PROS / The lender only requires you be in business for four months.
CONS / You have to apply and submit to a credit check just to receive a quote.
VERDICT / Although CAN Capital could offer a merchant cash advance to young business that have only been in business for four months, the repayment costs could be high, and you may be required to pay as much as 50 percent of your daily earnings.
CAN Capital Merchant Services is a merchant cash advance company that offers merchant loans and business cash advances to small businesses that qualify. You could receive $2,500 to $150,000 in financing. You repay the borrowed amount as a daily set amount or a percentage of your credit card sales, depending on whether you choose a business or merchant cash advance. Your repayment costs could be as low as 12 percent or as high as 35 percent of the advance. The estimate was determined using the calculator on CAN Capital's website, but we were not able to procure a quote over the phone without applying and allowing them to check our credit before they would provide a quote.
Because CAN Capital isn't immediately forthcoming with its repayment costs, it's difficult to be sure exactly how much you would have to pay to receive alternative business funding. There is no application fee and there is no repayment minimum for the merchant cash advance.
Qualifications for merchant loans are more lenient than with some of CAN Capital's competitors. You must process a minimum of $4,500 in credit card sales each month and be in business for at least four months. With your application, you're required to submit your last four months of credit card processing statements and business bank account statements. There is no application cost, but you may be required to pay an origination fee.
The lender lets you choose to repay your financing with a daily percentage of your credit card receipts, ranging from 3 to 50 percent of the amount you process. At 50 percent of your sales per day, you could pay off your financing quickly, but there is no prepayment discount. CAN works with a select group of credit card processors, and you may be required to switch if the lender doesn't work with your processor. Alternatively, you could choose to have a set daily amount deducted from your business bank account. There's no term length for the merchant cash advance, and there's no penalty if your sales slow and it takes longer than anticipated to repay the advance.
CAN Capital Merchant Services offers up to $150,000 in working capital loans for small businesses and only requires that a business be in operation for at least four months and processes at least $4,500 in credit and debit card sales per month. However, repayment costs could be 35 percent or higher. Getting a quote over the phone is difficult because you must submit an application first and agree to a credit check.