Merchant Factoring - FAQs
Factoring
FAQs - Merchant Factoring
- How is the amount of funding that a merchant can receive determined?
- How quickly can a business receive funding?
- Is this a loan?
- What happens if credit card volume increases or decreases after we receive funding?
- Will I need to switch my credit card processing?
- What can the funds be used for?
- How easy is it to get approved?
- How I can qualify?
- How do I repay the cash advance?
- Do I have to change my equipment and software?
- Is it going to cost me to apply for financing?
- How complicated is the paperwork?
- What if I need additional funding once my previous advance is paid back in full?
How is the amount of funding that a merchant can receive determined?
The funding amount is determined from the previous six months of processing statements. Those statements are averaged to set a base-line amount for the available funding for the merchant, which is up to 100% of your business's average monthly credit card processing volume.
How quickly can a business receive funding?
A business receives funding 5 days after a signed contract is received.
Is this a loan?
It is important to know that merchant funding is not a bank loan, but rather an advance backed by your business's credit card processing volume history. Because this type of funding is not a loan, there is not a specified fixed period of repayment.. There are no loan payments coupons, no dealing with people who don't understand your business, none of the traditional bank hassles, and most of all... no more "no's." You are not being judged by your past, you are being rewarded for it. We provide cash advances that are based upon your future sales.
What happens if credit card volume increases or decreases after we receive funding?
Since merchant funding is not a loan, and does not have a fixed payment period, a business's processing volume can change without effect to the repayment of the funding.
Will I need to switch my credit card processing?
Since funds are paid by the back-end of your credit card processing, you must be a customer of ours for us to provide funding to you. We can give you a 100% assurance that we can meet or beat your current processing rates, while providing a superior service for your processing needs. In most cases, you will be saving money by switching and get the cash advance you need to grow your business.
What can the funds be used for?
We are not a bank, and as a result, you can use the funds you receive for anything. We strongly recommend that you invest the funds back into your business. A few examples of responsible, cost-effective, uses for funding include: expansion, renovations, partnership buyouts, opening new locations, purchasing increased inventory, and increasing your business's marketing.
How easy is it to get approved?
It is a lot easier and faster than a typical bank loan. We understand the reality and the issues of owning and operating a business. We approve over 97% of the businesses that apply. Were always looking for ways to say yes!
You:
- Have a business that accepts VISA/MasterCard as a form of payment, process a minimum of $10,000 a month, and have been in business at least six (6) months. (Exception – for new restaurants only – funding will be provided for the POS system only).
- Complete an application for a merchant advance and can provide:
- Six months (if business is not seasonal and 12 months if business is seasonal) of recent credit card statements.
- Most recent 2 months of business banking statements
- A voided check for the business banking account
- Copy of recent utility and telephone bill
- Copy of premise lease agreement (if applicable)
- Copy of business owner's driver's license
How do I repay the cash advance?
With each purchase transacted using your merchant account, a small percentage is deducted from the total sale. If you are funded 0-70% of your average proc¬essing volume, repayment is 15% of your daily deposits. If you are funded 70-100% of your average processing volume, repayment is 20% of your daily deposits; this small amount goes to repay your cash advance. Repayment is completely automatic, No monthly bills or headaches! Your cash advance repayment process is convenient, easy-to-understand, completely automatic, and adapts to the variations in your business revenue. Never worry again about meeting your financial commitments because unlike banks our programs adjust to the cash flow of your business.
Do I have to change my equipment and software?
If you are a current Trilogy customer, you need to do nothing. If you are not a current Trilogy customer, most likely we will be able to simply reprogram your existing equipment. If new equipment is necessary, we offer equipment at a low cost. In many cases, we offer a trade-in allowance on your old equipment.
Is it going to cost me to apply for financing?
No, the application is free and there are no up-front fees charged to our customers
How complicated is the paperwork?
The paperwork that you will complete is quite simple and generally takes no more than ten minutes to complete.
What if I need additional funding once my previous advance is paid back in full?
You are already pre-approved! We will just need to review your previous six months of processing statements to determine the amount available for your next merchant advance.