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Merchant Cash Advance

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We Help Small Businesses with Merchant Cash Advance

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Understanding Business Merchant Cash Advance

Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and/or debit card profits. The way this works is Merchant Cash Advance companies provide funds to businesses in exchange for a percentage of the businesses daily credit card income. This percentage is taken directly from the processor that clears and settles the credit card payment. A company’s remittances are drawn from customers’ debit- and credit-card purchases on a daily basis until the obligation has been met.

There are generally three different repayment methods for the business:

  • Split Withholding, or Split Funding: When the credit card processing company automatically splits the credit card sales between the business and the finance company per the agreed portion (generally 10% to 22%). This is generally the most common and preferred method of collecting funds for both the clients and finance companies since it is seamless.
  • Lock Box or Trust Bank Account Withholding: All of the business’s credit card sales are deposited into bank account controlled by the finance company and then the agreed upon portion is forwarded onto the business via ACH, EFT or wire. This is the least preferred method since it results in a one-day delay in the business receiving the proceeds of their credit card sales.
  • ACH Withholding: When the finance company receives the credit card processing information and deducts its portion directly from the business’s checking account via ACH.

ARE YOU LOOKING FOR A MERCHANT CASH ADVANCE?

We Specialize In Merchant Cash Advance Financing With Flexible Terms To Suit Any Business.


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How a merchant cash advance works

  • A business owner receives a set dollar amount in their bank account.
  • In exchange, the business owner agrees to pay the issuer a fixed percentage of future credit card sales until the advance, plus a borrowing fee (interest), is paid off.
  • Merchant cash advances are fixed-price funding. That means that a business owner will pay a fixed amount of interest for the upfront cash no matter how quickly they pay off the funding.
  • Payments on cash advances are made daily, and fluctuate as sales volume fluctuates.
  • Whether sales are up or down, the issuer is almost guaranteed to get their cut of the daily sales.
  • A merchant cash advance contract would usually require you to agree to operate the business to the best of your ability and not undermine business performance in order to hinder your payments. You wouldn’t be responsible to repay the advance if the business fails for reasons outside your control.

Apply for Merchant Cash Advance

Merchant Cash Advance Benefits:

Quick access to capital

No credit impact to get a quote

Eliminate short term financial needs

Flexible payments based on daily sales instead of a fixed amount

Use Funds to

Buy new equipment

Manage short term capital needs

Purchase inventory

Bridge payroll

What’s the process?

ARE YOU LOOKING FOR REVENUE BASED BUSINESS FUNDING?

We Can Design A Funding Program For Your Small Or Medium Size Business.


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Documents needed to apply

You only need FOUR things to get started:

Government-issued photo ID (Drivers License).

Voided check from your business checking account.

Last three statements from your business bank account.

Last three credit card processing statements.

When a merchant cash advance makes sense

Non-operating expenses.

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How Do I Qualify?

A merchant cash advance is based on your credit card receivables, so the main way to qualify is to have a steady flow of credit card sales. It is also essential that you already have the capability to process credit card payments, and that these play a significant role in your business.

Just like any other means of financing, there are a couple of questions to consider before applying for a merchant cash advance:

  1. How does seasonality affect your sales volume?
  2. What is your percentage of credit card sales?

Knowing the answers to these questions will help our business advisors to better serve your unique funding needs.

Apply now for a merchant cash advance

Merchant Cash Advance Features

A First Down Funding merchant cash advance gets you the small business capital you need to grow your business. It’s a simple financing solution based on future credit card sales.

Apply now for a Merchant Cash Advance

Alternatives to merchant cash advances

Business owners aren’t always interested in the absolute lowest cost of financing. Sometimes important factors like speed and ease of application are important. However, business owners should understand the financing alternatives that may be available to them.

Working capital funding

Unsecured working capital funding are another product that tend to carry high total cost of working capital and daily payments. Like merchant cash advances, borrowers can apply and receive funding quickly, often in less than two business days.

Read More

SBA-guaranteed microfunding

If business owners have time on their side, an SBA microfunding offers term funding for less than $50,000 at moderate cost of working capital (between 6.5% and 9%).

Read more

Small business credit cards

Although credit cards carry higher cost of working capital than most term funding, they offer small businesses multiple benefits. For example, a credit card may help a business build its business credit score, and in many cases interest on credit card purchases doesn’t start accruing until the end of a billing cycle.

Peer-to-peer (P2P) term business funding

P2P funding isn’t just for consumers seeking personal funding. Certain P2P platforms offer business funding at working capital cost that range from as low as 4.99% to 29.99% APR. These funding require monthly payments, but they may be funded almost as quickly as cash advances for qualified business owners.

Where to shop for short-term business funding

Business owners can apply for this short term funding quickly through First Down Funding, and receive funding in just a few days. 

Short-term business funding tend to be a better choice for many businesses. This is due to the fact that many nontraditional funders are voluntarily disclosing APRs, fees and monthly payments. Contact First Down Funding for a full review and consultation about your financing needs

Quick apply with First Down Funding today. We will deliver quickly all financing options and total cost of working capital available for your business.

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I own 2 trucks and they kept breaking down, it was extremely difficult to make ends meet. Paul Pitcher & First Down Funding exceeded my expectations.

They gave me the business funding, no problem. I am extremely happy with the process. It saved my company! I highly recommend to anyone!!

