By: Kevin Mercadante
|Loan Types||Merchant Cash Advance (MCA)|
|Loan Amount||Based on business’ needs|
|Repayment Terms||From 60-260 days|
|APR||Fixed rate of 19-40%|
|Best for||Quick funding|
Tiger Funding provides tailored Merchant Cash Advances (MCAs) to fast-growing small- and mid-sized businesses that have been turned down by a bank or prefer not to take out a traditional loan. Unlike loans, MCAs are lump sum payments in exchange for an agreed fixed cost, and are usually repayable within a shorter period. In other words, an MCA is a cash advance against future revenues. In Tiger’s case, the loan amount, cost, and repayment period are open to negotiation. The “turn” (MCA-speak for term length) is typically between 60 to 260 days.
MCAs are best suited to small businesses that have strong and stable monthly revenues, have a solid plan to boost revenues in the coming weeks or months, and need a cash injection of $5,000 to $250,000 to fund expansion. Tiger Funding serves businesses in the construction, retail, restaurant, salons and spa, automotive, manufacturing, and medical industries.
A Merchant Cash Advance from Tiger Funding works on a fixed cost, as opposed to bank loans that work on an annual percentage rate or APR. Calculating your repayment is simple: the funding amount plus the fixed cost equals the amount you need to repay. Unlike a traditional business loan, there aren’t really any additional features to discuss. The entire process is as simple as applying, deciding if you accept the fixed cost and repayment period, and then paying it back.
To apply, call one of Tiger’s funding specialists or fill out a short form on their website. Applicants must meet 3 criteria to be considered for a Tiger Funding MCA: at least 6 months of business operations; at least $10,000 per month in revenue; and significant potential for future business growth. Applicants won’t be asked to provide a full credit history; all Tiger will want to see is an estimated amount of monthly credit card receipts, total monthly revenue, and the cash advance amount being requested.
Tiger funding reaches a decision on most applications within 3 business days, and in 95% of cases its answer is “yes.” If your business is approved for an MCA, Tiger will present you with an offer and notify you of the terms. These terms will be based on the amount being requested, and on how quickly Tiger estimates your business will be able to repay the advance. If you accept the offer, Tiger will transfer the cash directly to your bank account on the same day.
Tiger Funding doesn’t advertise specific amounts, but MCAs are typically suited to businesses needing a $5,000 to $250,000 cash injection. When applying for an MCA for your business, you will be asked to submit the advance amount you need. Tiger Funding will determine the advance amount it is willing to offer you by looking at your business’s gross monthly revenues, the length of time your business has been operating, and your business’s potential for growth.
When assessing your application, Tiger Funding will also determine your fixed rate, or Factor Rate, based on the information you provide in your application. It will also determine a Turn, referring to the number of days for repayment. Depending on the advance amount and fixed cost, the Turn can typically be 60-260 days.
Where bank loans usually require fixed monthly payments, Tiger will take daily micropayments from your business account on business days, based on the percent of sales you purchased. In months where revenues are lower than expected, Tiger will take smaller daily repayments, and in months where revenues are higher than expected, it will take higher repayments. With that said, Tiger promises never to change your daily repayment amount without consulting you.
Tiger Funding was founded in 2013 and is a privately held independent sales organization, meaning it isn’t affiliated with any bank. Delaware’s Better Business Bureau, which rates companies based on their online reviews, gives Knight Capital an A-.
Customer support staff can be reached by phone during business hours on 855-462-4249. They will also contact you if you fill out an online form. It takes 2 minutes to fill out the form, and requires only a name, company name, email address and phone number, total monthly revenue, and amount requested.
Tiger Funding’s MCA is a useful lending option for small businesses that don’t want the hassle of filling out lots of paperwork or waiting more than a couple of days for a cash advance. Although you won’t know your factor rate and repayment terms until the end of the application process, Tiger is very upfront about what is required: put simply, if your business has been operating for 6 months and meets the minimum revenue requirements of $10,000 per month, you shouldn’t have too much trouble securing an MCA.
9 East Loockerman St.
Dover, DE 19901