Small Business Loans – FAQ

What is a merchant cash advance and how fast can you get money? How does a merchant cash advance work? Does Merchant Capital Store fund the money? Does Merchant Capital Store provide the merchant cash advance? What role does Merchant Capital Store play in the funding? Is there much demand for small business working capital? Why is it so hard for a small business to get a loan? What qualifies the merchant for a merchant cash advance? Are there any businesses that do not qualify for a merchant cash advance? How do you determine funding based on the processing volume amount? How does the merchant repay the merchant cash advance? What is the estimated period for repayment of the merchant cash advance?


What is a merchant cash advance and how fast can you get money?

  1. Merchant cash advance is working capital that helps small business merchants grow without borrowing money.
  2. Pre-approval takes between 24 to 48 hours and funding can occur within 5 business days.
  3. Once approved, Merchant Capital Store opens their merchant account within 72 hours.
  4. The application is simple and set-up fees are minimal with no deposits or collateral to put up.
  5. The merchant cash advance is automatically retrieved from your credit card processing volume.
  6. Merchant cash advance is geared to enhance cash flow, not constrict it. It helps capitalize the business.
  7. A percentage of a merchant’s gross revenue is retrieved at approximately 24 to 33% of their daily gross sales.
  8. Additional access to cash is always available and we can fund multiple locations at the same time.
  9. Our renewal department calls the merchant when 80% of the merchant cash advance has been paid back.
  10.  The Merchant cash advance is deposited into the merchant’s checking account 3 days after the first batch.

How does a merchant cash advance work?

  1. The investment group buys a fixed amount of the merchant’s future Visa and MasterCard sales volume.
  2. Merchant Capital Store’s Merchant cash advance program is backed by investors, risk management groups and financial institutions.
  3. Merchant Capital Store provides a fast, accurate and proven method for businesses to gain access to working capital.
  4. This is not a loan. It’s an advance on future processing receivables to be used for capitalizing the business.
  5. Merchant cash advance is re-paid by taking a small fixed percentage from the merchant’s future card volume.
  6. Within days, the merchant receives a lump sum payment wire-transferred directly into their bank account.
  7. The Merchant cash advance is paid back within 7 to 12 months interest-free with only a fixed fee.
  8. Merchant Capital Store underwrites the Visa and MasterCard accounts for transaction processing within five days.
  9. No, Merchant Capital Store underwrites the application for the investment group and provides the credit card processing services.
  10. The program must never be considered, or spoken of, in terms of a loan because it is an investment.
  11. The venture capital group invests in small businesses looking for short-term capitalization, not long-term loans.
  12. The Investors are relying on future credit card receivables and advance cash for working capital purposes.
  13. We avoid using words and phrases such as loan, interest rate, payment term, APR, principal or any other traditional lending institution language that would imply that merchant cash advance is a loan. It is not a loan.
  14. The merchant pays a discount fee split-funded by the processor. Merchant Capital Store strictly underwrites the investment.
  15. After application is approved, an agreement is forwarded and funding can occur within 5 business days.
  16. Merchant Capital Store underwrites the merchant account and charges a discount rate for the transaction processing.
  17. Merchant Capital Store needs 3 months of bank and credit card statements, a copy of a Landlord Lease, and 2 tax returns.

Does Merchant Capital Store fund the money?

  1. No, Merchant Capital Store underwrites the application for the investment group and provides the credit card processing services.
  2. The program must never be considered, or spoken of, in terms of a loan because it is an investment.
  3. The venture capital group invests in small businesses looking for short-term capitalization, not long-term loans.
  4. The Investors are relying on future credit card receivables and advance cash for working capital purposes.
  5. We avoid using words and phrases such as loan, interest rate, payment term, APR, principal or any other traditional lending institution language that would imply that merchant cash advance is a loan. It is not a loan.
  6. The merchant pays a discount fee split-funded by the processor. Merchant Capital Store strictly underwrites the investment.
  7. After application is approved, an agreement is forwarded and funding can occur within 5 business days.
  8. Merchant Capital Store underwrites the merchant account and charges a discount rate for the transaction processing.
  9. Merchant Capital Store needs 3 months of bank and credit card statements, a copy of a Landlord Lease, and 2 tax returns.
  10. Monthly credit card volume may qualify the merchant for $5,000.00 to $750,000.00 in funding, not lending.

Does Merchant Capital Store provide the merchant cash advance?

  1. No. Merchant Capital Store underwrites the credit card processing account and services the merchant.
  2. A Risk Management Group approves the merchant for transaction processing.
  3. The Investment Group funds the project assumes the risk on all working capital provided to the merchant.
  4. The risk management group represents the investment group that funds the project.
  5. Merchant Capital Store has an agreement with the Risk Management Group and The Investment Group.
  6. Risk Managers asses the risk, investors provide the funds, and Merchant Capital Store underwrites the processing.
  7. Merchant Capital Store downloads the split-fund software into the terminal and a processor services the merchant.
  8. The processor provides 24 hour terminal support and regular hours help desks for the merchant.
  9. Risk managers provide front and back end support for Merchant Capital Store, Inc.
  10. Merchant Capital Store is not a middle-man between Risk Management Group and The Investment Group.

