Merchant Cash Advance Blog

The new pioneer. Headquartered in Arizona, Fastpoint sits in the heart of the American West. Blazing hot in the daytime, bone-chillingly cold at night the American desert is an inhospitable land any way you look at it. While air conditioning and swimming pools make modern life tolerable, this wasn’t always the case. Sitting in an air-conditioned office, it’s hard to imagine what would have possessed so many to leave comfortable lives behind, cut a path across the country, and forge a new life in such an inhospitable place. But as I talk daily with merchants who have braved a foreboding…

We’ve talked with dozens of business owners this week who have mentioned that business has been improving lately. These business owners have used merchant cash advances to get through what they described as “tough times,” and now have renewed hope that their businesses are going to survive, and even flourish. I’m not sure if insight from the Merchant Cash Advance industry can be turned to as an early indicator that a stronger economy is emerging, but after the last few years, any good news coming out of the small business sector is something to be celebrated. It also got me…

Consider the Cost: Traditional Loans vs. Merchant Cash Advances The amount that you pay for funding when using a Merchant Cash Advance is typically looked at as a factor rate. The factor rate is derived by looking at the relationship between the amount of money advanced and the amount of money “paid back.” If an advance of $10,000 is given and an amount of $12,800 is repaid, this would be described as a 1.28 factor rate. While a Merchant Cash Advance is not technically what would be considered “factoring” in the financial world, factor rates have traditionally been used to…