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Frequently Asked Questions

A Merchant Cash Advance (MCA) is a type of business financing designed to help businesses gain quick, flexible access to the cash they need. A MCA was originally structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales. The term is now commonly used to describe a variety of Small Business financing options characterized by short payment terms (generally under 12 months) and small regular payments (typically paid each business day) as opposed to the larger monthly payments and longer payment terms associated with traditional bank loans. A Merchant Cash Advance (MCA) is one of the fastest and simplest business funding solutions for Small Businesses in need of working capital.

Fast: Your business can receive funds within 24-48 hours of sending an Application. Simple: The Application is a simple 1-page document (just fill out and send in with 3 months business Bank Statements). Flexible: This program permits much flexibility in the use of capital for your business needs. Easy: Since the payments are connected directly with your bank account (or credit card processing) through automatic withdrawals, you do not have to worry about paying or missing out on due dates. The payment happens automatically, so there are no monthly billing statements, no invoices, no payment coupons, and no checks for you to write.

Merchant Cash Advances are acquired by Applications from Small Business owners. Financial documents are then examined by underwriters in order to verify the Applicant’s current financial circumstance. Once this information has been verified, the financing company determines a financial offer for the Applicant. While applications are typically more relaxed than traditional loans, the application process still provides thorough due diligence to verify the business owner is able to repay the loan.

Will Your Business Qualify?

Approval for a Merchant Cash Advance from United Fundings isn’t based on your credit score alone. We know that credit scores don’t tell the whole story, so we focus on the overall health of your business. We take into account multiple factors, including::

    • Business Revenue
    • Cash Flow
    • Vendor Payment History
    • Years in Business
    • Public Records

The general minimum qualifications for an MCA are:

    • 1+ years in business (under 12 months can qualify in some circumstances)
    • $50,000+ in annual revenue ($5,000+ per month average, stable revenue)
    • 500 minimum credit score (Bad/ Poor Credit is ok)
    • No Bankruptcies, No Liens, No Judgments

We finance Businesses in most industries, including high-risk industries. This includes; trucking, transportation, logistics, business services, attorneys, dental practices, medical practices, automotive, construction and trades companies, restaurants and bars, retailers, manufacturers, gas stations, laundromats and dry cleaners, pharmacies, agricultural, franchises, landscaping, lawn maintenance, pool cleaning, property management, grocery stores, liquor stores, education and daycare, health & beauty, caterers, bakeries, and many more.

No matter what industry you operate in, our expert Financial Specialists will work closely with you to select the best financing option to help you achieve your business’s goals.

A Merchant Cash Advance is best for a Small Business that needs some extra money to get their business to be more competitive and generally more functional. You can spend your Merchant Cash Advance on anything you like, whatever type of business you operate. Merchant Cash Advances can be used in a number of ways. They can act as an emergency fund, helping you cover unexpected expenses. They can also be used to capitalize on a new growth opportunity or business venture.  As an entrepreneur, you understand exactly what the strengths and weak points of your company are. You can fund a variety of business purposes including paying taxes, marketing, renovation, growth, keeping payroll and more – whatever you think is necessary on your path to financial freedom.

Financing amounts vary from industry to industry and from business to business, but generally, United Fundings’ Merchant Cash Advances range from $5,000 to $500,000+. Since each business is unique unto itself, so are the amounts, terms & conditions of their financing. The amount of financing you receive is mostly identified based on your month-to-month business revenues and related bank deposits. To find out more, contact United Fundings today to talk with one of our Small Business Financing Specialists.

Businesses of all types and sizes can analyze the return to the business based on the total cost of the investment. To determine if a MCA is right for your business, determine your Return On Investment (ROI). Short-term ROI can be calculated with a simple formula: Return On Investment (%) = net profit / total investment cost x 100.

Here’s an example: Business A takes a $20,000 MCA which has a total cost (payback amount) of $26,000 and uses the money to add 20 new seats. Those new seats translate to $2,000 more profit a week or $104,000 more profit per year. Using the formula, the net profit is $78,000 ($104,000-26,000). So $78,000 / $26,000 = 3.00 x 100 = 300%. Business A has a 300% ROI after one year.

Merchant Cash Advances are Ideal for:

    • Businesses looking to grow without the hassle of a drawn-out application process at a traditional lender like a bank.
    • Businesses investing in new marketing strategies to fuel growth and drive revenue.
    • Businesses planning an expansion or hoping to capitalize on a new opportunity.
    • Businesses requiring new or additional inventory for an upcoming promotion, the holiday season, or other large volume advance purchases.
    • Businesses needing fast capital in 24-48 hours

United Fundings often provides Merchant Cash Advances to Small Businesses that have been turned down by traditional lenders. We are more flexible than banks in terms of the types of business we will work with, the purpose for which the funds will be used, and in some cases, the credit history of the business and the owners of the business.

Unlike banks, United Fundings has greater flexibility when it comes to reviewing past credit experience. Past credit problems can typically be overcome by a demonstration of current business strength accompanied by a strong likelihood of continued good business trends. However, we do not enter into transactions with merchants who are currently (or about to become) involved in bankruptcy proceedings.

United Fundings wants your business to succeed. We work hard to understand our client’s underlying Business Plan and the unique business features. If your plans make good business sense, it’s entirely possible that we will be able to finance them.

In an industry where many companies use high-pressure sales tactics and cloud the total costs, United Fundings offers a refreshingly honest and transparent sales approach. Think of United Fundings as your silent business partner. We’ll tell you if the product is right for you, and we’ll work with you to help you maximize the return on your Advance, so you can increase sales and profits. Your success is what matters to us most and our knowledgeable Financing Specialists will be beside you every step of the way.

More than 60 percent of our customers repeat transactions with United Fundings. In fact, the customers who have tested the competition usually return to United Fundings because of our honest approach. Growing your business is our business, and we’re happy to provide repeat transactions.

Once you have repaid 50% of your original Merchant Cash Advance, you are eligible to apply for another MCA called a Renewal. In most cases, United Fundings will also increase the amount of the Advance you are eligible to receive.

This is not a loan and there is no Interest Rate; we are a Factoring Company. If you compare our Merchant Cash Advance to a fixed rate commercial or SBA loan for an average of 5-6 years, we are actually charging you less. Further, SBA and Commercial loans are very difficult to obtain, they can take up to 3-6 months to fund, they show up on your credit report, they are very long-term commitments and most importantly, they ask for hard collateral and guarantees. Most Merchant Cash Advances; are approved within 2-3 days time (giving you the cash you need Now), have a short-term commitment, require no hard collateral, and have a high approval rate. Most loans require a fixed monthly payment. United Fundings collection amounts are based on your sales volume. This debt ratio policy we utilize allows the structure of the Advance to support your business’ success rather than drain its funds.

Apply Online, Contact or Call one of our Financial Specialists.

Why not give us a try today?

Whether you need urgent cash to cover an unexpected challenge or you want to take your business to the next level, a small business loan or merchant cash advance can help secure the future of your company. Apply now with United Fundings management and get an answer within 1 business day. The application is free and it will take you less than 5 minutes.