What role does Merchant Capital Store play in the funding?

  1. Merchant Capital Store is a Merchant Service Provider for credit card processing services nationwide.
  2. Merchant Capital Store underwrites merchant agreements within the United States for credit card processing.
  3. Merchant Capital Store processes credit card transactions and investment groups assume all liability.
  4. The Risk Management Group assesses the risk and monitors fraudulent transactions for the investors.
  5. The Investment Group, through its investment pool, provides the merchant cash advance to the merchant.
  6. If the merchant defaults on the Merchant cash advance, Merchant Capital Store discontinues the processing.
  7. The Investment Group loses the money and pursues the merchant through legal channels.
  8. Unlike our competitors, there are no legal hoops to jump through, since the ownership has guaranteed the note.
  9. The merchant cannot change processors during the payback period. They would be in violation.

Is there much demand for small business working capital?

  1. According to the Small Business Administration, over six million small businesses are financially challenged.
  2. Inadequate or ill-timed financing is a major reason for small business failure.
  3. Demand for Merchant cash advance is fairly constant because businesses always need money.
  4. Seasonal businesses are always looking for cash because lenders are reluctant to lend on a cyclical business.
  5. Approximately 92% of business owners are refused loans from traditional lending. Most seek alternative means.

Why is it so hard for a small business to get a loan?

  1. No collateral is the number one reason why they are refused business loans.
  2. The business or its ownership has less than prefect credit and co-signers are hard to find.
  3. Most small businesses do no fit the lending models of major banks and risk paying high interest rates.
  4. Insufficient time in business, low volumes, and risky merchants pose a high probability for default.
  5. Large debt ratios, high overhead, employee turnover, and slow payments are major turndowns.

What qualifies the merchant for a merchant cash advance?

  1. You must process an average of at least $5,000 per month in Visa & MasterCard volume.
  2. The business must be in good standing and operating for at least 12 months, unless otherwise approved.
  3. One exception is a well established existing location that is purchased by a credit worthy individual.
  4. An existing client opening an additional location can be approved fairly easily.
  5. There are special programs available for new businesses that meet conditional underwriting criterion.
  6. They must provide three months of Visa/MasterCard statements and Bank Deposits showing proof of income.
  7. Although we prefer sound established businesses, all businesses are strongly considered.
  8. If in doubt, just ask. Do not pre-judge your situation and let us take a good look at the business.

Are there any businesses that do not qualify for a merchant cash advance?

  1. Yes. There’s a complete list that risk managers provide upon request. Listed are the most obvious.
  2. Most businesses whose transactions are internet-based have a high failure rate and are not considered.
  3. All adult entertainment related businesses do not meet Visa/MasterCard and Investor profiles.
  4. Home-based operations are considered short-lived and high risk. Their volumes are usually low and seasonal.
  5. Some home-based businesses can be funded, but very unlikely and at a very low amount.
  6. We cannot fund a merchant on the Visa/MasterCard “Terminated Merchant File” listed by a bank or processor.
  7. Every merchant is carefully looked at, with risk being the major consideration for approval.

How do you determine funding based on the processing volume amount?

  1. Take your 3 most recent statements, average the volume and multiply by 6 months.
  2. This helps determine the merchant’s estimated future Visa and MasterCard sales volume.
  3. We then determine a Specified Purchase of that estimated future sales volume.
  4. The Specified Purchase is the percentage of the merchant’s V/MC volume that goes toward repayment.
  5. A discount is then taken from the volume resulting in a Specified Percentage of the daily Visa/MC batch.
  6. The net amount, which is called the Funded Amount, is wire-transferred into the merchant’s bank account.

How does the merchant repay the merchant cash advance?

  1. There are no fixed payments to mail every month. The payment varies with daily credit card volume.
  2. No bill is ever sent, only a statement showing the merchant’s balance and credit card processing volume.
  3. The merchant is not tied to a fixed period because repayment may take a little longer, depending on sales.
  4. Merchant Capital Store “split-funds” the Merchant cash advance every time a credit card is swiped through the terminal.
  5. There is no collateral required, attachment on personal property, or extraneous requirements to fund the cash.
  6. The merchant can come back for quick emergency money anytime after repayment; within a few days.
  7. We will lend on multiple locations as many times as you want, without lengthy credit checks or paybacks.
  8. Merchants do not need excellent credit scores and past bankruptcies are strongly considered.
  9. The merchant can use the money for consolidating debt if he wants; so long as it helps the business grow.
  10. Processing volume can be as low as $5,000.00 per month average over the last 3 months.

What is the estimated period for repayment of the merchant cash advance?

  1. The estimated timeframe for repayment is the same as the projection period.
  2. For a 6 month program, the target repayment timeframe is 6, 9, 12 and 18 months.

Call For More Information: 1 (888) 249-0605

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