Business Funding

Business Funding: Merchant Cash Advance, Loans and Receivables Factoring

The bank is a great place to get funding, but not a solution for every business capital need.

Many times we see strong, growing businesses who could rapidly expand if they had the capital, but banks and traditional lending institutions won’t lend to them due to them as they still consider the business “too new” to loan to.

Sometimes a funding need arises “out of nowhere” and a business does not have the time to go through a traditional bank underwriting process.  Emergency repairs, unexpected opportunities to acquire inventory or buy out a competitor, or even an unexpected tax or workers comp bill.

Or, maybe it’s a relatively small amount needed to “get over the hump” due to a setback – a slow season, losses due to bad weather, or your herd of llamas escaped (yes, we’ve seen it all).

Some businesses will even take out funding toward the end of the year to purchase equipment to offset tax liabilities.

And occasionally we see a business with an existing advance from other companies who can save money and / or extend their terms by consolidating their existing balances with us.

At Merchant Solutions LLC, we offer a variety of business funding instruments to meet your business needs. Our funding programs all offer higher approval rates and reduced requirements than bank loans.  For many businesses, we can present multiple funding options with just one application.  And applications is simple – in most cases all we need is a 1 page app, and 4 months of bank and processing statements to get you a decision in one business day!

Merchant Cash Advance
Merchant Cash Advances work like a loan – you get funded now and repay the balance over time, plus a cost of funds.  But what is actually happening is it’s a purchase of your future credit card receivables at a discount.  In order to qualify, a business must accept payment via credit or debit card.  There are several advantages to a merchant cash advance compared to a traditional loan:

Accepts credit/debit card as a form of payment
Minimum 9 months in business
Minimum annual gross sales of $100K
Funding from $5K to $500,000
Minimum 550 FICO score

Fast decisions – from app to funding typically 2-3 business days.
Balances do not appear on credit reports
Easy repayment – repayment is a set percentage of your daily credit card batch, not a fixed amount.  Repayment therefore naturally aligns with business volumes.
Cost of funds may be tax deductible
No personal guarantee required

Business Loans
Our business loan products are designed to provide funding to businesses who don’t accept credit cards or enough credit cards to qualify for a merchant cash advance.  Our loans are repaid via a set debit amount to the business bank account each business day.

Minimum 9 months in business
Minimum annual gross sales of $100K
Funding from $10K to $1M
Minimum 600 FICO score

Longer repayment terms than merchant cash advance
Lower cost of funds
Greater funding amounts

Receivable Factoring
What’s old is new again.  Receivables factoring allows businesses that issue invoices with net repayment terms to get paid NOW instead of waiting to collect payment.  Perfect for manufacturers, wholesalers, service providers and other business that issues invoices with net payment terms looking to accelerate their receivables.

Minimum 4 months in business
Minimum annual gross sales of $100K
Funding from $10K to $20M
Minimum 600 FICO score

• VERY low cost to fund
Fast: New clients can be established in 24-48 hours, repeat transactions can be funded in less than 24 hours
You select which invoices you want funded
Fund invoices on a one at a time, intermittent or repeat basis
Can co-exist with other funding arrangements

If you are interested in learning more about how Merchant Solutions LLC can help you secure the funding your business needs, please call at 866.326.3480, or fill out the below form and an agent will be back to you same or next business day.

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