in your hands before you know it
  • Our professional services are backed up by a $500 guarantee
  • If you find a business loan or a merchant cash advance with a better rate, we’ll either beat it or give you $500

Get the cash advance you need for your business by applying for Sunwise Capital Merchant Cash Advances MCA today.
As online lenders, we can also provide alternative financing as a capital loan, SBA loans, or invoice financing.

KEY TERMS IN THE MERCHANT CASH ADVANCE INDUSTRY

Advanced Amount

When your MCA application is approved, you will receive a lump sum in the form of an advance. Your company’s financial health determines the amount of money you receive. The amount you can borrow reflects your typical credit (and debit) card sales. As little as 50 percent of your monthly sales can qualify you for an MCA, while as much as 250 percent of your monthly sales may qualify.

Payback Amount

The owner’s obligation to repay the cash advance is the payback amount. To calculate the payback amount, multiply the amount advanced by the factor rate. Factor rates can range from 1.15 to 1.55

% of Future Card Sales (Holdback)

This is the agreed-upon percentage of daily credit card receipts withheld to reimburse the MCA, and this percentage is called a holdback. The holdback can range from 5% to 30%, depending on the strength of your business.

Projected Monthly Card Sales

Most MCA lenders review the last 3 months of your company’s business bank statements to calculate your average monthly credit card revenue and project that number into the future.

Daily Payment

Payments are made daily or weekly with a merchant cash advance instead of a fixed monthly payment from a bank account until the advance gets paid in full. The fees reflect your ability to repay the merchant cash advance.

Daily Interest Rate

Technically, there is no loan involved; instead, there is a cash advance against future credit and debit card sales. Therefore, there is no “daily interest rate.”

APR (translated for the factor rate)

A factor rate, rather than an interest rate or an annual percentage rate (APR) on a traditional loan, is used to price a merchant cash advance (MCA). Factor rates can range from 1.15 to 1.55, depending on the type of industry in which the company operates. For the total amount of the loan, multiply the advance amount by the factor rate. EX. Borrow $100,000. To calculate the amount to be repaid, multiply the $100,000 by the factor rate. If the rate is 1.20 (the factor rate) then $100,000 X 1.2 = $120,000.

Repayment Term

Merchant cash advance providers automatically deduct the agreed-upon amount from your credit or debit card sales until the agreed-upon amount gets paid in full. A merchant cash advance gets repaid in as little as three to twelve months. If your credit card sales are high, the advance gets repaid quicker. Likewise, slower sales mean a smaller payment and a longer-term to pay it off.

Total Financing Cost

To determine how much your MCA will cost, multiply the total amount of money you received by the factor rate. As an illustration, let’s say you want to borrow $20,000 with a 1.25 percent MCA factor rate. It costs $25,000 to complete your MCA ($20,000 multiplied by 1.25), which includes the $20,000 advance and the fees of $5,000.

Click any of the terms above to see the definitions.

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Vivian listened to our needs and then worked hard to deliver a solution that matched our needs and in less than a week! Highly recommended!

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I have known this company for a few years now, and keep being surprised about their dedication and creativity. There is a constant eagerness to come with solutions that work.Vivian and her team are definitely not in this to make a quick buck. They really partner with people. Which is refreshing in the financing business.

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She is so fast and honest.

She is so fast and honest. really happy to work with her.

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Sunwise Capital

Our business got a loan through Sunwise Capital so we could upgrade our equipment to take on bigger projects. The customer service was excellent all the way through the whole process. Vivian was very helpful and made the process very fast and painless. We will certainly use them again in the future.

- Justin Kadash

Merchant Cash Advance

  • No Cost
  • No Obligation
  • 24 Hour Approvals