American Microloan Small Business Loan Review
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Since 2001, American Microloan, LLC (AML) has served as one of the country's leading small business loan providers, making it possible for business owners to meet their small business finance goals through their affordable merchant cash advance program. They offer business owners with an affordable alternative to the traditional loans obtained through a commercial finance company or retail banks.
Understanding Your Loan Options
American Microloan offers cash advances and quick loans to merchants in the form of short-term working capital in exchange for a percentage of their future Visa/Mastercard receipts. Since this a loan being amortized by irregular daily payments, no one can forecast the exact amount of the interest to be paid over the life of the loan. The following information about the CCRF products assumes an exactly consistent average monthly balance for the length of the loan and that daily sales will also be exactly as predicted every month.
There are two CCRF (credit card receivable financing) products, regular rate and lower rate: The Regular Rate Program typically costs $1,200 per $10,000 borrowed over six months. As a rule of thumb, the shorter the term, the lower the interest amount. The Lower Rate Program typically costs $600 to $900 per $10,000 borrowed over six months. The Lower Rate Program is offered only in the following states: Michigan, New York, Ohio, Montana, and Texas.
Speed of Implementation and Loan Duration
CCRF is a short-term working capital advance loan designed for Visa/MC merchants. The cash advance or loan amount is based on the merchant's previous 6-month average (12 months if the business is seasonal) monthly sales volume on Visa/MC. The typical merchant advance loan amount is 70% – 100% of the monthly average, with the typical term at 6 months. To be approved the borrower just submits the Visa/MC receipts for the above-named period, so the processing is simple. The entire timeline of application considerations is described in great detail on the application’s first page. Applications can be submitted totally online, with uploaded documents. The list of documents is extensive for a short-term loan and belies their description as quick. Read more about how to apply for a small business loan.
Fine Print and Final Thoughts
The cash advance is the specialty at American Microloan, which provides small business financing and unsecured term loans and small business loans via short-term working capital financing to Visa and MasterCard credit card merchant account holders at a reasonable rate. To their credit, American Microloan does disclose full financing information right on their website in some serious detail. Learn more about micro business loans.
Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.