What is a Merchant Cash Advance, and why is a Loan from ARF Financial a Better Choice?

arf 2A merchant cash advance (sometimes referred to as a business cash advance) is an alternative form of financing where the cash provider purchases a fixed amount of a merchant’s future credit card sales volume, typically at a discount of up to 38%. The advance is paid back from a percentage of the merchant’s daily credit card receipts until the agreed upon amount has been paid back. The average term of these advances is from 6 to 9 months. The daily repayment ebbs and flows with the business’s credit card sales. The higher the sales, the quicker the advance is paid back thus raising the cost of funds significantly (APR’s can range from 50% up to 200%).

If you’re a business owner considering a merchant cash advance, consider a smarter alternative — an Unsecured Business Loan or Line of Credit from ARF Financial.

An ARF loan is the preferred choice over a merchant cash advance – rates are lower, payments are fixed, terms are longer and the interest you pay is tax deductible. Repayment has nothing to do with your credit card receipts. As your sales increase, your payments remained fixed. That means you reap the benefits of the increased sales, not the cash advance company.

If you’re seeking a merchant cash advance to finance an equipment purchase, inventory, expansion, remodeling or marketing, consider instead a 12 – 36 month loan from ARF Financial. Our longer terms ensure your payments will be considerably lower with less impact to your cash flow.

Five Important Reasons Why ARF is Better

  1. Rates can be up to 50% lower than a cash advance
  2. Unlike a business credit card advance, we offer both a fixed rate and a fixed term that are clearly spelled out ahead of time. This means that a business owner knows the exact amount they will pay back, and the exact date the loan will be paid off
  3. Loan amounts tend to be higher since they are calculated on total annual sales vs. credit card sales only
  4. Since we offer actual bank loans, the interest paid is tax deductible further lowering your cost of funds
  5. Early pay off options are available