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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. |
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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. |
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| How much can a business qualify for? |
| Businesses can qualify for $5,000 to $500,000 per location. |
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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. |
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How does a business repay the Merchant Cash Advance? |
| BFS collects a small percentage of each credit card transaction through a preferred processing bank. |
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| What are the requirements for a business to qualify? |
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Restaurant, Retail or Professional Service |
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Accept credit cards as a form of payment |
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Provide processing statements for the previous 4 months of at least $5,000 per month in credit card sales |
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Provide most recent business bank statement |
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Acceptable personal and business credit |
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Have no excessive tax liens, open judgments or bankruptcies |
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In good standing with landlord and at least one year remaining on your lease |
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| What are the other benefits? |
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Funding can occur in as little as 5 days |
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Easy payback process |
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Cash advance fee is 100% tax deductible |
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Fast funding for opportunistic buys |
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Improve cash flow |
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Builds business credit |
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Additional funding available before advance is paid off |
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No set term, no monthly payment |
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