Merchant cash advances enable small businesses to access capital quickly. MCA is reimbursed by credit card transactions. Instead of establishing a payment schedule with a fixed amount due each month, MCA companies will charge a percentage of your daily credit card transactions until the loan is repaid. This is useful because it means that the amount you pay per month is directly related to the amount of income you generate. As a flexible lending option, MCAs offer businesses fast financing without significant loan requirements.
After extensive research and analysis, we recommend Fast Financing as our best alternative lender for merchant cash advances in 2019. To understand how we have selected our best choices and to view a complete list of alternative lenders, visit our page.
We at acfa-cashflow.com logo has an easy application process for a merchant cash advance, fast financing, and excellent customer service. Business owners can obtain financing between $ 5,000 and $ 500,000, which is one of the largest advances of any company we have reviewed. Here is an overview of why this is our best choice.
Astro Finance has a simple and short process of application and approval. Before you contact the company, you can fill out an instant quote questionnaire on their website. If you want to partner with Astro Finance, you can either fill out an online application or call the company to provide your information directly to an account manager. You answer a few basic initial questions – where is your business, how long are you open and your total monthly sales – to get an estimate of the amount of an advance to which you may be entitled.
Once you have pre-qualified, the company provides a preliminary financing amount. This is not the amount for which you could possibly be approved, but it gives you an idea of how much advance you could receive so that you can make an informed decision as to the continuation of the application process. We like Astro Finance to give you this early estimate. It’s a great way to understand what you qualify for and whether Astro Finance is the right company for your financial needs. Most of the other lenders we reviewed do not provide any estimates until the application is finalized.
After submitting your application, you get a more precise loan amount. You must then confirm your total monthly sales and credit card sales by providing bank statements and credit card statements.
An underwriter will review all information and conduct a credit check to determine if you are ultimately approved for a cash advance and, if applicable, the amount and conditions. The approval process can be completed in a few hours and funds are available in one day only. This makes Astro Finance an ideal financing option.
Several variables determine which companies are eligible for cash advances. The total monthly revenue and credit card sales of your business, along with your credit score, determine your eligibility. Overall, Astro Finance has quite relaxed skills. The company focuses primarily on income rather than credit rating when considering loan applicants.
Although there are no specific rules on who should be approved, there are several minimum requirements to consider. You must provide government-issued photo identification, a canceled business current account check, three bank statements from your business account, and your last three credit card processing statements.
Astro Finance’s minimum requirements for the time it takes to open a business and its credit card revenues are lower than those required by most lenders. Many lenders require companies to be created for at least one year before they can obtain financing. Astro Finance offers different levels of funding depending on qualifications, with the most established companies qualifying for more funding.
Merchant cash advances are different from traditional small business loans. With traditional small business loans, you make monthly payments, but cash advances are repaid via credit card sales. You repay the loan by giving Astro Finance a fixed percentage of your future sales of Visa, MasterCard, American Express and Discover until you have paid back the pre-determined refund amount.
One way Astro Finance determines the exact percentage it will charge your business is by comparing your total monthly sales to your monthly credit card sales. Businesses with a high proportion of credit card sales generally have a lower fixed percentage, while those with lower credit card sales have a higher percentage. The financial history and other qualifications of your business are also factors to consider for the interest rate.
What makes cash advances so attractive is that payments are tied only to your company’s daily credit card sales. As a result, when sales are slow, payments are low. We appreciate the fact that there is no monthly minimum with Astro Finance. Some of the lenders we have considered require that you pay a minimum amount each month, regardless of your credit card income. The Astro Finance model means that you repay a larger portion of your loan when your business is doing well, while Astro Finance takes less money when sales are down.
Astro Finance does not require you to change credit card processor to get an advance. Many other lenders we have reviewed have specific lists of processors that you must use or ask you to switch to their preferred processor for you to qualify for a loan. If Astro Finance does not have a relationship with your credit card processor, it creates a transfer account. If it works with your credit card processor, it retains the percentage of sales from your Astro Finance credit card and transfers that money directly to Astro Finance daily.
Once the loan is obtained, there is no restriction on its use. Some of the other lenders we have evaluated limit the use of your money. The lack of restrictions and collateral requirements makes Astro Finance loans flexible for small business owners looking for quick financing.
We were very impressed with the customer service we received from Astro Finance. To test the type of support you can expect, we called the lender several times, pretending to be a business owner interested in a cash advance.
Every time we called, a representative responded quickly. These representatives avoided the difficult sale and instead spent time answering our questions. Most of the other lenders we met were more interested in determining our eligibility for a loan before answering our questions.
Throughout our calls, we thoroughly answered all our questions, allowing us to fully understand how the cash advances of Astro Finance merchants work. Some of the other lenders we spoke to could not answer all our questions or offered short answers that did not give us the clarity we needed.
After our calls, the representatives sent us an email inviting us to contact them for any other questions. We have sent follow-up questions over and over to evaluate the type of responses you can expect. Each time, we received an answer – containing in-depth answers – in minutes.
Astro Finance is an accredited member of the Better Business Bureau with an A + rating. In March 2019, only three complaints were filed against the lender. It’s a lot less than some of the other lenders we’ve considered. You can find out more about the nature of the complaints on the BBB website. The company has obtained 4.9 out of 5 stars out of 176 customer reviews. The number of positive reviews was significantly higher than the number of negative reviews, which allowed Astro Finance to become a firm offering a solid service.
The main disadvantage of Astro Finance is that it does not work with online businesses. In order to qualify for a loan, you need a physical location, which many new and small businesses do not have.