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.
  

  $10,000

  Min. Amount

  $10,000,000

  Max. Amount

  Details

  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:

  • E-commerce
  • 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.

  Pros

  • Funds up to $10 million
  • Low advance fee of 6% to 12.5%
  • No credit check
  • Only requires six months in business

  Cons

  • Only incorporated online businesses can qualify
  • Hard to reach customer service
  • Daily repayments