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Merchant cash advance loans can infuse money into your business when you need immediate funding. They are a fast solution for organizations that need cash now based on future sales. Texas Funding Solutions provides companies with various loan options and resources to help them continue operations and remain successful.

What Is a Merchant Cash Advance?

Merchant cash advance loans are similar to paycheck advances for individuals. The main difference is that merchant advances are specifically for businesses. With a merchant cash advance, you can receive money in advance of sales that you anticipate in the future. Texas Funding Solutions' cash advance offers range from $20K to $1 million. Merchant advances provide flexible repayment terms that work around your needs, allowing you up to 18 months to pay off the balance. These loans don't have any industry restrictions. A cash advance can help you build up a new business until you get regular clients or assist in expanding an established business. Getting approved for a cash advance is often easier than a traditional loan. If you're considering applying for a merchant cash advance, here are three criteria you need to meet:

1. Be in Business for at Least Three Months

A merchant cash advance can help new businesses when they cannot get other funding. Since you only need a business history of three months, you can apply for one of these loans shortly after organizing your company. Your business can use the loaned money to buy equipment, develop a marketing strategy, and cover other business expenses. Other business loans can require you to have a history of at least a year or longer before you apply. 

2. Meet the Minimum Annual Revenue Requirement

At Texas Funding Solutions, our cash advance loans require applicants to have a minimum annual revenue of $250K. There isn't a required minimum profit amount to qualify, but businesses must provide evidence of regular income. You can prove this with current bank statements and tax returns. Applicants are not required to have real estate or other collateral for loan approval. The loan amount you qualify for is based solely on your annual revenue or sales from your business. 

Quick action lets companies make the most of opportunities that come along, but sometimes funding your needs can be tricky. Whether you want to expand your business or adjust to a sudden change in the market, revenue-based business loans can be a great way to secure extra capital.

What Are Revenue-based Loans?

Revenue-based business loans are an alternative type of loan that is growing in popularity. They are well suited to small- and mid-sized companies that need a loan on short notice.

As the name implies, revenue-based loans are tied to the business's gross revenue. The loan is repaid at a rate that scales with the borrower's gross revenue rather than having a fixed repayment scheme.

Revenue-based loans are regarded as a hybrid of the debt and equity lending models since they combine many of the best features of both. They let you preserve your control over your business without exposing it to the risks that come with other loan types.

Running a business requires regular cash flow and working capital. When sales are low, you can look for merchant cash advance loans to meet your demands. At Texas Funding Solutions, we offer cash advances against future sales of your business. Here are the four benefits of our merchant cash advance:

1. Quick Turnaround

Our cash advance loans have a quick turnaround of about 24 hours or less. If you need funds urgently, you can count on us to get the money within a day. For fast approval, you can present your identification, bank statements, and credit card processing statements.

A business bank account number and routing number are helpful for depositing funds. We can check your annual gross sales before approval. If you have a steady volume of credit card sales, we can approve your loan within a reasonable period.

2. Flexible Repayment Terms

We offer flexible repayment terms that are less likely to strain your business financially. We calculate payments based on the percentage of credit card sales. This payment method can be ideal if you operate a seasonal business. You can clear the advance quickly when the sales are significant.