Merchant Loans: Fast, Flexible Funding for Small Businesses
Merchant Loans: Fast, Flexible Funding for Small Businesses
Merchant loans are designed to meet your business’s immediate financial needs. Whether you’re looking to expand operations, manage seasonal dips, or invest in new opportunities, a merchant loan provides fast, revenue-based financing without the hurdles of a traditional bank loan.
What Is a Merchant Loan?
A merchant loan (or merchant cash advance) is a type of short-term business funding based on your future credit and debit card sales. You receive a lump sum of cash upfront and repay it through a portion of your daily sales.
How It Works
- Apply and get approved: Approval is based on your business’s sales volume, not just your credit score. Decisions are typically made within a few days.
- Receive funds: Once approved, you get a one-time cash advance, often within 24–72 hours.
- Repayment: A set percentage (called a holdback) is deducted from your daily card sales until the advance and fees are fully repaid. Most loans are repaid in about six months.
Key Features
- Fast approval: Funding typically happens within days, not weeks.
- Flexible repayment: Payments adjust based on your sales volume.
- No collateral: Most loans are unsecured and based on future earnings.
- Revenue-based terms: Ideal for businesses with fluctuating income.
Benefits of Merchant Loans
- Quick access to capital for time-sensitive needs
- No need to put assets on the line
- Minimal paperwork compared to traditional loans
- Funds can be used for inventory, marketing, operations, or facility upgrades
Is Your Business a Good Fit?
Merchant loans are a strong fit for:
- Businesses with steady credit/debit card sales (e.g., restaurants, retail, service-based)
- Seasonal businesses needing repayment flexibility
- Companies that may not qualify for traditional financing
How to Apply
- Determine your funding need: Know how much you want to borrow and why.
- Compare providers: Review terms, fees, and reputations of lenders.
- Gather documentation: Bank statements, credit card processing reports, and basic business info.
- Apply: Complete the application and submit supporting docs.
- Get funded & repay: Receive funds, use them for your business, and repay through your sales.
Merchant Loans vs. Traditional Loans
Feature | Merchant Loan | Traditional Loan |
|---|---|---|
Approval Speed | Fast (24–72 hours) | Slow (weeks to months) |
Credit Requirement | Low – based on sales | High – based on credit score |
Repayment Terms | Variable – % of sales | Fixed monthly payments |
Collateral | Not usually required | Often required |
Eligibility Checklist
- Minimum 6 months in business
- Consistent monthly sales volume
- Clean financial documentation
Keep clear and up-to-date records to improve your approval chances. Transparency helps demonstrate your business’s reliability and growth potential.
Final Thoughts
If you’re struggling to get approved for a traditional bank loan—or you simply can’t wait weeks for funding—a merchant loan could be the fast, flexible solution you need. Whether you’re restocking inventory, covering payroll, or investing in growth, these loans help you stay agile.
Get Started Today
Contact Swish Funding to find out if your business qualifies for a merchant loan. Our team is here to help you secure fast funding so you can focus on growing your business.