 |
Questions
and
Answers |
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|
What
is
a
Merchant
Cash
Advance
or
credit
card
receivables
financing?
|
| A
merchant
cash
advance,
also
referred
to
as
business
cash
advance,
is
a
convenient
alternative
to
a
traditional
small
business
loan.
It
is
cash
given
up-front
to
businesses
when
they
need
it,
and
is
based
upon
the
cash
flow
from
monthly
credit
card
sales
charges
and
total
business
volume.
Monthly
payments
are
not
made
like
small
business
loans;
instead
small
debits
are
automatically
taken
from
batched
credit
card
sales. |
|
How
long
will
I
have
to
wait
to
find
out
if
the
merchant
cash
advance
has
been
approved?
|
| Approval
is
usually
obtained
within
24
hours
once
required
documents
are
sent
to
underwriting.
|
|
| How
much
can
a
business
qualify
for? |
| Businesses
can
qualify
for
$5,000
to
$500,000
per
location. |
|
How
does
BFS
determine
the
size
of
the
Merchant
Cash
Advance?
|
| The
amount
you
are
approved
for
is
determined
by
the
average
credit
card
volume
over
a
120
day
period.
We
encourage
submission
of
any
documentation
(bank
statements,
sales
tax
receipts)
that
supports
total
sales
volume
in
order
to
be
approved
for
the
highest
amount
possible. |
|
How
does
a
business
repay
the
Merchant
Cash
Advance?
|
| BFS
collects
a
small
percentage
of
each
credit
card
transaction
through
a
preferred
processing
bank. |
|
| |
| What
are
the
requirements
for
a
business
to
qualify? |
 |
Restaurant,
Retail
or
Professional
Service |
|
Accept
credit
cards
as
a
form
of
payment |
|
Provide
processing
statements
for
the
previous
4
months
of
at
least
$5,000
per
month
in
credit
card
sales |
|
Provide
most
recent
business
bank
statement |
|
Acceptable
personal
and
business
credit |
|
Have
no
excessive
tax
liens,
open
judgments
or
bankruptcies |
|
In
good
standing
with
landlord
and
at
least
one
year
remaining
on
your
lease |
|
| |
| What
are
the
other
benefits? |
|
Funding
can
occur
in
as
little
as
5
days |
|
Easy
payback
process |
|
Cash
advance
fee
is
100%
tax
deductible |
|
Fast
funding
for
opportunistic
buys |
|
Improve
cash
flow |
|
Builds
business
credit |
|
Additional
funding
available
before
advance
is
paid
off |
|
No
set
term,
no
monthly
payment
|
|
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