Published On: March 12, 2024
  • Quick Access to Funds: Rapid access to capital, providing timely support for operational needs or expansion costs
  • Flexible Repayment: Tied to daily credit card sales, allowing businesses to navigate fluctuations in revenue
  • No Impact on Credit Score: Not reported to credit bureaus, offering advantages for new businesses or those with limited credit history or poor credit scores

In the dynamic landscape of business financing, understanding the distinctions between cash advances and traditional loans can be crucial for business owners, especially those venturing into new territories or seeking expansion opportunities.

Flexibility in Funding

Cash advances offer flexibility, allowing businesses to access funds swiftly and conveniently.

To obtain a small business loan, the number of years in operation and the size and industry of the business are important factors affecting loan approval. Credit scores, revenue and profits, and cash flow also play a significant role in determining loan approval.

Unlike traditional loans, where the approval process can be lengthy, cash advances provide a streamlined application process, ensuring business owners can quickly secure the funds they need.

Credit Score Independence

For new business owners or those looking to expand their operation, maintaining a strong credit score might be challenging. Cash advances are not heavily dependent on credit scores. Instead, they consider factors such as the merchant’s cash-credit ratio, existing debts, and overall business performance, providing opportunities for businesses with varied credit histories.

No Fixed Interest Rates

Unlike traditional loans with fixed interest rates, cash advances typically involve a flat markup on the borrowed amount. This structure offers more predictability for businesses as they repay a set percentage of their daily card sales, making it easier to manage cash flow during both slow and peak periods. The repayment for a cash advance involves a flat markup, typically ranging from 10% to 30% of the borrowed amount with no traditional interest rate; for instance, if a business borrowed approximately $5,000, the repayment could vary between $5,500 and $6,500, depending on their credit, and the merchant generally pays back the borrowed amount within 6–12 months.

Ideal for Quick Expansions

For businesses planning to expand, especially when opening multiple locations or for chains, the agility of cash advances becomes a significant advantage. The quick approval and disbursement process enables business owners to maximize growth opportunities promptly, ensuring they stay ahead in competitive markets.

Reduce your operating costs with our full suite of payment solutions

With MONEXgroup as your payment provider you benefit from our all-in-one payment ecosystem with: integrated processing solutions, 24/7/365 support, comprehensive reporting, and much more.
Talk to us today

At MONEXGroup, we cater to diverse business needs with our payment solutions. If you’re a business owner in the early stages of planning expansions, let’s talk about your options. For example, Clover Capital provides a convenient and flexible financial solution with simplified approval, flexible repayment, and no impact on your credit score. Contact us today and discover how our solutions can benefit your business.

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Grow your business with our Full Suite of payment solutions

With over 20 years of industry experience, MONEXgroup creates competitive advantages for your business through customized innovative payment solutions.

Contact us today and discover the right payment solution for YOUR business!

Ask yourself “What is the cost of doing business when having a poor partnership with a payment processor?”. If your payment processing touches various entities, a small problem can quickly turn into a frustrating experience. There is no need for a pieced-together solution with several providers.

As your single point of contact, MONEXgroup is nimble and quick to respond. Have one merchant account, one statement, one monthly fee, one support line, one dedicated account manager. We have multiple gateway relationships, and easy integration with main gateways & acquirers. MONEXgroup is the One-Stop-Shop for all your payment needs.

Consider saving big on operating expenses. Take advantage of our integrated payment solutions and deal with one company for all your payment needs: In-Store POS & Attended Payments, Unattended Vending & Self-Service, On-the-Go & Mobile Payments, and eCommerce, Virtual & Recurring Payments.

We understand the complexity that comes with having to rely on multiple payment processing providers. That’s why, as a MONEXgroup client, you can consolidate your unattended, in-store, on-the-go and online solutions under a single account, with one monthly fee and statement.

By choosing MONEXgroup as your payment processing partner, you benefit from a full suite of Payment Processing Solutions and rely on one trusted partner. We’ve simplified payment processing. Choose our future-proof Integrated Payments Solutions!

At MONEXgroup, we’ve built our reputation on providing the most efficient and extensive level of customer service in the industry. Hundreds of our Google reviews attest to our quality Customer Service.

Technical support is available to you 24/7/365. We pride ourselves with fast response times. A skilled agent is dedicated to your issue and proactively follows up until you are satisfied. We also routinely perform outbound courtesy check-ins to ensure full satisfaction.

We offer quick onsite swap service for terminal replacements. Our rapid response policy ensures that downtime to your business is minimal.

The clarity of our offer and of our statements makes MONEXgroup unique in the industry. Our friendly and proactive Customer Service will patiently review statements with you, to avoid any type of doubt or confusion.

Due to close partnership relationships with acquirers, we able to offer the most competitive Visa, Mastercard and debit card processing rates available on the market. Start maximizing your ROI with MONEXgroup today!

Knowing what drives your revenue is a significant advantage to making informed business decisions. Access the full-suite reporting dashboard to monitor data such as financial transactions, usage statistics, location/regional performance, etc.

Our device allows remote admin access to get diagnostics, check terminal status, set up alerts, and perform updates. You can interact with payment terminals remotely to adjust pricing in real-time, assign permissions to managers, or review transaction history.

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