Here is how it works

Let’s use a Retail Store as an example: You currently own a retail store that requires additional funding for payroll, renovations, bills, and etc. and you are processing an average of $20,000 a month in credit card sales. Now you can qualify for a merchant cash advance of $20,000.

Your business was approved for a $20,000 merchant cash advance based off its average monthly credit card receivable volume. The way it works is as follows.

The way this is set up is your selling your future credit card sales to The Cash Advance Store. So in this case you will be selling $27,500 of your future credit card sales for $20,000 today. Thus, the cost of the $20,000 cash advance will be $7,500 which goes to The Cash Advance Store (This of course is just an estimate for demonstration purposes and is not an accurate number).

In most cases in order for The Cash Advance Store to get paid back, you are required to switch to one of our partner processor(s) so they can monitor and control your daily credit card batches. Typically a small portion of anywhere between 18-25% of your daily credit card batches are withdrawn to go toward repayment of your merchant cash advance.

Once you are setup with the processor and your credit card terminal is reprogrammed, and you sign the merchant cash advance receivables purchase agreement, The Cash Advance Store will provide the financing for your Business in a form of a cash advance and wire the money directly into your business account.

At this point your business continues as normal, and you continue to swipe your credit cards like you were before. The only thing different is the fixed percentage of your daily credit card batches will be deducted and paid to The Cash Advance Store. This will occur until your cash advance has been paid in full which in this scenario $27,500 is settled.

Let's just say week #1 you processed $2,000 in Visa and MasterCard transactions and your setup on a 20% daily split, you will notice that $400 has been deducted and paid to The Cash Advance Store until you meet your obligations.

Once you meet your obligations, The Cash Advance Store will discontinue debiting any funds off your daily batches.