1Merchant cash advances are not loans
A merchant cash advance is a commercial transaction in which Emerald or a funding partner purchases a specified amount of a business's future receivables at a discount. The business receives a lump sum today and delivers the purchased receivables by remitting an agreed percentage of its sales, typically daily, weekly or monthly, until the purchased amount has been delivered. Because it is a purchase and not a loan, there is no interest rate, no fixed term and no fixed payment amount. The cost is expressed as a factor rate: a 1.22 factor rate on a $25,000 advance means the purchased amount is $30,500. Under most agreements, the remittance percentage may be reconciled up or down to match actual sales, and the business is not in default solely because sales decline. Review your agreement for the exact reconciliation and remittance terms.
2Lines of credit and term loans
Business lines of credit and term loans are credit products and are subject to credit approval. They carry an interest rate and may include origination, draw, maintenance or late fees. The annual percentage rate (APR), total repayment amount, payment schedule and any fees will be disclosed to you in writing before you sign, in the form required by applicable state law. These products may be originated by Emerald or by a third-party lender or bank partner, in which case that lender's name and terms will appear on your agreement.
3Figures on this website
Amounts, funding times, repayment schedules, minimum credit scores, time-in-business requirements and similar figures shown on this website, including in the Products section and the Compare table, are typical ranges intended to help you understand which product may fit. They are not offers, minimums or maximums, and they are not guaranteed. Actual terms depend on underwriting of your business, which considers factors such as revenue, deposit consistency, existing obligations, industry, time in business and credit history. "Funded in as little as 24 hours" reflects the fastest typical timeline after a signed agreement and completed verification; many requests take longer.
4The cash advance estimator
The estimator on our home page is an illustration only. It assumes a 1.22 factor rate, an advance equal to one month of card sales capped at $500,000, 21 business days per month and 4.33 weeks per month, and it treats daily, weekly and monthly schedules as collecting the same share of sales. It does not run a credit check, does not submit an application and does not produce an offer. Your actual factor rate, advance amount, remittance percentage and schedule may be higher or lower and will be stated in your agreement.
5Credit inquiries
Submitting an application through our Portal results in a soft inquiry on the personal credit of the business owner or guarantor, which does not affect the owner's credit score. Before funding certain products, particularly lines of credit and term loans, a hard inquiry may be required. A hard inquiry can affect your credit score and will appear on your credit report. We will tell you before a hard inquiry is made. We and our funding partners may also obtain commercial credit reports on the business.
6Personal guaranties and security
Our products are marketed as requiring no collateral, meaning we do not generally require a specific pledge of equipment or real estate. However, most agreements require a personal guaranty of performance from the business owner and grant a security interest in the business's receivables or assets, and a UCC financing statement may be filed. Read your agreement carefully to understand what you are guaranteeing and what is secured.
7How Emerald is compensated
Emerald may fund a request directly, or may act as a broker or referral source that arranges funding from a third-party capital provider. When we arrange funding, we may receive a commission or fee from the provider, which may be built into the cost of your funding. We may also receive compensation from, or pay compensation to, referral partners who introduce clients to us. The identity of the funding provider and any broker compensation will be disclosed where required by state law and will appear in your agreement.
8State commercial financing disclosures
Several states, including California, New York, Utah, Virginia, Georgia, Florida, Connecticut and Kansas, require specific written disclosures for commercial financing, such as the total amount funded, total cost, estimated APR or annualized cost, payment amounts and prepayment terms. If your business is located in one of these states, you will receive the required disclosure before you sign, and we will fund only through providers registered or licensed where required. Nothing on this website is intended to be, or to replace, a state-mandated disclosure.
9Availability
Our products are offered to businesses located in the United States. Not all products are available in every state, to every industry, or to every business, and some states restrict certain products or terms. Requirements such as minimum time in business and minimum revenue may vary by state and product.
10Client stories
Client stories and testimonials on this website are illustrative composites presented to show how our products are commonly used. Names and business names are fictional unless otherwise stated. They do not represent a promise of any particular outcome, and individual results vary.
11No advice
Nothing on this website is legal, tax, accounting or financial advice, and nothing here should be relied on as a recommendation that any product is suitable for your business. Financing decisions carry risk, including the risk that remittances or payments reduce your available cash flow. We encourage you to review any offer with your accountant, attorney or financial advisor before signing.
Questions about these disclosures can be sent to Emerald Finance through our application portal at app.emeraldfinanceus.com.