We represent Funding Sources who offer Merchant Cash Advance products that are lump sums of working capital advanced to a Merchant in exchange for a predetermined amount of the Merchant’s future credit card sales.
A viable alternative to traditional financing, Merchant Cash Advance (MCA) offers flexibility and options to more businesses. To make sure this is the right fit for our client's needs, The Funding Source will first establish that you:
1. Have owned the business for more than one year
2. Process a minimum of $2,500 in monthly Visa/Mastercard Transactions
Upon approval, the process is simple. The business sells a portion of their future credit card sales, receiving a lump sum of working capital. Then a fixed percentage of their daily credit card receipts is automatically retrieved (through the processor) until the obligation is complete — typically within one year.
Frequently Asked Questions
What makes MCA the smart funding choice for my customers?
The Funding Source is offering a revolutionary funding program, helping our clients to better manage their cash flow needs with a more responsive alternative to traditional bank lending. We provide quicker, easier service, with more approvals than most banks can offer.
How does it work?
The Funding Source purchases a pre-determined amount of a business’ future credit card transactions. The business receives an immediate lump sum of working capital. A predetermined percentage of their future Visa and MasterCard credit card receivables is automatically collected until the obligation is satisfied. Our clients get working capital fast, and then the Funding Source gets paid when they get paid — a convenient way for them to better manage their cash flow. And since the processor automatically retrieves this predetermined percentage of credit card receivables, the business will never have any late fees, or a pre-set repayment term.
What benefits does this type of funding offer over other choices?
A key benefit is that this is not a bank loan. So there are no loan payment books, no late fees, and no interest rates. Best of all, our client will only deal with people that recognize the value of their business. The processing time and approval process is also much easier and quicker than you’ll find with many traditional funding options — typically completed within 10 business days. The Funding Source can often tell our clients "yes" when every other possibility says "no."
Who generally qualifies for this kind of funding?
We represent Funding Sources that specializes in funding under served, but credit-worthy small to mid-sized businesses. They have funded many SIC codes and for a wide range of FICO scores. They have also successfully funded many of the premiere franchise concepts, and helped many other businesses commonly rejected by financial/lending institutions.
How soon can merchants get the money?
This all depends on the merchant. If the requested information is provided promptly, The Funding Source is usually able to provide funding within 10 business days. If our customer is already using one of the approved credit card processors, it can take as little as 72 hours.
What can merchants use the money for?
Essentially, they can use the money for anything their business needs. Unlike other options, we encourage each business to use the money to their greatest advantage. Because this is not a traditional loan product, the funding can be used to purchase or lease refurbished equipment. Many businesses will use the money to renovate or make physical improvements to their establishments, many will buy additional inventory, and many use the money to take advantage of a timely opportunity. We let the businesses decide how they are best served.
Will merchants need to change credit card processors?
Since the processor is what enables us to automatically retrieve the payments for the funding, our customers may need to change processors to one that has an established relationship with the Funding Source. Their affiliated credit card processors guarantee to meet the transaction rate for your clients' current processing needs.
How often does the Funding Source collect payments?
Payments to the Funding Sources are electronically retrieved on a daily basis. The payments are automatically collected from each day’s Visa/MasterCard receipts during a "batch" processing.
With their original obligation to Funding Source's satisfied, can merchants apply to receive additional funding?
Certainly. In fact, since it is so easy to do and so beneficial to their business efforts, 3 out of 4 eligible customers return to take advantage of additional funding opportunities.