Frequently Asked Questions
How it works
What is a Clearbanc Advance?
A Clearbanc Advance is a merchant cash advance with a flat, fixed fee. There are no periodic interest charges, monthly bills, late fees, penalty fees, or origination fees; no surprises. We analyze your past, present, and future business performance to determine the correct amount of capital to help your business grow.
What do I need to do to qualify for an advance?
The first step is connecting the accounts you use to run your business (airbnb, shopify, etc). We use the data from these platforms to analyze the health of your business. As such, we require at least 6 months of previous data. In order to send funds, we require your business be incorporated - but if you aren't incorporated already, we can help you get set up.
Can I receive more than one advance at a time?
When your advance is 90% paid off, we can start discussions about taking another.
Will applying affect my credit score?
We determine eligibility by analyzing your actual business metrics, so applying for an advance will not affect your credit score.
How long does the whole process take?
The entire process (application, offer, negotiation, approval, sending funds) can be completed in as little as 1 day, but typically, the process takes 3-7 business days from start to finish. Large advances and applications requiring special considerations or analysis may take longer.
What fees are associated with taking an advance?
There is no fee to apply for an advance. There is a fixed fee associated with each advance which has no periodic, 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.
How is my fee rate determined?
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. Fee rates typically get lower and lower as you take subsequent advances and we build a trusting relationship.
How does the repayment percentage affect the advance fee?
Choosing a lower repayment percentage can affect the amount of capital and result in a change in your fee. Some businesses are more comfortable with a lower repayment percentage and higher fee to provide more flexibility in their day to day cash-flow. Our operations team will work with you to find the best fit for your needs.
How do I repay my advance?
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 throuhgout the year.
What is my repayment percentage?
The repayment percentage is decided when negotiating the terms of your advance. We typically never take more than half of your future revenue to keep a healthy cashflow in your day to day operations. We work with you to determine a rate that will be beneficial for everyone.
Can I change the repayment percentage after I receive the advance?
The repayment percentage you decide on with your account manager will remain in effect until your advance is repaid in full.
What information do you need to verify my business?
In order to give you an offer, we only need to connect to the accounts you use to run your business. We use this data to analyze your revenue and give you an offer that will help you grow. Before we are able to finalize an offer and send funds, we need to verify your identity and business details. As part of this identity verification process, we require your personal details including social security number and governement ID. To verify your business, we require your incorporation documents and tax ID numbers.
Why do you need my bank account information?
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 deposit.
How secure is my information?
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.
Are you going to sell my information to third parties?
Absolutely not! Your data is securely used to enhance your experience at Clearbanc and offer us insights on how to build more financial products for the modern day entrepreneur. We strongly believe that it is unethical, and would never sell your information to third parties.
Can I apply for an advance if I have a business partner?
Of course! However we do require that the majority shareholder is the one who enters their personal data and signs our contract. In some cases, we may require multiple business partners to go through the verification process and sign.
Can I apply for a Clearbanc Advance if I'm a vacation rental host but I'm not on Airbnb?
Yes! We work with vacation rental managers who list their properties on many differnt platforms such as VRBO, HomeAway, Flipkey and CanadaStay. Simply tell your Clearbanc account manager about all the platforms you use to list your properties.
How long does it take to receive the funds?
The application, offer, negotiation, and approval process typically takes a few days from start to finish. Once your advance has been approved and you sign the contract, we try to send your funds ASAP. If early enough in the day, we can send them using same-day ACH. Otherwise the ACH transfer should hit your bank account the next business day. Sometimes large amounts may take a little longer.
When do automatic repayments start?
Once the funds have landed in your bank account, we will begin to collect the agreed repayment percentage on your ongoing future bookings, until your balance is 0. If your balance is ever at 0 and we receive any payments from your account, we send the funds back to your linked bank account as quickly as possible.
Can I use my Paypal or Payoneer Account as a linked bank account?
No, you must connect a bank account associated with a traditional banking insitution.
What happens if my future bookings or sales fall through?
At Clearbanc we understand that being an entrepreneur means things don't always go according to plan. If your business experiences a lull, we do not penalize you for this. Please just let us know about your situation before it becomes an issue and we will work together on a repayment plan.
Using your Clearbanc Email for Airbnb login
Why do I need to change my Airbnb login email?
Airbnb does not support 3rd party account connection, so we need you to do this so that we can connect to your account and analyze your bookings throughout the term of your advance. Don't worry, your account will still function exactly the same and you will still receive emails from Airbnb.
Will I still receive my e-mails after I change my airbnb login to my Clearbanc email?
Yes! You will continue to have full access to your account and continue to receive all the same emails and notifications. It just helps us connect to your account and monitor your business performance.
Will Clearbanc change my account settings?
As part of the setup process before sending your funds, we will help you set up your payout routing rules according to the repayment split you agreed to. This will only be approved and authorized with your prior consent. You will keep full control of your account after switching to your personal Clearbanc email.