Frequently Asked Questions
How does the Merchant Cash Advance program work ?
A Merchant Cash Advance is a fast and convenient way for business owners to get the cash they need to run their company. It is not a business loan, which means no scheduled monthly payments or fixed maturity dates. We are simply purchasing a fixed percentage of your future sales.
How much can my business qualify for ?
Merchant Cash Advances typically range from $5,000 to $500,000 and vary based on your business’ monthly Visa/MasterCard volume OR your total monthly bank deposits. With no obligation, Reachout Capital makes it fast and easy to determine how much you qualify for. Simply complete our online application and know within seconds your approved advance amount. Funding can be in as little as 72-hours. It’s that easy!
Do I need to change my current credit card processor ?
No, we work with many credit card processors so you do not need to change your processor. You will instruct your current processor to change the remittance address so Reachout Capital can receive our share of the daily Visa/MasterCard receivables.
What information do I need to apply?
To apply online, you will need your 4 most recent merchant card statements and the 6 most recent checking account statements.
How much does it costs to apply?
There is no cost or obligation to apply with Reachout Capital. Apply online and know how much you qualify for within seconds.
What are the requirements ?
Our basic qualifications are that you must be in business for at least 4 months, process at least $2,500/month of Visa/MasterCard receivables or a minimum of $10,000 in monthly bank deposits and be less than 60 days late on your lease.
Will poor credit affect my Merchant Cash Advance ?
Unlike a traditional loan request, a merchant cash advance is not based solely on your credit score. The business owner’s credit history is reviewed as part of our qualification process, but it is important to note that a damaged credit history is not an automatic disqualifier for the business.
Does a merchant cash advance require personal collateral ?
No. A merchant cash advance is not a loan and does not require personal collateral.
How often do I have to make payments ?
If your advance was based on credit card sales then we get paid as you get paid. You never have to write a check. Our automated process is designed to work with your credit card processor to collect a small percentage of your daily Visa and MasterCard receivables until your merchant cash advance is settled. However, if your advance was based on total bank deposits then we get paid through a small daily ACH withdraw from your business checking account until the advance is repaid.
Can the daily payment percentage be changed after the advance has been funded ?
No. The percentage is fixed until the advance is paid in full.
Is there an early payoff penalty ?
Reachout Capital’s cash advance is not a loan; therefore there is no prepayment penalty, no fixed payment schedule, no maturity dates, and no minimum monthly payments. At any time, you can choose to settle the advance by paying the remaining balance in full.
What can I use the money for ?
Many of our clients use the money for business development needs like expansion, advertising or stocking up on merchandise. Other uses for the money could be to cover seasonal fluctuations or unexpected maintenance issues that could disrupt business.
Who do I call with questions ?
Reachout Capital at (800) 783-5799 or via email at firstname.lastname@example.org