Finance Factory Merchant Cash Advance Review

Finance Factory Merchant Cash Advance is offered by Finance Factory, a marketplace lending platform founded in 2006 and based in Towson, MD. Finance Factory Merchant Cash Advance is available in 50 states (and Washington, DC).

What APRs does Finance Factory Merchant Cash Advance offer?

The cost of merchant cash advances is typically marketed as a factor rate, not an APR. Finance Factory offers merchant cash advance with a factor rate starting from 1.14 to 1.50. The higher the factor rate, the higher the fees. For example, an advance of $20,000 with a factor rate of 1.5 will have a total repayment of $30,000, which includes $10,000 in fees.

However, we ran the numbers and we estimate it has an equivalent APR that ranges from 14% APR up to 50% APR.

Does Finance Factory Merchant Cash Advance charge prepayment fees?

No, Finance Factory Merchant Cash Advance does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the Finance Factory Merchant Cash Advance off early.

How much cash can you advance from Finance Factory Merchant Cash Advance?

Cash advance amounts start at $5,000 and go up to $1,000,000.

What types of repayment method does Finance Factory Merchant Cash Advance accept?

Finance Factory Merchant Cash Advance accepts the following repayment method from the Merchant:

• Split withholding
• ACH withholding

How often does Finance Factory Merchant Cash Advance process payments?

Finance Factory Merchant Cash Advance processes payments daily based on your business's credit card transactions. This means that a percentage of your transactions will automatically be sent to Finance Factory Merchant Cash Advance as payment for your cash advance until the full amount is paid.

Does Finance Factory Merchant Cash Advance charge an origination fee?

Yes, Finance Factory Merchant Cash Advance charges a origination fee of 5% to 10% of the total amount advanced. Finance Factory Merchant Cash Advance deducts the fee directly from your merchant cash advance amount before disbursing merchant cash advance proceeds, so make sure you take this fee into account when deciding how much you need to borrow.

What is the minimum repayment amount required by Finance Factory Merchant Cash Advance?

There is no minimum repayment ammount.

What is the estimated funding time for a merchant cash advance via Finance Factory Merchant Cash Advance?

Finance Factory Merchant Cash Advance can approve (or deny) a merchant cash advance application within 48 hours and fund your merchant cash advance within 1 business day of approval.

What are the business financing requirements for Finance Factory Merchant Cash Advance?

To apply for Finance Factory Merchant Cash Advance, you need to provide the following business documentation:

• Business license
• Business bank account

What do you need to qualify for Finance Factory Merchant Cash Advance?

Applicants with a credit score of at least 660 and up to 750 may be eligible for Finance Factory Merchant Cash Advance. The minimum age to be eligible is 18 or the state minimum, whichever is higher.

Finance Factory Merchant Cash Advance does not have or does not disclose a minimum annual income eligibility requirement.

The Military Lending Act (32 C.F.R. § 232) prohibits lenders from charging service members more than 36% APR on credit extended to covered borrowers. Active duty service members and their covered dependents are eligible to apply for a loan via Finance Factory Merchant Cash Advance. Their rates fall within the limits of The Military Lending Act.

U.S. citizens are, of course, eligible for the services offered by Finance Factory Merchant Cash Advance. Permanent resident / green card holders are also eligible to apply. An uncommon feature is for lenders to offer their services to non-residents. Finance Factory is one of the few that does.

To qualify, applicants may need to provide the following documentation:

• Recent pay stubs
• Proof of income
• Recent bank statements
• Business formation documents
• Driver's license
• Government issued photo ID
• Proof of identity
• U.S. tax identification number

What limitations does Finance Factory Merchant Cash Advance set on the purpose of the merchant cash advance?

Finance Factory Merchant Cash Advance considers merchant cash advance applications for business purposes, such as:

• Business debt refinance
• Equipment purchase
• Hiring
• Inventory
• Lease improvement
• New location
• Payroll
• Product or service expansion
• Technology investment
• Working capital