How It Works
Frequently Asked Questions
The
criteria for qualification are very simple: we want to verify that you
have been in business for at least one year, that you have positive
trade references, and, that if you lease space the lease has at least
one year of remaining term. We also want to verify that you are
current on your rent or mortgage. We also need to see a report of your
past four months of credit card receipts.
We can generally approve funding within 48 hours of the application.
We generally wire the money within 24 hours of approval.
Our
approach to funding is completely different from a bank loan. First,
we are not lending money but instead we purchase future credit receipts
from you. Essentially you are selling an agreed amount of your future
Visa and MasterCard sales. There is no loan to pay off, no checks to
write, and no late fees. Second, most bank loans require personal
guarantees (so all of your personal assets are at risk), audited tax
returns, and extensive additional documentation. We don’t require any
of these. A bank loan also will involve significant upfront fees such
as points, legal fees, filing fees, and other costs. There are no fees
of any kind associated with our funding. Third, most banks will be
wary of funding a business that has only operated for one or two years
or even more. We only require that the applicant has been operating
for one year.
Unlike
a bank, we do not charge a set rate of interest. Rather, depending on
the facts of your application, we determine how much of your future
sales we are purchasing to cover the funds advanced and a return for
us. We take the risk that your business will continue to generate
sufficient sales over a period of time for us to collect the amount of
sales we have purchased.
Your
credit card processor will deduct an agreed percentage each month from
your Visa and MasterCard sales. We show you upfront what percentage is
deducted until we are paid the amount of future sales agreed to.
Typically, based on your credit card sales history, we try to set up a
program in which our purchase of credit card sales will be completed in
six to seven months. The actual time could be sooner or later than
this depending on the volume of your sales. You retain 100% of sales
in the form of checks, cash, and credit cards other than Visa and
MasterCard.
The
amount of funding we will advance is determined by an average of your
monthly credit card sales. The funding we provide may be as little as
$5,000 or as much as $175,000. In addition, if a business has multiple
locations, the amounts above can apply to separate locations.
You
will have to change if you are not currently processing with one of our
processors who are set up to work with our funding program. However,
we generally find that we are able to reduce your processing costs and
give you significant savings as an added benefit. You will not have to
change any processing equipment as this can be reprogrammed in a short
phone call.
We provide our merchants with a monthly report showing how much has been deducted each month and the balance that is due.
The
answer is you can use the money in any way you desire within your
business. Our merchants typically use funds for purchasing inventory,
capital improvements and expansion, payroll, purchasing advertising at
a discount, paying off debt, and many other related uses.
Our history shows that our approval rates run over 90%.
Our
niche in the market is the small to medium businesses that often falls
under the radar of most institutional lenders. The reason we can take
the risk of funding a smaller business that banks will refuse is
because we are focused on the reliability of your future sales and try
to match our funding to a reasonable expectation of the continued
success of your business.