Get an Advance Based on Future Revenues

Established in 2015, Quick Loans Direct provides a fast and efficient financing process based on your business performance rather than your personal credit score. We’ve helped thousands of small businesses grow with revenue advances (RA) and merchant cash advances (MCA)

Revenue Advance

There may be a time when you need an extra revenue injection to help boost your cash flow, but prefer to repay the loan based on future sales. Such is a scenario where a revenue advance may be the right source of financing for you.

A revenue advance (RA), also known as a merchant cash advance (MCA), is not a loan. Rather, it is lump sum advance that is based on future revenues such as credit card sales. Essentially, you are selling a certain portion of your future revenues in exchange for quick access to capital. Think of this as a pay day loan for businesses.

There are two fundamental repayment structures for an RA:

  • Receive a lump sum with the stipulation that the funding institution receives a certain share of your future credit and debit card sales;
  • Automatic daily or weekly ACH withdrawals directly from your bank account — at a fixed amount.

Notably, both repayment options come with higher than average fees. Yet, the risk criteria that financial institutions establish for a revenue advance is assessed differently than business lines of credit or business loans. Your daily receivables or credit card receipts are a fundamental metric for the financing decision which includes a risk factor used to calculate the additional fees for the advance. It’s important to keep in mind that interest rates for a revenue advance are generally higher than other funding options.  

Though the credit requirements are often less rigorous than a line of credit or loan, a revenue advance can be more costly. Therefore, carefully weighing the cost versus the benefits in securing this type of financing.

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