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Working Capital Loans and Merchant Cash Advances

Although frequently misused, Working Capital Loans and Merchant Cash Advances offer short-term, quick fix solutions that can be a life-saver if used with caution and care.  Nevertheless, for a high-revenue, now-or-never opportunity or bridge they can be your best option. 

SCHEDULE FREE BUSINESS FINANCE STRATEGY SESSION
(Without affecting your credit!)

Small Business Benefits

This is possibly the shortest road to financing. This provides the opportunity for owners to capitalize on now-or-never opportunities for your business. It may also be used as a bridge financing vehicle between opportunities with much better rates.

Small Business Uses

Short Term loans and frequently misused by business owners, and we attribute this to lack of guidance and information. These financing vehicle provide the ability for owners to expand, purchase equipment, and fill in the gap for a lack of resources in the business.

Education and Guidance

At American Small Business Advisory we advocate for the smart use of short-term capital loans. Our advisers will guide you on the different options where these opportunity can be deployed. We often use it as a bridge into a loan with much better terms.

Working Capital Loans and Merchant Cash Advances

Working capital loans and merchant cash advances can be understood as the purchase and sale of your business’ future revenue at a discounted price, which is usually represented by a factor rate. For example, a borrower or “buyer” can purchase 15% of the projected revenue of your business over the course of the next 10 months. If your business is generating $25,000 per month, this equals about $250,000 in revenue and the effective purchase amount comes out at $250,000(0.15) = $37,000. Let’s now assume the agreed discount amount is of 20% $37,000(0.80) = $29,600. Your business would be effectively selling $37,000 worth of future revenue for $29,600 right now. 

In this particular example the discount would be represented by a factor of 1.25 and the loan terms would be the following: 

Funded amount: $29,600 at a factor of 1.25 and paid back daily or weekly over 10 months or until $37,000 is reached.

  • This product can be very useful when speed of capital is of high priority.
  • Creates the ability to capitalize business projects and ventures that come and go quickly.
  • Credit score is not as heavily weighed as revenue consistency during the underwriting process.
  •  
  • Payments are usually structured on a daily or weekly basis.
  • Total cost of capital is usually higher than other options
  • Can create cash flow constrains if not used
  • properly.

Get $5,000 - $500,000

Micro-loans start at around $5,000 and cap at $500,000!

Terms of 3-18 Months

Terms are customized according to your needs and up to 18 months.

Starting at 1.12 Factor Rate

Our factor rates start at about 1.12 and go up from there depending on different variables.

What are the basic qualifications? (Based on American SBA previous clients)

500 Minimum Credit Score

Credit score is not a significant factor! Approved with as low as 500.

From $10,000 Monthly Revenue

No complicated terms. Straightforward payback amount and payment plan.

3 Months in Business

Credit score is not a significant factor! Approved with as low as 500.

How do you apply to a working capital loan?

Working capital loans are the easiest and fastest application process for business funding. You can easily apply by filling up a quick 5-minute application and sending in your last four months of bank statements. 

Your advisor will go over your documents and if there’s any information missing they will be in touch shortly. 

You can find the application by clicking here.

Items you'll need:

  • Driver's License
  • Voided Check
  • Bank Statements
  • Signed Application

Compare Other Loan Types

Type of Loan

  • WCL and MCA's
  • Business Term Loan
  • Lines of Credit
  • SBA Loans
  • Personal Loans

Amount

  • $5,000 - $500,000
  • $25,000 - $500,000
  • $10,000 - $1,000,000+
  • $5,000 - $5,000,000
  • $5,000 - $30,000

Interest Rate

  • Starting at 1.12x >
  • Starting at 7.0% APR
  • Starting at 6.5% APR
  • Starting at 6.0% APR
  • Starting at 5.99% APR

Credit Score

  • 500 > Credit Score
  • 680 > Credit Score
  • 630 > Credit Score
  • 680 > Credit Score
  • 600 > Credit Score
  • Characteristics:
  • $25,000 – $500,0000
  • Interest Rates: 7% >
  • As Fast as in 48 Hours
  • Requires:
  • 3 Years in Business
  • 680 > Credit Score
  • Characteristics:
  • $10,000 – $1,000,000 +
  • Interest Rates Starting at 7.0% APR
  • As Fast as in 24 Hours
  • Requires:
  • 1 Year in Business
  • 630 > Credit Score
  • Characteristics:
  • $5,000 – $500,0000
  • Factor Rates Starting at 1.12x
  • As Fast as in 48 Hours
  • Requires:
  • 3 Months in Business
  • 500 > Credit Score
  • Characteristics:
  • $5,000 – $5,000,0000
  • Interest Rates Starting at 6.0% APR
  • As Fast as in 2 weeks
  • Requires:
  • 4 Years in Business
  • 680 > Credit Score
  • Characteristics:
  • $25,000 +
  • Interest Rates Starting at 5.99% APR
  • As Fast as in 48 Hours
  • Requires:
  • Consistent Personal Income
  • 600 > Credit Score

Working Capital Loans and MCA's

  • Characteristics:
  • Get $5,000 - $500,000
  • Factor Rates: 1.12x >
  • Speed: As fast as 24 Hours
  • Requirements:
  • 3 Months in Business
  • 500 > Credit Score

You'll be surprised what we can do for your business.

Know your options in just a few minutes!

Applications are now open

What Industries can Benefit?

Virtually all industries can benefit from working capital. Some more than others, but given this product provides such flexible use-cases, opportunities arise at any situation.

Transportation Industry

Short term capital loans have proven to be a great option for the transportation industry! Funds are likely used for buying trucks, equipment, or repairs. Often a very popular option for this industry.

Retail Sales Industry

Many retail store owners require some extra capital to leverage economies of scale to take advantage of discounted prices and lower costs per goods sold!

Medical Industry

Many medical professionals that require an upgrade in their equipment or an expansion of their current operation resort to short-term capital loans. Often secure lower rates than the average.

Professional Services

Professional services often have the same issue than other independent contractors. There's a demand for work, but no capital for the required resources. This solves that issue!

Construction Industry

Contractors often have many projects ahead that are left untreated for lack of proper resources. These loans are able to bridge that gap and allow work to happen!

Restaurants and Bars

Time-in-time again we service owners with broken essential equipment. Every day without it is costing them money. This product serves useful as it is the fastest road to funds.

Our Achievements

A+ Better Business Bureau Grade We've been accredited with an A+ grade with the BBB for 4 years in a row!
Michael Wallace - Managing Director "American SBA shed light on options I didn't even know I had..."
Graciela Broward - Founder and Owner "You won't find a better and honest team of financial consultants, promise.."
Jason Malave "...this revolutionized my capital acquisition process dramatically."
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Satisfied Business Owners

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Loans Under 14% Approved

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Free Financial Audits Done

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Successful SBA Approvals

Have specific questions?

Give us a call or email us!

submit@americansba.com
Click to Call (833) 735-4800

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