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Merchant Cash Advance

If your small business needs to optimize cash flow, a Merchant Cash Advance could be the answer.

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Working capital financing is tailored to help small business owners manage their cash flow needs. Terms generally range from 3 to 24 months, with payments that can be daily, weekly, or monthly, and may be fixed or based on your business revenue.
For instance, if your company has received a large purchase order, you’ll need funds to produce the product. You’ll get reimbursed by a retailer once the product is sold, but in the meantime, you need to cover expenses like payroll, rent, and supplies to keep your business operational.

Similarly, for doctors and dentists, you provide services typically covered by insurance, but insurance payments can be delayed. You might need a working capital loan to maintain operations until the insurance company processes your payment.

How Much Working Capital Do You Need?

Calculating your business’s working capital needs involves a straightforward formula. Generally, working capital is the difference between current assets and current liabilities, but this figure can vary monthly as bills are paid.

A more accurate way to determine your working capital requirements is to consider your operating cycle—the time it takes your business to produce and sell a product.

For some businesses, like restaurants, this cycle is very short. For others, such as clothing manufacturers, it can be more seasonal. Assess your cash flow during each operating cycle to figure out how much working capital you’ll need.

Unexpected events can occur, such as kitchen fires, equipment breakdowns, or tax payments. To address these issues, we can deposit the necessary funds into your account within 24 hours.

What kinds of working capital are available?

Generally, there are three types of working capital financing:

  • Term Loans: These are traditional loans with a fixed term, fees, and a repayment schedule.
  • Business Line of Credit: Similar to a credit card, this provides a credit limit and finance charges. You must make monthly payments, but you can borrow and repay as needed, usually in larger amounts than a credit card would allow.
  • Merchant Cash Advance: This option uses your future revenue as collateral. You sell a percentage of your future revenue to the funder, who receives payments as your business earns. Payments can be fixed or vary with monthly revenue.

How Much Working Capital Do You Need?

Calculating your business’s working capital needs involves a straightforward formula. Generally, working capital is the difference between current assets and current liabilities, but this figure can vary monthly as bills are paid.

A more accurate way to determine your working capital requirements is to consider your operating cycle—the time it takes your business to produce and sell a product.

For some businesses, like restaurants, this cycle is very short. For others, such as clothing manufacturers, it can be more seasonal. Assess your cash flow during each operating cycle to figure out how much working capital you’ll need.

Unexpected events can occur, such as kitchen fires, equipment breakdowns, or tax payments. To address these issues, we can deposit the necessary funds into your account within 24 hours.

What kinds of working capital are available?

Generally, there are three types of working capital financing:

  • Term Loans: These are traditional loans with a fixed term, fees, and a repayment schedule.
  • Business Line of Credit: Similar to a credit card, this provides a credit limit and finance charges. You must make monthly payments, but you can borrow and repay as needed, usually in larger amounts than a credit card would allow.
  • Merchant Cash Advance: This option uses your future revenue as collateral. You sell a percentage of your future revenue to the funder, who receives payments as your business earns. Payments can be fixed or vary with monthly revenue.

What does it take to qualify for working capital financing?

Many businesses qualify for working capital loans with just proof of their business operations and assurance that the loan will be repaid.

At Grear Energy Capital, our requirements look like this:
Generally, personal credit scores are less significant compared to other business credit factors. However, as a guideline, if your credit score is above 500, you’re likely in a good position!
We require a minimum of 6 months in business.
$20,000 per month or $240,000 in annual sales, with at least three deposits per month.
US citizenship is not required. Great Energy Capital only requires that the business owner be a legal resident.
Any owner can sign the contract, regardless of their ownership percentage.

How to Apply

To apply for a Great Energy Capital working capital loan, you’ll need to have a few things ready, including:
  • Your business organization documents
  • Most recent tax return
  • Last 6 months of bank statements
  • Driver’s license
  • Voided business check
Once your paperwork is prepared, you’ll complete an application to discover the terms your lender can offer to help maintain your cash flow as your business progresses.
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(888) 533-0162

316 Prospect Ave Hackensack NJ
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