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Frequently Asked Questions

Find the answers to our most frequently asked questions right here. Also take a look at our other educational tips and resources.

What is a merchant cash advance?

A merchant cash advance is an easy, efficient, and secure way to obtain operating or venture capital for your small business needs. It is important to understand that a merchant cash advance is not a loan. A merchant cash advance, also known as credit and receivables funding, is the purchase of your future credit card receivables at a discounted rate. The amount of funding that you can get depends on your monthly credit card sales.

What is the difference between a merchant cash advance and a traditional bank loan?

A merchant cash advances is based on your small business' projected sales revenue and income rather than a credit score alone. Unlike traditional business loans from a bank, merchant cash advances are approved quickly and without excess paperwork. There is no monthly repayment schedule as obligations are met through daily credit card sales transactions.

How can a merchant cash advance from Business Loan Option help fund my business' needs?

Business Loan Option offers a cutting-edge working capital program to help you manage your company's cash needs. Our merchant cash advance program is a simpler and more responsive alternative to traditional small business lending. A merchant cash advance from us offers you the flexibility needed to raise capital so that your business may continue operating normally during even the most challenging financial times.

How does the merchant cash advance program work?

Business Loan Option provides an essential business capital service through which you are able to obtain a merchant cash advance based on your business' revenue. The amount you are eligible for is determined by your average monthly credit card sales.

Remember, this is not a loan, so there is no fixed monthly payment or the hassle commonly associated with traditional bank lending. Because we are purchasing a specified portion of your future credit card receivables at a discount, your cash advance obligation is fulfilled through your daily credit card sales. If sales are high, you pay back the advance faster. If sales are slow, you pay back less each day. This allows your business more financial freedom than a traditional business loan.

How do I apply for a merchant cash advance?

Just fill out our secure online merchant cash advance application today for quick and easy approval. You may also apply over the phone or via fax. Once we receive your application, you will be contacted by one of our representatives.

How do I know if I qualify for a merchant advance?

In order to qualify, you must have at least $5,000 in sales transactions each month for the last three months, be in business for at least a year, and meet a few other very simple requirements. There is no set payback time period.

Will I be approved?

Most small businesses, even those with little or no credit history, are approved for our merchant cash advances as long as they meet our requirements and are able to provide adequate verification.

When will I find out if my merchant cash advance application is approved?

Once you have submitted the merchant cash advance application, we will review it and contact you within 24 business hours. Approval is fast and simple. You may get funding in as little as 3-10 business days.

Why do you check my credit?

Although Business Loan Option does not provide a traditional credit-based loan to merchants, we do exercise a business-friendly scoring model to assess our risk that includes consideration of your credit history, general economic data, and business information in combination with both the business information and the guarantor's information. Viewing your personal credit is a very small part of the approval process.

Will the merchant cash advance appear on my credit report?

No, the merchant cash advance will not appear on your credit report. This funding will have no impact on your debt to income ratios or your ability to apply for additional financing from other sources.

Is there any paperwork involved in the approval process?

There is significantly less paperwork involved in obtaining a merchant cash advance from Business Loan Option than through any traditional financial institution. We will require proof of your business ownership, 6 months of credit card statements, and 3 months of business bank statements.

What qualified as proof of ownership for my company?

We will accept a variety of documents as proof of ownership which include but are not limited to corporate tax return papers, board-meeting minutes, articles of incorporation, or a business license showing your name as guarantor or owner.

Are there any set-up fees for Business Loan Option?

No, there are no application or set-up fees for your merchant cash advance.

Do I need to change my merchant processor?

In most cases, yes, you will need to change to a merchant processor that has a relationship with Business Loan Option. This is the revolutionary way in which the merchant fulfills their cash advance obligation.

Are there fees associated with changing merchant processors?

There are no fees associated with changing merchant processors when your advance is funded. Our merchant processors will guarantee to meet or beat your current credit card processing rates.

What is the interest rate associated with my merchant cash advance?

Your merchant cash advance is not an interest-based loan. Merchant cash advances are not loans at all therefore your financial obligation will be met through a percentage of your daily credit card receivables.

How do I pay the money I borrowed back?

Business Loan Option will base your payments on a predetermined percentage of your average credit card sales over a period of time, based on our merchant cash advance agreement. We purchase a portion of your credit card receivables at a discount when we make the advance for you. There is no fixed payment amount or set time period. Payments roll with your cash flow, so if sales are slow for a period, you simply pay less.

What do you mean by "gross volume?"

Gross volume simply refers to the total sales revenue.

Can I pay early?

Yes, you may repay your business advance early if you are financially secure and ready to do so. Remember, if you experience a high volume of credit card sales, your cash advance will be paid off earlier than scheduled as payment is always based on a predetermined percentage of your credit card sales.

Do I qualify for a discount if I pay early?

No, we do not offer a discount for paying earlier than scheduled. Remember, a merchant cash advance is not a business loan therefore there is no monthly payment schedule.

Can I renew my merchant cash advance?

Yes, and most of our clients do. This is an easy and efficient way of preventing serious cash flow problems. We encourage renewals of your cash advance and offer incentives for doing so.

Do you have any restrictions on how the merchant cash advance is used?

There are no restrictions on how you can use the money received from your business cash advance. Once you receive the funding, the money is yours to use in anyway that benefits your business. You can use it for any type of business expenditure.

What are your business hours?

Business Loan Option operates every Monday through Friday from 9:00 to 5:00 PM EST. We are closed on all Federal holidays. However, you may still submit a merchant cash advance application, send an email, or leave a voicemail during our non-working hours.

I have more questions. Can I contact you?

Of course! We are always happy to help. Feel free to use our online contact form any time, day or night, to send us your questions, comments, and concerns. You may also give us a call at (877)504-3555 or email support@businessloanoption.com. A Business Loan Option representative will respond to your query during business hours.

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This whole experience was easy and awesome. Professional, easy, and pleasant.
- Jane
HR Dept.
My partner and I were skeptical at first, but really needed some extra funds to buy supplies for our next project while we waited on the retention to be paid from the last job, so we decided to take a chance. Glad we did. We got the funds, got our supplies, and a long-term contract.
- M and D