Thank you Paul Pitcher!

Hectory Samuels
999 Trucking & Logistics

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I have been dealing with Paul Pitcher and his team for 2 years now and find them to be both professional and very quick.
They make the process a seamless as possible and treat you like family friend.
I refer them as often as possible.

Thank you First Down Funding & Paul Pitcher

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Chrissy's

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Diana
Broom Inc.

FIRST DOWN FUNDING WILL FUND – THANK YOU PAUL PITCHER !!!!!

I couldn’t believe how easy and how helpful First Down Funding was when I needed a small business loan. I was looking for ways to fund some advertising for the upcoming summer months and wondered what options I had to make that happen. When I found First Down Funding online, I decided to go ahead and try it out and I was simply AMAZED at how easy and efficient it was. Everything was verified and I was able to receive my loan within no time…….if anyone can do it…….First Down Funding will fund…..

Andre B.
Window World Inc.

First Down Funding offered support financial and emotional

It’s no secret that this winter has taken a toll on many restaurants. Reduced income and increased bills. It was refreshing to be able to quickly qualify our operation and receive much needed funds that has provided the bridge to our continued future

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First experience with First Down Funding

My first experience with First Down Funding went very smooth, much better than what I anticipated

Thank you for your help!

Ardella M.
Material Storage Systems

A very smooth and easy transaction for a small business loan!

I’ve been in business for over 20 years and because my business is seasonal, March through November, this was an easy way for my business to receive quick access to money to help our business begin the new year with inventory, marketing, and early payroll. I’ve done the traditional bank way before and its such a hassle despite having excellent credit and plenty of assets. I found First Down Funding to be extremely quick, excellent short-term payments with a fair interest on their investment. I will certainly be back again next year for my annual startup capital.

Leslie H.

Great software, professional service staff

For a growing business, our biggest need is bridging cashflow while we onboard new employees to increase capacity. With First Down Funding’s software, we were able to steadily and quickly (with a couple clicks of a button as we added revenue accounts) accumulate a viable revolving line to support our trajectory. The follow-up support from First Down Funding customer service was pleasant, informative and helpful.

The cost of cash here is comparable to a traditional bank. First Down Funding introduces some other value-adds, which, depending on your business priorities, may offset the possible 6- or 12-month terms I was approved for.

Wes L.

First Down Funding quick and easy.

I was hesitant to ever use First Down Funding; it is just such a hassle to borrow money. This was much faster and easier than I expected. Money was in my business bank account within minutes. This will be paid back very quickly, unlike a credit card that would drag it out for years, if you let them.

Alesha L.

Very easy process

First Down Funding is the easiest way to get the funding you need to grow your business!

Whitney F.

First Down Funding is the light at the end of the tunnel thanks to Paul Pitcher

I recently had to expand my business office. Being a new company, I was strapped for the cash necessary to accomplish the expansion. First Down Funding came to the rescue with the funds to help. The process was simple and took only minutes. I cannot thank them enough for their help and would recommend them to anyone in need.

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Excellent service, quick funding and easy payments

I am truly impressed with there no hassle loan and I had may funds in 2 days. Even though I was approved for over 9 months for a loan, they never hassled me and when I was ready to use the funds they were still there! Thank you for a seamless loan process First Down Funding.

Genesis D.

Very easy to work with – Paul Pitcher is the man!

quick and very easy to work with

Veda L.

Great Service and Fast Business Funding!

I applied and the business funding hit my business account within 2 days. I love FirstDownFunding.com

Darell M.
Xtreme Cartage & Warehousing

Good idea and nice cash flow security for mu business.

It’s nice to know that I have that credit line if I need it for my business.

Solomon S.

Key terms to understand before you apply for a merchant cash advance

Upfront funds: This refers to the cash you’ll get immediately once a merchant cash advance clears. It is the amount of money you borrow in a merchant cash advance. In our examples, the amount borrowed is $10,000.

Price (also fixed fee, total cost): In the following examples, the merchant pays $11,400 to borrow $10,000. That means the merchant must pay back the initial $10,000 plus the $1,400 funding fee. Whether it takes you three months or six months to pay off the funding, the cost will remain $11,400.

Factor (buy rate, cash on): A factor expresses the total cost of the funding as a factor of the borrowed amount. In the second example, we see the factor rate 1.14. This means that the merchant will pay $11,400 to borrow $10,000.

Remittance rate (also daily card sales, percentage payback): The remittance rate is not your cost of working capital, even though some borrowers think it is. Business owners pay back their cash advances through a series of variable payments. The exact payment the owner makes each day is based on a percentage of credit card sales for the day. In both examples, we see that the merchant agrees to commit 11% of credit card sales per day to the funding. On a day where the merchant takes in $4,000 via credit cards, she will pay $440 toward the advance. On a day where she takes in $8,000 she’ll pay $880 toward it.

Origination fee: Most of the time, origination fees are calculated into the total price of the funding (explained above). However, an MCA Funder could charge an origination fee on top of their factor fee. This drives up the total cost of the funding.

Example 1: Cash advance product priced based on borrowing cost

Amount borrowed$10,000
Credit score needed500 FICO
Time to get cash24 hours
Borrowing cost$1,400
Total cost$11,400
Percent of daily credit card sales11%

Example 2: Cash advance product priced based on factor rate

Upfront funds$10,000
Factor rate1.14
Remittance rate11%
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