Everything you need to know about the most practical way to get additional working capital for your business.
Read the frequently asked questions our potential clients ask us about merchant cash advances. We hope to answer all of your business cash advance related questions, but if you have any further questions, please don’t hesitate to contact us.
1. What is the interest rate? This is probably the most frequently asked question about a merchant cash advance. The answer: zero interest. Why? A merchant cash advance is distinct from a small business loanbecause it does not have an interest. Instead, you pay the merchant cash advance provider back via an agreed-upon percentage of your future credit card receivables. Since this is a fixed rate, it is different than a loan because it does not accumulate interest over time.
2. Do I need a collateral to be approved for a cash advance? No you don’t. Plain and simple. Again, a merchant cash advance is not a loan so the requirements are much more lenient than those of a traditional bank loan. Therefore, you don’t need any personal collateral to secure a business cash advance.
3. Is my business qualified to secure a merchant cash advance? That depends on what type of business you own. Assuming your business is legal, it is processing payments, and it has been in operation for at least 6 months, then you qualify for a business cash advance. While most of our customers run businesses that accept credit cards, we also offer a Bank Only Option for those businesses who don’t process credit cards. Examples of businesses that most commonly qualify for and receive funding via our merchant cash advance are restaurants, retail outlets such as grocery stores, liquor stores, boutiques, and convenient stores, service businesses such as salons, florists, spas, barber shops, dental clinics, gas stations, and many others.
4. How much money can my small business qualify for? That depends on your credit card sales volume. The higher the amount you process per month, the higher the amount you qualify for. Typically, businesses qualify between $4,000 to $200,000. The same applies for those businesses who don’t accept credit cards and instead choose to participate in our Bank Only Program. You can use our calculator tool to see an estimate of how much your business is qualified to receive.
5. How long will it take before receive the money? A better question would be, “how quickly can I be funded.” Typically, it takes between 3 to 7 days to approve a merchant but a lot of our clients are approved as quickly as 3 days after they apply for a merchant cash advance. The money is typically funded within a couple days of being approved. We make it a point to approve and fund a merchant in as little time as possible because we understand the urgency to secure additional working capital.
6. I have a low credit score. Will this affect my application? No. Your credit history will be reviewed only as a part of our application process but it will not work against you when it comes to being approved for a merchant cash advance. Business with bad credit are encouraged to apply and many of our clients have received funding with less than perfect credit. Again, a merchant cash advance is not a loan, so it is not tied to your credit score.
Q: How much do I have to pay to apply for a business cash advance?
A: Nothing. Entrust Cash Advance does not charge anything when you apply for a cash advance. Applying is easy; it only takes a minute and you can even apply online.
Q: What fees do I have to pay after I get a merchant cash advance?
A: Entrust charges a minimal fee on your business cash advance which is due at closing, but we never charge our clients any unexpected fees or interest.
Q: What is my repayment schedule?
A: Repayment of the merchant cash advance will depend on your credit card sales. In other words, we, the merchant cash advance lender, get paid when you get paid. Our credit card processor will automatically take care of the whole process so you don’t have to worry about anything, not even writing a single check. We will collect a small percentage of your daily credit card receivables until the cash advance is repaid in full.
Q: I have an existing arrangement with another provider but I need more funding. Can you offer a better deal?
A: Either call our office at or send us an email to find out if we can offer you a better deal and how much money we can offer your business. We treat our clients as partners in progress and we only want what is in your best interest, so contact us to find out the maximum business cash advance we can give you.
Q: Does a Merchant Cash Advance require a personal guarantee?
A: Absolutely not. We offer a business cash advance, not a business loan so we do not require a personal guarantee.
Q. Is there a restriction as to what I can spend the merchant cash advance on?
A: No, as long as the money is used for business-related expenses only. For instance, you can use the money as additional working capital, inventory purchase, equipment acquisition, hiring additional employees, payroll, and more – but not for personal expenses.
Q. Who can I talk to if I have a question about my account?
A: An Entrust Cash Advance representative will always be available to assist you if you have any questions. Our office hours are Monday to Friday, 9:00am to 6:00pm EST. You can also chat with a representative by using our Live Chat Program, Monday-Friday 9:00am to 5:00pm EST.