Is a merchant cash advance a loan?
Generally, a merchant cash advance is structured as a purchase of future receivables rather than a traditional loan. A business receives an advance and remits an agreed amount through daily or weekly payments that may vary with sales. The legal structure, cost, payment method, and required disclosures depend on the provider and transaction, so applicants should review the written offer carefully before accepting.
How does a merchant cash advance work?
A provider advances business funds in exchange for an agreed portion or amount of future receivables. Repayment may occur through daily or weekly remittances, and revenue-based structures can vary with sales. Steady Capital Solutions connects applicants with independent financing providers, so underwriting, fees, contract terms, and payment mechanics are determined by the provider making the offer.
What can Texas businesses use merchant funding for?
Business-purpose funding may help cover supplies, payroll, accounts payable, inventory, marketing, equipment, expansion, and other operating expenses. It may also help address cash-flow shortages caused by low sales or slow receivables. Funds must be used for business purposes, and the permitted uses, documentation, and conditions are determined by the financing provider and written agreement.
How much merchant cash advance funding is available?
The service catalog lists revenue-based advance funding from $10,000 to $5,000,000. Actual eligibility, approved amount, fees, repayment structure, and disbursement may vary by applicant, provider, product type, and state. Charges may be deducted or withheld from the amount disbursed, and transaction-specific written disclosures should be provided when an offer is made.
Do I need a specific credit score to apply?
Steady Capital Solutions states that some financing options do not require a specific personal or business credit score. Approval is still subject to provider underwriting and may consider business history, cash flow, receivables, sales activity, and other information. Applicants should provide accurate financial details and review all provider requirements before accepting an offer.
Is collateral required for a merchant cash advance?
Collateral requirements depend on the financing product and provider. The catalog identifies secured and unsecured options, including revenue-based advances and working capital funding. Unsecured structures may not require traditional collateral, while a provider may require a personal guarantee, UCC filing, or other documentation. These conditions should be confirmed in the written transaction documents.
How quickly can merchant funding be approved?
The catalog states that revenue-based advance approvals may be available in hours rather than weeks, while related bridge financing may provide approval decisions within 24 hours. Actual timing depends on application completeness, provider underwriting, business documentation, and transaction requirements. Funding delivery is controlled by the independent provider rather than Steady Capital Solutions.
Are there fees or APR charges for a merchant cash advance?
Pricing, fees, repayment terms, and equivalent cost metrics vary by applicant, provider, product type, and state. Fees or other charges may be deducted or withheld from the disbursed amount. Applicants should receive transaction-specific written disclosures, including APR or equivalent cost metrics where applicable, and compare the total obligation with expected business cash flow.