Do You Qualify for a Merchant Credit Card Cash Advance?


When you apply for a merchant credit card cash advance, there are a lot of things that you should consider first. The most important would be the average amount of the transactions made by your company.

For you to see the difference, let’s say there are two businesses that want to apply for a merchant credit card cash advance worth $20,000.

The first business is an average local diner. Assume for this case it earns around $20,000 each month from credit card transactions. Since we are familiar with diners, let’s set the average price for a meal at $30, using a credit card. By looking at the statistics, it would seem that the diner would need to sell at least 667 meals with that price. As you can see, it would seem to be a very hard task.

The second business in our example is a luxury furniture store. In their case, they sell custom made furniture with an average of $80,000 every month, only from credit card transactions. Let’s assume that in each transaction, the average price for a furniture set would be $8,000. After doing the math, you’ll easily see that the store only needs to sell at least 10 furniture sets to reach its monthly average for credit card sales.

It would seem in our case that the first business is more likely the recipient of the merchant credit card cash advance. This is because when it comes to merchant credit card cash advance, they consider the smaller items that are sold in a high volume rather than expensive items that are sold in fewer volumes.

A Simple Guide about Merchant Cash Advance

If you’re a growing business, you might have heard of merchant cash advance. You should never get confused about it because merchant cash advance are really simple and easy to understand. In fact, it’s much better than obtaining a business loan.