Low-cost merchant cash advances for online corporations and LLCs.
- Best for businesses in the startup phase that don’t want VC funding.
- Pick something else if you don’t have an eligible type of company.
Product Name Clearbanc merchant cash advance Min. Amount $10,000 Max. Amount $10,000,000 Requirements Eligible online business, average of $10,000 monthly revenue, 6 months of revenue, LLC or corporation.
How much will this advance cost me?
Clearbanc advances come with a flat fee of 6% to 12.5% instead of interest. Your business repays the loan plus a fee with a percentage of your daily sales, which ranges from 1% to 20%. Unlike a business loan, there’s no fixed repayment date — how long it takes to pay off depends on your sales.
How it works
Say your business takes out a $10,000 advance with a 10% fee. That 10% fee brings your total loan cost to $1,000. After you receive the funds, Clearbanc takes a percentage of each future sale until you’ve repaid the full $11,000.
If this takes six months, that would be equivalent to an APR of around 37%. If it takes a year, that would be equivalent to an APR of around 20%.
What do I need to qualify?
You and your business must meet minimum requirements to qualify for an advance from Clearbanc business loan:
- Average monthly revenue of at least $10,000
- At least six months of consistent revenue
- LLC or corporation
- Eligible industry
What information do I need to apply?
You need to provide the following information and documents when you apply for a Clearbanc advance — at a minimum:
- Bank account and routing number
- Basic information about business, like your EIN
- Basic information about all officers and directors
- Articles of incorporation
- State-issued ID
What industries does Clearbanc work with?
Clearbanc only works with the following types of companies:
- SaaS (software as a service)
- Online retailers
- Subscriptions companies
- Mobile apps with in-app purchases
- Marketplace (beta)
Pros and cons
Clearabanc can offer a good way to avoid VC funding when you can’t qualify for a bank loan. But it’s still more expensive than other types of financing.
- Funds up to $10 million
- Low advance fee of 6% to 12.5%
- No credit check
- Only requires six months in business
- Only incorporated online businesses can qualify
- Hard to reach customer service
- Daily repayments