FAQs | Lily Advance | Merchant Cash Advance

What is a Merchant Cash Advance? How is it different from a bank loan?

A Merchant cash advance is not a loan. Rather, it’s the purchase of the business’s future receivables at a discount price.

Those receivables are collected as a percentage of the business’s gross income. Unlike a loan, which the payback will increase based on time, the purchased amount of receivables in an MCA stays the same regardless of when the advance is complete.

How much money can my business obtain?

Typically an initial advance will be between 20-80% of the monthly debit/credit sales (or other deposits) volume.

Can you fund business owners with bad credit?

Because our approval is primarily based on the financial performance of your business, we can even fund your business if you have a sub-500 credit score.

How long until I receive funding?

After receiving a complete application, which includes recent business bank statements (and debit/credit sales statements, if applicable), we will have an offer for you within hours. Once accepted and the contract returned, funding can take place in as short as a few hours. The entire process, from application to funding, can be completed same business day or next.

How long do I have to pay back the advance?

There is no fixed period in which the advance has to be repaid. However, based on the daily withholding percentage, advances are usually paid back in 3-9 months, but may be as short as 2 months or as long as 18 months.

What if my business doesn’t accept debit/credit sales?

If your business has limited or no debit/credit sales, we can offer financing based on your overall monthly sales from other sources (cash, checks, etc). Typically, advances are 40-80% of your overall monthly revenue.

How many locations can I finance at once?

If you are business owner with multiple locations, we can finance each of your independent locations based on their individual sales totals.

I just opened my business, how soon can I get an advance?

In order to provide an MCA we need to see a sales trend, meaning about at least 3 months of sales history, in order to decide how much financing we can make available. New businesses, can apply for an MCA with Lily Advance after being in business for as short as 2 months.

What if my business is closed for a period of the year due to seasonality?

If your business is closed for a few months of the year, we will tailor an advance for your specific situation.

It is best to contact us just prior to opening your doors for the season in order to maximize the advance size.

How many times can I use Lily Advance?

Lily Advance can finance your business as many times as you like, at any time you like. We cater to businesses that use our services 3-5 times yearly and businesses that only use us when there is a specific opportunity at hand.

Minimum Requirements