What is merchant financing?

Merchant financing is an overarching term that refers to lending options for businesses that sell merchandise with a storefront and/or eCommerce store. Merchant financing often refers to merchant cash advances.

How does merchant financing work?

The way merchant financing works is that the lending agency takes a percentage from the business’s earned revenue at the end of each day, week or month depending on the terms. This is based on credit and debit transactions when the business makes a sale.

How to Apply for Merchant Financing

Businesses who apply for merchant financing will find that some financiers are completely digital and the application process takes place entirely online.  Businesses must first research approved MCA processors. The financing companies will need the business owner or financial manager’s identification, loan application, bank information including statements, account number, and routing number, and the last 3-6 credit card processing statements. The process and funding is usually very quick – within 48-72 hours of application.