Get a longer term merchant cash advance with terms up to 12, 18 or 24 months. Businesses want the longest term merchant cash advance and the longest term business loan choices.
We specialize in longer term loans and longer term merchant cash advances.
FAQ’s Frequently asked questions on how to get a longer term merchant cash advance
How can I get a longer term merchant cash advance for 12 or 24 months?
Your business may qualify for a longer mca merchant cash advance if your credit and time in business is strong enough. Businesses with time in business of over 1 year and credit scores over 625 may qualify for longer terms of 12 months or longer.
I need a cash advance longer than 6 months. How can I get that
Make a list of all longer term cash advance programs and the main requirements. Ask what the approval requirements are. Go down the list and eliminate the programs that you clearly do not qualify for. For the remaining programs, look at the benefits and requirements. Call and discuss the programs with a representative directly to see if you qualify for more than a 6 month term. If you feel your business will qualify then apply.
Longer term merchant cash advance and business loan options.
Monthly payment options.
Many programs have a monthly payment option. Monthly payment business loans are harder to get and be approved for. Credit scores also have to be higher, often 660 or higher. The minimum time in business will need to be a year or more. The average daily balance of the business checking account has to be $2,500 to $3,500 or more.
Leaseback real estate
If your business has commercial real estate with equity in it, one option for much longer financing is to leaseback real estate. Funding amounts will usually be much higher and the terms are much longer, as long at 5 year or more. Payments will be monthly instead of daily or weekly. There can also be major tax benefits to this approach. Contact your tax professional for details using this method.
Asset based loan
Another option to getting a longer term merchant cash advance or longer term funding is to convert the merchant cash advance into something else. That involves a payoff. The new funding can payoff the old funding. One option is a loan against equipment. This type of funding is 24 to 48 months with a monthly payment. Equipment such as construction equipment, semi-trucks and also some types of machinery may qualify.
Accounts receivables financing
Accounts receivables financing does not directly get the merchant longer term financing. However, it can be an excellent way to improve cash flow and eliminate the need for a merchant cash advance or short term loan in the first place.
If a business can improve their cash flow and not have to take out another short term advance, they can avoid taking out a business loan. This type of financing should be seriously looked at when funding options are considered.
“I don’t want accounts receivables financing” or “I don’t want factoring”, some clients tell us.
Many merchants are resistant to merchant cash advance financing. They are afraid their client accounts will not like it and they will lose that account.
Merchants can tell their clients that their accountant recommended factoring to improve cash flow. They can call their client and say:
“My accountant told me to look at factoring. Do you all offer that?”
This question is more of an indirect approach and less threatening to your customer. If they do not want to factor, they will feel less pressured since it was your accountant’s idea and may just say no.
Chance are very high that your customer is already factoring for other clients like your business and your business is not the first one they are would factor.
Extending merchant cash advance terms
Some final options include calling the merchant cash advance companies and asking for longer terms. This is less desirable because it means that you will not be fulfilling the contract terms as originally agreed. Therefore, the merchant cash advance company does not have to agree to longer terms and can consider doing so a default.
Longer term merchant cash advances are not easy to get. The entire risk model on which it works is based on short term financing with the customer. Their risk analysis shows that past due accounts and charge off’s increase a lot if the term is over 1 year.
Funders that do merchant cash advances do not want a long term relationship with their clients for one funding. They want renewals and also repeat business but not a long term with each transaction.
This is especially true if the merchant already has one cash advance. For merchants that already have one cash advance, merchant cash advance companies are reluctant to offer a longer term on any new advance.