Merchant Cash Advances in Hendersonville, TN for Dental Offices and Landscapers With Card Sales

Both products trade a sum today for a share of future revenue, and the difference is which revenue. A merchant cash advance is collected from card sales, either as a split of each day’s card settlements or as a fixed debit sized to them. Revenue-based financing takes a percentage of total monthly revenue, card and non-card alike, and the agreement states what it is and how the percentage is measured.

For a home builder the comparison is short. A builder paid by draw, check and transfer, with few card payments, gives a card-sales advance little to collect from, and a provider would fall back on fixed bank debits. Revenue-based financing tracks deposits instead, so a slow month takes less and a month with two closings takes more.

Sumner County, TN has a sizable builder trade: County Business Patterns lists 102 residential building construction establishments with paid employees there for 2023 (NAICS 2361). For builders waiting on draws, the working capital page covers the other option.

A merchant cash advance is not a loan. The provider buys a stated amount of the contractor’s future card receipts for a lower price paid today, and the contractor agrees to deliver those receipts as they come in. There is no annual rate, no fixed end date and no installment schedule in the usual sense.

• The purchase price: the cash the contractor receives.
• The purchased amount: the total of future receipts the provider is buying, set by the factor.
• The specified percentage: the holdback, the share of each day’s card sales delivered to the provider.
• Reconciliation: whether the daily amount can be adjusted when card sales fall, and how to ask for it.
• Owner commitments: an agreement can include a personal guarantee of the owner’s performance under the contract.

For an HVAC company with card-paying homeowners on service calls, the holdback comes out of those settlements. Twenty-three plumbing, heating and air-conditioning contractors with employees were based at a ZIP 37075 address in 2023 (ZIP Code Business Patterns).

The holdback rate is the percentage of daily card sales that goes to the provider until the purchased amount is collected. A higher holdback collects the total sooner; a lower one stretches it out. Either way the dollar cost stays the same, because the factor fixed it at signing.

Illustration only, invented figures: a physician office takes about $1,500 a day in card payments for copays, deductibles and self-pay visits. At a 12% holdback, $180 of that goes to the provider each day. Insurance payments that arrive by transfer are outside a card-split holdback, but an agreement collected by fixed bank debit draws on the whole account, insurer deposits included.

A dental office with more patient-paid treatment has more card volume to sell; a landscaper paid by card on residential jobs has strong weeks and thin ones, and a percentage holdback moves with them where a fixed daily debit does not.

The factor is the multiplier on the advance. Multiply the advance by the factor to get the purchased amount, then subtract the advance to get the cost.

Illustration only, invented figures: an insurance agency takes a $30,000 advance at a factor of 1.32. Multiplied out, $30,000 x 1.32 comes to $39,600 of receipts sold, and the $9,600 difference is the price of the advance. That cost is the same whether the receipts come in over six months or twelve, so a factor cannot be read as an annual rate: the shorter the collection, the higher the cost for each month the money was in use.

An agency paid mainly in carrier commissions by transfer has little card volume, so a provider would size a fixed debit instead. Agencies here are small offices: 72 of the 90 insurance agencies and brokerages with employees in Sumner County, TN had fewer than five people on staff in 2023, or 80.0% (County Business Patterns, NAICS 524210).

Interest on a credit line runs on the drawn balance for the days it stays drawn, which means an early paydown cuts what the line costs. A merchant cash advance has its cost fixed by the factor, and early delivery lowers it only if the agreement offers an early-payoff discount.

Illustration only, invented figures. The draw costs $3,875.44 less than the advance here, even with the fee. The advance answers a different problem: the provider can look mainly at card volume, so an HVAC contractor without the credit history or collateral a line calls for can still have an offer made. Draw periods, renewals and line fees are set out on the line of credit page.

The steps for a contractor, start to finish:

1. Phone Quillview Loans, or fill in the request form with a name, contact details, the company and three ranges: years in business, yearly revenue and the amount wanted.
2. On the follow-up call, describe the card volume and what the money is for; Quillview Loans then passes the request on.
3. Before it makes an offer, a provider can look through the business's card processing statements and bank statements from recent months.
4. The offer states the advance, the factor, the holdback or daily debit and the reconciliation terms.
5. After signing, the cash arrives and collection starts from card settlements or the bank account until the purchased amount is in.

Illustration only, invented figures: a $25,000 advance at a factor of 1.28 has a purchased amount of $32,000 and a cost of $7,000. Suppose card sales average $2,000 a business day and the holdback is 10%: the provider receives $200 a day, and 160 business days pass before the full $32,000 is delivered. The calculator on this page runs the same arithmetic from an advance amount, a factor, a holdback percentage and average daily card sales, returning the total remitted, the cost of the advance and the estimated time to remit.