A creative and painless way of providing doctor’s offices and other small to midsize companies with fast extra working capital has helped many to take their business to the next level or enabled them to quickly and effectively deal with unexpected emergencies or opportunities. It is called Merchant Capital Advance and is available to businesses that are not home based, at least one year old and accepting credit cards.
It is very easy to qualify for since typical bank loan requirements don’t apply. Buying more inventory, new equipment, an advertising or marketing campaign, moving to a better business location with more traffic or even securing the extra cash for the down payment on a new home are some of the reasons why business owners have requested that type of funding. This program is being offered by American Capital Advance (ACA), a division of American Bancard. While more than 90% of small business owners can’t qualify for a traditional business loan ACA approves close to 90% of all applications and does so within just 24 – 48 hours. Funding takes place within the following 5 to 10 days. Here is how this program works. ACA simply purchases future credit card receivables from business owners at a discount. Based on the past few months of merchant statements ACA determines the average monthly amount of credit card revenues and advances that amount, sometimes even more. The merchant is not stuck with fixed monthly payments afterwards since ACA just takes out a small percentage of each credit card transaction. It usually takes six to nine months to repay an advance and after 70% have been recovered the merchant may apply for a new advance.
