What an advance is
A merchant cash advance is a sum provided up front and repaid out of future sales, typically through frequent small withdrawals. It is fast and the paperwork is light. We fund $25,000 to $5,000,000, with funding in as little as 24 hours once the file is complete, and consider FICO 500 and above. No tax returns are required.
Where the model fits in this city
Wikipedia gives Rancho Cucamonga 174,453 residents (2020 census) over about 40.12 square miles. Wikipedia lists local shopping strips and malls, including Terra Vista Town Center and Victoria Gardens, plus Ontario Mills just across Fourth Street. Tenants in those centers deposit card sales daily; the advance withdraws daily too.
By contrast, businesses serving the distribution and manufacturing area to the south are usually paid by invoice, so a daily withdrawal is out of step with when their money arrives.
Run the test with your own numbers
- Take your three weakest weeks of deposits in the last three months.
- Estimate weekly withdrawals for the amount you want.
- Divide: what share of the weak week does it take?
- Check what is left for payroll, rent and suppliers.
For illustration only: a weak week of $8,000 with $2,400 in withdrawals is 30%. Round numbers, not our terms.
Alternatives to compare
If your deposits arrive in lumps, a line of credit may suit better. If you want repayment that moves with sales, look at revenue-based financing. If you already carry advances, MCA relief is the page to read.
What to avoid
- Sizing the advance to your best month.
- Taking a second advance to meet the first.
- Ignoring costs that do not scale with sales, such as rent and insurance.
Questions a careful owner asks the provider
- What is the total amount to be repaid, and over what period?
- Are withdrawals daily or weekly, and are they a fixed amount or a percentage of sales?
- What happens if sales drop, and who decides on any adjustment?
- Are there penalties for early repayment?
We do not publish terms, so these are the questions to carry into any conversation about an advance, with us or with anyone else. A clear, written answer to each of them is the minimum before signing.
If you decide to go ahead
Keep the advance as small as your need. Set a reminder for the end date, track the balance and avoid taking a second advance before the first has run down. If your deposits slip, tell the provider early rather than waiting for a missed withdrawal.
Applying
Bring about three months of business bank statements. The application takes 5 minutes and uses a soft credit pull. Sole proprietors can apply. Apply here. Region: Inland Empire business funding.