High Risk Merchant Cash Advance
High Risk Merchant Cash Advances (MCA's) are offered to high risk merchants by LVRG Funding, one of the fastest growing small business funding companies in the country. There are only a few lenders and small business loan resources that are willing to fund high risk merchants, and LVRG leads the way. High Risk MCA's are available to businesses that have been classified as high risk merchants, and are therefore unable to obtain bank loans or any other form of financing from traditional lending institutions.
Other terms often associated with a High Risk Merchant Cash Advance are: Same Day High Risk Small Business Financing, High Risk Merchant Cash Advance Loans, High Risk Business Cash Advance, Unsecured High Risk Business Loans, High Risk Merchant Money Advancement, High Risk Merchant Cash Financing, No Interest High Risk Merchant Loans, Unsecured High Risk Business Loans, High Risk Business Cash Advances, High Risk Merchant Cash Advance Loans, and High Risk Merchant Cash Advances.
LVRG is able to provide High Risk Business Funding to industries most lenders won’t even consider. Some of the high risk industries that we are able to provide fast working capital financing to, are as follows:
Home Businesses • Sole Proprietorship's • California Businesses • Construction • Bail Bonds • Antiques (No Special Orders)• Rental Or Sales Agencies • Collectibles/Memorabilia • Computer Hardware Sales, Service & Repair • Educational Materials / Seminars/ Self Help • Escort Service & Adult Entertainment • Internet Business Lead Lists (All Types) • MLM – Multi Level Marketing (Product Sales Only) • Modeling Agencies & Talent Agencies • Moving Companies • Online Malls • Online / Mail Order • Event Ticket Sales • Private Investigators • Public Relations Services • Real Estate Related Industries • Security Equipment & Surveillance Equipment / Service Providers • Travel Agencies • Web Advertising • Vapor & Hemp
A Merchant Cash Advance can provide high risk small business borrowers with an upfront fixed amount of cash of up to $500,000 in as little as 24 hours. The funding amount is based upon a percentage of the businesses credit card receivables or daily cash balances using historical credit card receipts and bank statements to determine the initial advance. The business pays back the advance, plus a percentage, often referred to as a discount factor, from a portion of their credit card receivables or cash available plus a percentage. The remittances are drawn from the business customer on a daily or weekly basis until the obligation has been met.
One of the greatest benefits of a High Risk Merchant Cash Advance is that the funds can be used for a host of business expenses.
There are typically no restrictions on how you choose to use your Business Cash Advance or MCA, however some of the more typical uses include:
Buying Equipment – Could a new computer, desk, telephone, cash register or software come in handy? Money to pay for the purchase of necessary business equipment could help boost your profits. And if this cash isn’t readily available in your account, a Merchant Cash Advance can provide you with these funds.
Paying Employees – Instead of running your business like a one-man show, a few extra hands could really help. Spending borrowed money on employee’s salaries can be the answer rather than disrupting your cash flow to cover this expense.
Purchasing Inventory – One of the most common uses for a Merchant Cash Advance is buying inventory. It takes products in stock to make business profitable, so it only makes sense to invest in enough inventory to make sure you always have enough to sell to clients.
Expanding the Business – If your business is experiencing some success, you might want to start thinking about taking things to the next level. A lump sum of cash might be just what you need to get business booming.
Other uses of an MCA may include: Marketing Campaigns • Payroll • Franchise Fees • Debt Refinance • Leasehold Improvements • Expansion and Remodeling • Furniture and Fixtures • Machinery and Equipment • Inventory • Real Estate Purchase • Licensing Fees • Working Capital
High Risk Merchant Cash Advances are non-collateral borrowings, meaning there is no asset protection for the lender. Because there is no surety that the merchant borrower will repay the money or collateral protection for the Merchant Cash Advance, High Risk Business Cash Advance interest rates are higher than banks loans or business lines of credit.
There are a few other reasons your business may be classified as high risk, such as:
- Poor Credit
- Home Based Businesses
- Tax Liens
- Out of the Box Business
- Vapor or Hemp
- New Owner of Establish Business
- Businesses with Large Financial Liabilities
- Files over $200,000.
- Many Position Files – Meaning you have multiple MCA’s currently outstanding
- Construction or Construction Related Industry
Benefits Of A High Risk Merchant Cash Advance:
- In addition to the much easier method of obtaining working capital from an MCA provider than from a bank, the Merchant Cash Advance has a lot of incentives when it comes to small business financing:
- Much quicker approval times from an MCA provider than a bank. This translates to faster cash-in-hand, allowing you to take advantage of current market prices.
- Whereas business loans require you to have collateral in order to gain favorable consideration, an MCA simply requires you to be subject to a limited amount of conditions.
- An MCA is also much more beneficial to the cash flow of a company since it does not require any monthly payments or upfront fees that are characteristic of loans.
- There is no limitation on how the funds acquired from an MCA can be used. Funds that are loaned through a financial institution must be used for the stated purpose by the business. As a result, money from a business loan has a very narrow scope of action as compared to money that comes from a cash advance.
- No UCC-1 is required for an MCA
- No worries about points of upfront fees
- A business stands to benefit more from an MCA because of how payments are made. So, if a business’ income slows down, payments are adjusted to reflect this change in income.
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