Merchant Cash Advance with NAB
For small businesses, navigating the loan and cash advance landscape can be extremely overwhelming. Understanding that there are options available is important for all business owners. Whether the money is needed to fund new inventory, marketing initiatives, a new location or unexpected costs, NAB cash advance is a timely solution.
What is a Merchant Cash Advance?
The concept is simple. Basically we are ‘purchasing’ a percentage of your future credit card receivables. So, since you are selling us your receivables, it is not technically a loan and should not affect your debt to income ratio. You never send us a single check. We simply take a percentage of each daily batch amount until your advance amount and finance fee is paid back in full. If your sales increase, you pay us back faster, but if your sales fall off, you pay us back slower. You are protected if your business slows and we assume the risk.
Merchant Cash Advance is also sometimes called ‘credit card receivables financing’, a merchant cash advance is when a financier advances a lump sum to a business, which is then paid back by pulling a set percentage from debit and credit card sales. This payment is made automatically with every credit card transaction until the advance and finance fee is repaid.
This is an excellent solution for small businesses looking to grow without having to take out additional loans at a bank. Advance amounts can fluctuate based on specific needs and repayment can be made on terms that make sense for the business. However, typically we will approve between 80% and 150% of your average monthly revenue.
Is NAB Cash Advance Right for Your Business?
The process of getting up-front cash for your business is simple with NAB. We will determine how much to advance your business based on your credit card processing volume over the past 6 months. Then, as transactions roll in, we collect a small fixed percentage of those daily credit card receipts. You never send us a check to make a payment. You will just receive roughly 75% or more of your total daily sales until the advance is paid back – typically in 4-16 months time.
We also offer loans with fixed payment amounts based on you total deposits, including cash, if that makes more sense for your business. We are happy to give you a quote for both options. All we typically need are your most recent credit card processing statements and bank account statements. And the best part is, we can deposit your advance amount in typically 3 days or less from the time you agree.
Who can benefit from a North American Bancard Cash Advance?