Frequently Asked Questions
The criteria for qualification are simple. If you have been in business for 6 months, have no open bankruptices, process at least $4,000 each month in credit card sales, and at least one year is remaining on your lease, you are well on your way to approval.
Our underwriting department requires minimal documentation.
One page application 3 most recent credit card statements 3 most recent bank account statements Lease agreement (first and last page) Copy of drivers license
We can generally pre-approve funding within 48 hours of a completed application. Typically we find that final approval can take place in 48-72 hours. Approval is dependent on us recieving all documentation.
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 credit card 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.
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.
We will deduct an agreed percentage from your Visa and MasterCard sales. We deduct those sales on a daily basis until the advance is payed back. You retain 100% of sales in the form of cash and checks.
The amount of funding we will advance is determined by an average of your monthly credit card sales. We can provide between $5,000 and $250,000 per location.
The funding process works through your credit-card terminal so we may need to switch you over to our preferred credit card processor. We work with an outstanding organization that will match or beat your current rates, and will make the transition virtually seamless.
We provide merchants with a monthly report showing how much has been deducted each month and the balance that is due. You can always call in to our customer service who will be able to give you your current balance.
You can use the money in any way you desire within your business. Merchants typically use funds for purchasing inventory, capital improvements and expansion, payroll, purchasing advertising at a discount, and paying off debt.
Our history shows that our approval rates run over 87%.
Our niche is the small to medium sized business that falls under the radar of most institutional lenders. We take the risk of funding the smaller business that banks will refuse because we are focused on the reliability of your future sales. We try to match our funding to the expectation of the continued success of your business.
We typically find that when the advance balance is down to approximately 50% of the original amount, the merchant my request additional funds. The owner of the business can request a renewal by phone, fax, or e-mail. Renewals are usually funded within 24 hours of being requested.