What is Alternative Funding?

Alternative funding is a form of business funding that allows businesses to get unsecured funds with minimum paperwork even if their credit score is below average. Businesses can also enjoy flexible terms and easy repayment methods. Approvals are quick and in most cases funds are deposited into the business's account within 24 hours.

How does your process work?

Our process is simple, hassle-free, and the fastest way to secure working capital for your business. Our process is perfect for small to medium sized businesses as we do not require collateral or personal security. We provide immediate access to funds regardless of credit score since our funding process is based on how well the business performs. If your business qualifies, you can receive funds in as little as 24 hours.

What is Working Capital?

Working capital is the money used to cover all of a company's short-term expenses, including inventory, payments on short-term debt, and day-to-day expenses—called operating expenses. Working capital is critical since it is used to keep a business operating smoothly and meet all its financial obligations.

Is there a fee to apply?

No, we do not charge any fees to apply or receive an offer.

Why ACR Funding vs a traditional lender?

Traditional lenders such as banks have made it extremely difficult for small business owners to qualify for loans. Banks reject upwards of 80% of the small business loans due to bad personal credit scores of the borrowers, limited time in business, collateral requirements, and other red tape.

How quickly can I receive funds?

Often times we can secure funding the same day you apply. If your business qualifies, we can arrange for same day funding via wire transfer or ACH.

Is there a fee to apply?

No, we do not charge any fees to apply or receive an offer.

What do I need to apply?

Applying is easy and hassle-free. Along with the required information in the application process, we need the last 3 months’ bank statements from your business account. In rare situations, if additional documents are needed one of our team members will reach out to request them.

Do you check my credit score?

ACR Funding does not perform credit checks. However, some lenders may pull a soft inquiry also known as a soft credit check or soft credit pull. Unlike hard inquiries, soft inquiries do not affect your credit scores

What if I have poor credit?

We provide a fast and efficient financing process based on your business performance rather than your personal credit score.

Why ACR Funding vs a traditional lender?

Traditional lenders such as banks have made it extremely difficult for small business owners to qualify for loans. Banks reject upwards of 80% of the small business loans due to bad personal credit scores of the borrowers, limited time in business, collateral requirements, and other red tape. With that said, applying for one of the funding solutions from ACR Funding is a much better option because you get unsecured, immediate access to working capital with flexible repayment terms.

What is a Revenue Advance?

A revenue advance, also known as a merchant cash advance, is not a loan, rather it is an alternative source of fast working capital for your business via a purchase of a portion of your future revenues. Those revenues could be via payment card receivables for example, or other regular revenue streams your business receives. Unlike a loan that will require a fixed monthly payment amount, your business will only make flexible daily remittances to repay the revenue advance, based on a percentage of actual future receivables.

Are there industries you do not provide funding for?

We offer funding for a large number of industries, including high-risk industries like construction and contracting. However, we do not provide funding for businesses associated with gambling, firearms, or adult entertainment.

Do I still qualify if I already have an outstanding loan?

Yes, you can still qualify if you meet the requirements with no effect on your traditional bank loan.

ACR Funding

Aug 15, 20213 min read

What Is a Merchant Cash Advance? – Is It Right For Your Business?

Wondering what options you have for alternative business funding? A Merchant Cash Advance (MCA) may be right for you. In this article, we’ll help you to understand if it fits your needs.

What is a Merchant Cash Advance?

A Merchant Cash Advance is not a true “loan" but rather an advance on the future revenue generated by your business. Essentially, it is “secured” by your future sales. This means you can easily qualify for this type of funding even if your business has struggled in the past, or if you have bad credit.

How Does a Merchant Cash Advance Work?

The provider of the MCA gives you a lump sum, which you can use however you need for your business. In return, they purchase a percentage of your future sales which is paid via a split on your credit card sales or as a regular ACH debit from your business bank account. The credit card split percentage is sent directly to the merchant cash advance company through your processor each time you batch out your sales. ACH debits are withdrawn only on Monday through Friday.

As you sell more products or services, the credit card split or daily ACH debits will continue until the cash advance has been repaid in full. It’s really that simple. All you need to get started are your last 3 months of bank statements and credit card processing statements. The merchant cash advance company will use that information to determine how much money you can receive as an advance. If you don’t accept credit card payments, don’t worry. Your merchant cash advance will be calculated based on your bank statements only, and your repayment will be via ACH debit.

What Are the Benefits of a Merchant Cash Advance?

Easy to qualify – As long as you’ve been in business for at least 6 months and your sales have been consistent, you can qualify for an MCA even if you have bad credit or have been through bankruptcy. In fact, ACR Funding can qualify you even if you’re currently in an open bankruptcy.

No fixed monthly repayment – Your payment is based on a percentage of your sales. If sales slowdown, your payments can be adjusted. This translates to merchant cash advances being ideal for businesses with strong seasonal revenues – such as retail stores and restaurants.

Ideal for funding expansions or upgrades – If you want to expand your business or upgrade your store, a merchant cash advance can be a great way to get funding. And, as your sales grow with your expansion, you’ll be able to pay off your MCA more quickly.

Is a Merchant Cash Advance Right For Me?

MCAs are usually more expensive than comparable small business loans, so you should be confident that you can afford the higher cost of working capital associated with them. However, if your business needs immediate capital, and you cannot qualify for a traditional loan, or you want an advance with an income-based repayment scheme, MCAs may be the right choice. You can be approved and funded for an MCA in as little as 24 hours versus a traditional bank loan which can take weeks or even months. MCAs have shorter terms than traditional bank loans which can be good if your sales are consistent and the daily ACH payment or credit card split percentage still allows you to meet all your financial obligations.

ACR Funding is the Right Choice for Your MCA Needs!

If you need a reputable provider of merchant cash advances, ACR Funding is the perfect choice and is here to help. If you still have questions, please visit our FAQs and requirements pages, or contact us to talk to one of our funding specialists. Get the funding you need to grow your business now. Our representatives are waiting to assist you.