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Merchan Cash Advances

FAQs

Got a question? We’re here to help.

  • I already have a merchant cash advance with another company. Can I still qualify?

    Yes! You can even use your cash advance to consolidate and pay off existing loans.

  • What financial documents do I need to provide?

    You’ll need:


    • Driver’s license
    • Bank statements
    • Copy of your credit score
    • Credit card processing statements
    • Business tax returns
    • Voided business check

  • Can I get approved for funding even if I have bad credit?

    Yes! We base our cash advance approval on your credit card sales volume. As long as you make at least $10,000 a month in credit card sales, you may still qualify for a merchant cash advance with bad credit.



  • How do you decide how much of a cash advance I can qualify for?

    To approve an advance, we look at a combination of factors, such as monthly sales for the last three to six months, in order to determine how much cash you can borrow. Usually you can qualify for a merchant cash advance that is 50% to 250% percent of your credit card transactions.



  • How long do I have to pay off the MCA?

    Since your payment amount depends on how many sales you make, the amount of time it takes to pay off your MCA will vary.


    Most business owners pay off their cash advance within 3 to 18 months. You’ll begin paying off your merchant cash advance immediately after you receive your cash.

  • Do I pay interest on a merchant cash advance?

    No.


    While banks require you to pay interest on a loan, a merchant cash advance use factor rates instead.

  • How do you determine the amount I need to repay on my MCA?

    Factor rates for advances, which are also called buy rates, are used to calculate the total amount you need to pay back on your MCA. They can range from around 1.14 to 1.48, and when multiplied by the amount borrowed, tell you how much you can expect to repay on your merchant cash advance.


    For example, let’s say you have a factor rate of 1.2. If you’ve borrowed a $10,000 cash advance, then you’ll repay $12,000. That means you’ll pay $2,000 in order to borrow that $10,000 cash – or 20%.


    To determine how much money each payment will be, cash advance companies set a “retrieval rate,” which is the percentage of daily sales paid back to the company.


    The retrieval rate for cash advances can range anywhere from 8% – 13%. If your retrieval rate is 10% and you made $4,000 on a particular day, then you would repay $400 from the sales you made.


    You will continue to pay the same percentage of your sales until the cash advance is paid off.

  • What do credit cards have to do with cash advances?

    If you’re using credit cards, then a special agreement made by the cash advance company with the credit card processor will automatically deduct the money from your credit card receipts.


    If your receipts are batched daily, then your advance payment will be deducted daily, or whenever your credit card receipts are batched.

  • What if I’m a business owner who doesn’t accept a credit card?

    If you are a merchant who doesn’t accept credit cards, cash will be deducted from your bank account through direct withdrawal, or ACH.



  • Why Should You Get A Cash Advance With Iruka Capital?

    At Iruka Capital, we understand how difficult it can be to get traditional bank loans.


    We know that in today’s competitive environment, access to flexible funds can make the difference between success or failure, even for financially strong businesses.


    That’s why we’ve made it our mission to provide small and medium sized business owners with the funds they need to expand their businesses.

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