The Optimum Solution:
FAQ - Frequently Asked Questions: Listed below are frequently asked questions dealing with
cash advance services. If you have a question that is not listed below, please Contact Us:
How can a Merchant cash advance program help fund my business needs?
If your business needs cash right now, there's no better way to make it happen. With a Merchant cash advance you can get the cash you need, when you need it and it is a lot easier and faster to obtain than a traditional bank loan.
How soon can I get the money?
The average time from receipt of contract to funding is usually 3 - 5 business days.
How long does it take to be approved?
Same day approval is possible if all the required documents are in order upon submission.
Is this considered a business loan?
Funds received through a business cash advance is not a loan, it is a cash advance paid to you based on your future Visa and MasterCard (V/MC) merchant account sales. Simply put, you agree to sell us a fixed dollar amount of those future sales at a discount.
If this is not a loan do I still pay interest and finance charges?
You do not pay interest or finance charges as you would with a traditional loan. Through an automated process, we collect a small, previously agreed upon percentage from your daily V/MC credit card sales and only after the sales are made.
How does cash advance differ from traditional bank loans?
For one thing, unlike traditional bank loans, our NO means YES! Rather than using personal credit, personal collateral or personal guarantor to get a small business loan, the owner can sell their future V/MC receivables at a discounted price and receive a "cash advance". This is pretty much similar to "factoring", except in this case your future credit card receivables are factored rather than the business-to-business invoices.
Basic Requirements |
Bank Loan |
Cash Advance |
Time in Business |
2 years |
2 - 4 mos. |
Credit Rating |
A - C |
A - D |
Collateral/ Asset Risk |
Yes |
No |
Tax Returns |
Yes |
No |
Financial Statements |
Yes |
No |
Positive Asset to Debt Ratio |
Yes |
No |
Interest/Finance Charge |
Yes |
No |
Fixed Monthly Expense |
Yes |
No |
Report to Credit Agencies |
Yes |
No |
Late Payment Penalty |
Yes |
No |
How does the program work?
Cash advances are a revolutionary new way to finance your business operations. The most important thing to remember is that it's not a bank loan; so there is none of the traditional bank hassles, and most of all, no more "NO". Cash advance transactions are based upon your future V/MC credit card sales, from which we take a small previously agreed upon percentage of those sales monthly.
How do I know if I qualify?
You can qualify for a cash advance on future credit card sales if you:
- Process over $5,000 per month (Visa/MC sales volume).
- Are current with your rent/mortgage payments.
- Have at least 6 months left on your current commercial lease.
- Have not filed for bankruptcy over the past year.
- Your unresolved business liens don't exceed 200K.
Why do you have to review my personal credit?
To assess risk, we use a business-friendly scoring model that blends your personal credit score with general economic, business and guarantor information.
What can I use the money for?
Anything you want. Most of our customers use the money to expand or support their business needs however you can use the cash for an emergency or personal reasons.
What kind of discount do I get if I pay early?
Since this is not a loan, there is no monthly payment schedule. This is an advance on your future V/MC credit card sales. We get paid only when you get paid; so there is no discount for early repayment.
Do I need to change credit card processors?
Since your cash advance is repaid out of your future V/MC sales, you must use one of our affiliated processing companies. If you are not using one of our processors, there are no additional expenses to cross over because we guarantee to meet-or-beat the transaction rate you're currently paying.
Why do you need my processing statements?
Your processing statements are a true reflection of your actual V/MC sales volume and will help us assess how much of a cash advance you qualify for.
How often are payments deducted?
Once a day we collect a small percentage of your daily credit card sales.
What qualifies as proof of ownership?
Proofs of ownership includes: Articles of incorporation, board-meeting minutes, corporate tax returns or a business license showing the guarantor's name as an owner.
What do you mean by "gross volume?"
Gross volume refers to your total receipts from all sources, including cash, credit cards, debit cards and checks.
Will I get a monthly statement?
No, Instead of a monthly statement being mailed to you, you simply view your daily and monthly statements online by logging into a private and secure area of our website.
Whom do I call with questions about my account?
You can call your local sales office @ 800-395-6889 or call the Customer Care number provided by your agent.
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