CASH ADVANCE ASSIGNMENT LOAN (CAA)
WHAT IS A “CASH ADVANCE ASSIGNMENT LOAN”?
This refers to two different types of term loans. The first, known as Merchant Cash Advance (MCA), is paid back by the lender taking a percentage of your credit card sales. The second type is a term loan that is paid back through daily or weekly ACH debits from your checking account.
WE ARE NOT YOUR TYPICAL CASH ADVANCE PROVIDER.
Most Cash Advance companies charge a “fee” that is 30% or even 40% of the amount that you borrow. With them, the fee is added to the amount you borrow and then the entire amount is repaid over 8 to 12 months. For example, if you want to borrow $50,000; the lender will give you $50,000 up front and then you pay them $70,000 back over the next 8 to 12 months. This means you are paying a rate that can be 60%, 80% or even more. At Primary Funding we DO NOT do this type of lending. Our target CAA loan would be to an established company that is looking to borrow up to $100,000 and repay it over 12 to 24 months. Our rates are significantly lower than your typical Cash Advance loan AND we charge you a monthly fee based on the outstanding balance. This means you can prepay at any time (subject to a reasonable minimum fee). You will not have a fee charged at the onset of the loan that has to be repaid no matter when you pay off the loan. However, before funding we will want to understand more about your company than just what your bank or merchant statements look like over the past 3 to 6 months. We want to understand your business, how long you’ve been operating and what your trends look like. You can qualify even if you have historical losses, poor credit, etc., but we want to understand where your company is headed and provide lower cost Cash Advance loans to those that qualify. Before you go with a traditional Cash Advance provider, take 15 minutes to talk to us about what we may be able to provide.
WHO CAN WE HELP?
You must have consistent credit card sales or cash flow/deposits coming into your bank account. We can help most industries including restaurants, retailers, wholesalers, distributors and online companies. Generally speaking our clients cannot obtain traditional bank financing that is sufficient to meet their needs. This can include historical losses, lack of collateral, poor credit histories including past bankruptcies, etc. We want to understand your individual need and see if we can figure out a way to provide you with the financing to help your business grow and succeed.
WHAT CAN WE DO?
- Funding up to $100,000
- Repayment terms up to 24 months
- Significantly lower rates than typical Cash Advance providers
- We charge a rate based on the outstanding balance…not a fee piled on top of the loan
- Funding in just a few days
- We can help eliminate the overdraft fees you’re paying to a bank
Give us a call to discuss your individual situation and see how we can help.