A smarter loan
Is a Business Cash Flow Advance Loans
Right For You?
Cash Flow Advance
Cash Flow Advances or “Merchant Cash Advances” aren’t actually loans, they’re business agreements! Cash Branch will purchase from you a portion of your company’s future profits, at a discount, in exchange for issuing your company an upfront lump sum cash advance. This is an excellent financing tool for small and medium businesses that need a larger amount of cash in time-sensitive situations, while being able to pay it back over a longer period of time.
Term-Length and Factoring Fees for Cash Flow Advance
In a Cash Flow Advance, Cash Branch is purchasing your business future returns at a discount in exchange for an upfront cash advance. The factoring fee is the difference between the dollar amount loaned and the dollar amount paid back to Cash Branch over the length of the term. For example if you qualify for a cash advance of $1000 and wish to pay it back in 3months the factoring fee will be $1.25 per $1. Meaning Cash Branch will have purchased $1250 worth of future revenue for a $1000 cash advance to be paid back over the span of 3 months. Factoring fees per $1 are as follows:
- 3 months -1.25
- 6 months -1.50
- 9 months -1.75
- 12 months -2.00
*Repayments are normally processed every business day but can also be processed once a week for a 3% charge or once a month for a 5% charge
How Does a Cash Flow Advance Work?
After reviewing your business’ cash flow via bank statements, invoices, and/or transaction receipts, Cash Branch will determine the amount of advance your company qualifies for. Advances range from $1000-$5000 and the factoring fee or “interest” rate will be determined by the length of the term, which is normally 3-12 months. Once the advance is processed, you are given a grace period, after which repayment will be made daily (weekly or monthly for an additional fee) by automatic deduction via the business’ bank account until the advance has been paid off.
What Are the Advantages of a Cash Flow Advance?
There are a number of advantages to a Cash Branch Cash Flow Advance. Regardless of business and personal credit, nearly all applicants are approved for some sort of cash advance financing. Pair that with speed, simplicity, and minimal documentation required and you have easy, straight forward process to get the cash and working capital you need fast. By using this type of financing, small and mid-size businesses can meet their cash flow needs even when there’s a dip in receivables.
What Can A Cash Branch Business Loan Be Used For?
Cash Branch business loans are perfect to use for high priced products, services, expenses, and slow periods that you need covered now but need a longer period of time to pay off. They’re a good alternative to traditional bank loans, late fees and credit card debt. If you have bad credit or can’t be approved for a traditional bank loan, that is not a problem, we are able to serve customers with all different credit histories and situations.
Common Uses for A Business Loan:
- Machine repairs
- Buy inventory
- Legal fees
- Tax preparation fees
- Working capital
- Cover a slow period
- Equipment costs