New Merchant Financing
We have a unique cash advance financing vehicles available for merchant businesses that plan for $30,000 per month of credit card revenues by the second month of operations. These programs for would apply for merchants changing owners as well as for new merchants.
Here is a summary of our two New Merchant Business Cash Advance programs.
1) Merchant changing owners
If you have owned a merchant for fewer than four (4) months that you purchased or plan to purchase, then this program may provide you with working capital to stimulate growth. If you have already owned the merchant for more than four (4) months but less than a year, then it would be considered a Standard Business Cash Advance, with fewer paperwork requirements. The "Merchant Changing Owners" program is quite similar to a standard busienss cash advance deal, with a few extra requirements. Approval is typically 24-48 hours. If a merchant is purchased by a new owner, but keeps same DBA and maintains continuous operations, we need:- Biography of the new owner
- 2-4 of the old owners' monthly CC statements - if Monthly Visa/MasterCard volume is $10,000 or more (alternatively, we require 60 days of processing for new owner if Visa/MasterCard volume is $7,500 to $10,000)
- Copy of Voided Check
- Copy of Driver's License for each signature on the application (enlarged copy will help clarity and expedite the process)
- Proof of ownership (a document that shows the business owner name(s) and percentage(s) of the business owned (some examples are Articles of Incorporation, LLC Member Agreement, Tax Return Schedule)
- Most recent month's business bank statements - all pages
- Complete Merchant Processing Statements for the last 4 months (we need the summary section section as well daily transactions)
- If engaged in a merchant cash advance currently, name of cash advance provider and current outstanding balance
- Some additional documentation may be needed, though but it varies
Other requirements:
- Switch credit card processing to our provider, except in rare circumstances
- Demonstrate 3 batches on new system
- Cash wired after demonstrating 3-5 successful batches to new processor
2) New Merchant Program
There are three kinds of these deals, but paperwork requirement is similar. Importantly, the business plan must support an expected $25,000 per month in Credit Card Volume. Approval is typically 3-7 business days. Here are the three primary 'new merchant program' candidates:- Existing merchant shuts down, renovates, then restarts as same name
- Existing merchant maintains continuous operations, but changes its name under new ownership
- Brand new merchant opens up (or plans to) with no prior history
Please fax or scan/email over your company's documents well in advance of your planned start. We estimate the time from when you send your completed document package till the time when you receive a cash advance, if approved, may range from 1 to 4 weeks. Also, there is some paperwork and underwriting involved, so from a practical standpoint, you need to submit a completed package before you start. Also, since this financing requires that we become your credit card processor, we have to set that up before you start.
In each of the three cases, these would be considered as a 'new merchant program', with documentation as follows:
- Menus for breakfast, lunch, brunch and dinner where applicable
- Full copy of executed property lease/ current mortgage statement
- Full copy of executed liquor license
- Full copy of executed franchise agreement (if applicable)
- Photographs, inside and outside
- Prior merchant experience in the form of a simple resume
- Business plan including financial projections preferred but an informal document with business projects may be considered
- Purchase and Sale Agreements if the business or assets were purchased from a seller (if applicable)
- Name and contact info of the attorney or accountant, if any, handling the merchant’s purchase of business (if applicable)
- The completed Cash Federal Cash Advance application, which includes:
- Copy of Voided Check
- Copy of Driver's License for each signature on the application (enlarged copy will help clarity and expedite the process)
- Proof of ownership (a document that shows the business owner name(s) and percentage(s) of the business owned (some examples are Articles of Incorporation, LLC Member Agreement, Tax Return Schedule)
- Most recent month's business bank statements - all pages
- Complete Merchant Processing Statements for the last 4 months (we need the summary section section as well daily transactions)
- If engaged in a merchant cash advance currently, name of cash advance provider and current outstanding balance
- Some additional documentation may be needed, though but it varies
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