Merchant Loans Explained

Merchant Loans Explained

Many companies already have bank lines, pledged their assets, and even used their owner's homes as collateral. Now, they can leverage one more asset to increase working capital: future revenue. This is a relatively new concept. It was introduced about fifteen years ago to provide funding for restaurants. Although there have been many success stories, the product has often been viewed unfavorably because of the high cost and short payback period.

Credit Cash has taken this concept, leveraging future revenue, and applied long standing asset based lending principals. In this way, we are able to provide substantially less expensive loans, to more credit worthy clients.


Is It a Loan, or a Purchase of Assets?

Credit Cash lends money; we do not purchase your assets in advance. We can do this because our loan rates do not violate federal banking regulations. We have the lowest rates in the industry, starting at 6% or using industry parlance, 1:06, by far the lowest rate offered anywhere. Loans have significant tax advantages over cash advances. To see how much you are paying on a cash advance, please use our rate analyzer


How Much Can You Get?

All programs are customized to meet individual client needs. We typically use 5% of gross revenue as our benchmark. Financial strength and low leverage help to increase this guideline. We take the time to learn about and understand your business. At Credit Cash, lending decisions are made by people, not computers.


How Do You Pay It Back?

We offer two methods of repayment; each involve a fixed daily payment (not a percentage of sales). For companies with credit card sales, we take a small amount of revenue from the merchant processor. For companies with little or no credit card revenue, we debit a fixed amount from the client's bank account. You will not have any borrowing base, coupon book, or monthly payment to remember.


How Much Does It Cost?

We charge as little as 1% a month. Our terms range from 6 months to 18 months. Example: A 6 month loan may cost 6%, a 12 month loan may cost 12 %, an 18 month loan may cost 18%, etc. Most importantly, our rates are competitive with other forms of traditional financing. Because our rates are low, and the payback period extended, we solve your cashflow needs without creating new problems.


How Do We Get Started?

Please call us at 212-688-2600 ext. 319 or fill out a brief application.