Merchant Advance Partners

Merchant Advance Partners

Sterling Commercial Credit has several funding partners that offer merchant cash advances. All merchant cash advance companies are not created equally so please be sure to check the BBB before accepting cash from a merchant advance company. Below is a little additional information on the product offered from merchant companies.

How Merchant Cash Advance Work

With this type of financing, you get a cash advance – usually approved and funded in just a day or two – with very little paperwork involved. In turn, you agree to pay back the advance, plus a fee, by letting the funding provider take a portion of your credit card sales each day until the entire amount has been repaid.

While a merchant cash advance can certainly be a quick way to get cash, it can also be quite expensive. Fees can range from 15% to 80% APR of the amount financed. However, merchant cash advance providers measure their fees as a factor rate, which can range from 1.14 to 1.48. The advance amount you receive is multiplied by that factor rate to determine the total amount you’ll pay back. You’ll pay this back by giving the funding provider a fixed percentage of your credit card revenues each day until the loan has been settled, meaning you actually repay a lower amount of money during slower months. Average repayment time frames are 8 – 9 months, but can be as short as 4 months and as long as 18 months. The higher the fixed percentage of your credit card sales you’ll share, the shorter the repayment time frame will be.


Let’s take a look at how you can calculate the true cost of a merchant cash advance. You are advanced $20,000. The funding provider quotes you a factor rate of 1.14. So, this means you will be expected to pay back $22,800. At first glance, it might seem like you are paying 14% interest rate. But, the real number you want to look at here is APR. If the funding provider is taking 10% of all your future credit card sales, and you project to have $25,000 a month in credit card sales, your APR would actually be 36.1% and you would repay the advance in 274 days with daily payments of $83.33.

Who Qualifies

If you don’t qualify for financing at a traditional bank or financial institution, MCAs could be an option. Merchant cash advances are a good solution if you have little or no collateral, limited business history, or a poor credit rating. If you receive a large portion of your revenues through credit card payments (for example, restaurants and retail stores), you can use a merchant cash advance as a short-term financing tool to help with cash flow, purchase inventory, pay other debts, meet unexpected expenses, and more.


  1. Fast Access to Cash.
  2. Easy approval process.
  3. Bad Credit OK.
  4. Pay loan with set percentage of credit card receipts.
  5. No minimum monthly payments.
  6. No restrictions on using your cash.


  1. Higher fees than other alternative loan options.
  2. Less flexibility to change merchant service providers.
  3. Daily deduction of credit card receipts reduces cash flow

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