1. Merchant Cash Advance
Short of funds? Has the bank turned you down? Need money quickly and you know the bank
will take weeks even months to give you an answer? A Merchant Cash Advance may be the
answer to your problems. A “merchant cash advance” is a form of alternative business
financing in which a private funder “advances” working capital to a merchant based on the
merchant’s monthly sales volume. It usually involves four steps.
1. Eligibility is determined by average monthly credit card sales and sales volume.
2. Cash is received usually within 72 hours of approval.
3. A small percentage of daily credit card sales (fee or factor rate) is deducted from the
business’ deposit account until the balance is paid.
4. Process is repeated but is easier since the business has already been approved.
Advantages
1. Unsecured
2. Amount of funding based on future sales
3. Quick approval – fast decisions
4. High approval rates
5. Greatly relaxed credit qualification
6. Less paperwork
7. No personal guarantee
8. No fixed payment amount
9. Not reflected on credit reports.
10. Fees are tax deductible.
Advances are typically an amount of up to 150% of the monthly credit card volume or
monthly gross sales. The merchant pays back the advance daily on a percentage basis,
called a hold back. A business’ monthly cash flow is very important in determining if and
how much funding it can receive.
Application Process
1. The business completes an application and submits four (4) of its most recent
bank and credit card processing statements.
2. The underwriter will determine the funding amount, factor rate and term.
3. The business receives a proposal and agreement. On occasion, it may be
required to submit additional bank statements, business licenses, lease
agreements, financials and tax returns.
4. The business signs the agreement and returns it to the funding company.

2. 5. Once approved, the funds are deposited in the business’ bank account within 1
to 5 business days.
Qualifications
1. Retail or restaurant business with some exceptions.
2. Accepts credit cards or has high monthly sales revenues (typically $15,000 or
more).
3. Processes $5,000 or more in credit card transactions.
4. At least 15 batches (credit card settlements) per month.
5. In business for at least six months.
6. Able to provide four months of credit card statements or other financial
documents.
7. Not in bankruptcy.
8. No open liens in excess of $25,000.
9. Not a home-base business.
For more information or to start an application, contact:
Ed Slaback
Modern Capital Solutions
eslaback@moderncapitalsolutions.com
713-854-9132