Tight on cash? We have a solution!
Merchant funding, also known as business cash advance or merchant cash advance is a fast and simple way of obtaining working capital for your business. This type of financial tool is typically not viewed as a loan. You are selling your future credit card receivables at a discount for a set dollar amount. So as your customers pay with credit cards, there will be a small percentage of each transaction deducted to pay down the advance until the balance of the advance is paid off. Unlike a traditional business loan you would get from the bank, the payments made on the merchant funding are daily. Monday through Friday there will be an automatic payment deducted, again based on a set percentage of what your credit card transactions were for the day. The beauty of this program is within the repayment plan; a set portion of your transactions will be used to pay down the merchant cash advance. If you had a low day of transactions, it will only be a percentage of that amount. Versus, if you had a set payment once a month like a normal business loan from a bank they don’t care if you had a slow month; they still expect the set payment that is due every month until the loan is satisfied.
What are the requirements for merchant funding?
There are very limited guidelines for this financing product, but qualifying for this program is very simple. Your business must accept credit cards as a form of payment since we would only be purchasing your future credit card receivables. However, if your business does not accept credit cards or does very little in credit card transactions, we still offer working capital loans that are based off your total gross deposits. But since we’re talking about merchant funding, we’ll go over those requirements only. When applying you’ll need to supply some basic information: Our simple application and four months of your most recent merchant statements. Keep in mind, if you are a seasonal business it might be in your best interest to supply the last twelve months of merchant statements so it’ll reflect your entire work year of gross income. You want to paint the best picture for our underwriters to get you the best and highest approval. You wont have to worry about this, when you speak to on of our advisors, they’ll guide you the whole way to make sure you get the best decision from our underwriters. By the time you submit your package to your advisor, you should have a decision within 24 to 48 hours. From there you can make a decision if you want to proceed with the funding. If you choose to move forward and sign your documents, you can expect the funds to be wired in your account as soon as three business days.
Do you need good credit for merchant funding?
No, the most appealing part to this financial product is the fact that you do not need good credit to be approved. Remember, we are buying your future credit card receivables at a discounted rate.
Will I need to change my processing company?
Not all the time, depending on who your processor is we can sometimes use the same processor. If we have to change processors, our rates are always discounted and passed on to the customer for additional savings. If you decide you do not want to change processing companies, you can always apply for our working capital loan, which won’t require you to change processors.
If you’re interested in hearing more about our business financing programs, please feel free to call First Capital Business Finance 888-565-6692 and one of our loan experts will be happy to answer any of your questions.