Frequently Asked Questions
How it works
A merchant cash advance is an advance based on your future receivables. You pay a flat up-front fee, with no origination fee or interest rate, and you repay the advance based on a percentage of your future receivables.
For example, you could get a merchant cash advance for $100,000 for a flat fee of $9,000 with an agreed repayment percentage of 10%. Clearbanc will disburse $100,000 and then collect 10% of your receivables until you’ve paid Clearbanc $109,000.
A Clearbanc marketing card is a Mastercard available to fund your marketing spend. You can spend it on digital ad spend or to pay other items in your marketing budget.
We currently only provide financing for eCommerce and Consumer SaaS (software as a service) companies. If your business is not within these categories, we do not currently have a program in place to support you, but check back soon as we expand.
Minimum eligibility criteria includes:
- average monthly revenue of at least $10,000
- at least 6 months of consistent revenue history
- business must be incorporated (ie. corporations or limited liability companies)
Yes. You may receive an additional advance if you qualify for more capital.
You may qualify for more capital if:
- You did not choose the max amount of capital on the first advance
- Your company revenue has grown significantly since the last advance
- You have a new source of income that significantly increases your revenue
- You are 80%+ repaid on your previous advance
All offers are subject to due diligence.
We determine eligibility by analyzing your actual business metrics, so applying for an advance with Clearbanc should NOT affect your credit score.
The entire process (application, offer, negotiation, approval, sending funds) can be completed in as little as one to two business days. Large advances and applications requiring special considerations or analysis may take longer.
There is no fee to apply for an advance. There is a fixed fee associated with each advance which is determined based on your business data. It has no periodic nor compounding interest. You will know exactly how much you are paying before you accept the offer and that fee will never change throughout the repayment process.
The flat fee is based on the data analyzed by our platform. We take your revenue data, business metrics, and market data into consideration when determining your unique offer and the fee associated with it.
Repayment is made from your future business revenue. A percentage (decided when negotiating your terms) of each transaction is applied towards repaying the advance until it is repaid in full. There is no set repayment date, as we understand your business can fluctuate throughout the year.
The repayment percentage is decided when negotiating the terms of your advance. We typically take 1% to 35% of future revenue to keep a healthy cash flow in your day to day operations. We work with you to determine a rate that will be beneficial for everyone.
The repayment percentage you decide on with your account manager will remain in effect until your advance is repaid in full.
In order to provide you with an offer, we need to verify both your identity and your business. The first step is to connect the accounts you use to run your business - we use this information to analyze your revenue data. To verify your identity, we need your EIN and Articles of Incorporation documents, social security number and government ID.
We use your financial information to determine your eligibility for a Clearbanc Advance. We ask that you link this information to our platform so we can assess your business performance quickly and in an automated manner. The bank account you connect to Clearbanc is also the bank account in which we will deposit your advance via an ACH or EFT deposit.
All information you share with Clearbanc is secured using Military Grade encryption (RSA 4096 and AES 256). We can never at any point see or store your bank/data source login information, nor do we have access to save or change your bank account data. We have securely connected more than 25,000 data sources to be automatically reviewed.
Of course! We may require multiple business partners to go through the verification process and sign.
Once your advance contract has been countersigned, funds should arrive within 24 hours. Sometimes large amounts may take an additional day.
If you have a Clearbanc Marketing Card, it should be available on your dashboard same day.
We will begin to collect the agreed repayment percentage on your ongoing future bookings, until your balance is 0.
If you have a Clearbanc Marketing Card, you will receive an invoice the day after you receive your card.
Your payments history is under the payments tab on your Clearbanc account.
Clearbanc Marketing Card
Your Clearbanc marketing card details are available on your account tab in your Clearbanc dashboard .
If this happens, you will receive an email informing you of the reason the card was declined. Please double check the CVC expiry date and card number on your Clearbanc dashboard to ensure you've entered it correctly. Please note that large transactions may be blocked for fraud prevention. If you need to make a large transaction, please let us know ahead of time so we can ensure it is successful.
Please call us at (855) 813-2818