Weekly and monthly payment business loans are now easier to qualify for with more choices and approvals. Fast and easy same day or next day funding on mca merchant cash advances.
Businesses are approved mostly on total deposits each month and the average daily balance in their account. They can consolidate their short term advances and repay weekly or monthly. Apply Below Now!
Call 919-771-4177 for more info.
Frequently asked questions – FAQ: Weekly and monthly payment business loans:
Do I qualify?
Sales over $4,000 per month, 3 months time in business, and credit scores over 600 may qualify. Higher average bank balances and limited overdrafts and nfs also help. The higher any of these are, the more they can qualify for.
What are the terms and rates?
Rates start at upper single digits and higher. The stronger the customer profile, the lower the rates. More challenging profiles can qualify with higher rates.
How much can we get?
Amounts depend on your annual sales, time in business, credit and more. In general, approvals are a 35% to 100% ratio of annual sales. Annual sales of $250,000 may qualify for $25,000 to $100,000. Amounts may be higher or lower depending on other factors.
How fast can we close?
Closing can the same day or next day. Larger amounts for lower rate programs can take longer.
What credit or collateral do we need?
Credit scores 600 and above for weekly and monthly payments. Higher credit scores bring higher approval amounts and lower terms. Scores below 600 may still qualify depending on the cash flow and overall customer profile.
Do you loan to my type of business?
Programs are available for all industries. State and industry restrictions may apply to some plans. List the industry type when applying, or call before to discuss.
In the past, only a daily repayment option was available. A Merchant’s cash flow was under pressure to meet that daily payment.
Because of that daily stress, customers have been calling in and specifically requesting weekly and monthly approvals.
They also ask for consolidation of their short term loans. Most requests are to consolidate merchant cash advances into one longer term business loan.
Recent Case Request
A Timber company in the Southeast wanted a Weekly or Monthly payment for working capital. They were denied. The reason?
In addition to their credit score being too low, they already had 3 current advances.
If a business already has 2 or 3 Advances, it will be hard for them to get any additional financing that has a Monthly or Weekly payment.
It is considered too risky by underwriting. Daily debits have a very high monthly total the customer has to repay. Monthly payments behind 2 daily are never approved.
The most common requests are cash flow emergencies or to payoff short term advances. Merchants often say they cannot handle the advances anymore and must get a longer term. They cannot get out of their daily contracts on their own and need help.
If a merchant was approved for a $50,000 advance with a 12 month repay at a 1.33 rate factor, the daily repayment would be $263 per day.
With a monthly or weekly merchant advance, the repayment is as follows below:
$1,385 Weekly repayment
$5,541 Monthly repayment
Merchants still have to be able to handle the total debt repayment. Once qualified for weekly or monthly payments, they don’t have to worry each day about making the next day’s payment.
This lowers the pressure. It also eliminates the chance each day of a rejected payment and NSF insufficient funds. Merchants won’t get way behind in only a few days.
To qualify for the weekly and monthly repayment options, a longer time in business and more consistent cash flow is required.
Seasonal companies that have inconsistent cash flow and open for less than 1 year may only qualify for the daily or weekly program. For those merchants, the once per day debit lowers the difficulty of making a large payment at the end of each week or month.
Many companies have good overall monthly cash flow, but low cash flow days during the month. A monthly payment allows them to meet their repayment terms.
Different MCA repayment terms
Weekly or monthly ACH repayment option are easily calculated.
Example: A business is approved for a $100,000 “short term advance” for 12 months. The rate factor is 1.27. The daily repayment is $504 (127,000 % 252). The weekly and monthly repayment is calculated below.
Weekly repayment is $504 X 5.25 = $2,646. The monthly repayment is $2,646 X 4 = $10,584. The total repayment is $10,584 x 12 = $127,008.
Customers can look at the daily, weekly and monthly repayment terms to determine which one will work best for them. Merchants call in frequently asking only for a monthly option.
Get approved and pick the best program from those.
Other sources of information include the SBA small business administration