Merchant Cash Advance Frequently Asked Questions Resource Page

1) What can Merchant Cash and Capital do for my small business?

2) How can I use the cash?

3) How does Merchant Cash Advance work?

4) What are the minimum requirements to qualify for an unsecured business cash advance?

5) How long will I have to wait to find out if I have been approved for my merchant cash advance?

6) How much can I qualify for?

7) How soon can I have the cash?

8) Will I receive the same low rates as my current credit card processor?

9) Will I be able to monitor the progress on my account?

10) Is a merchant cash advance the same as a small business loan?

11) What types of business qualify?

12) Who can answer my questions, or help me start the funding process?

13) Is this like a bank loan where I have fixed fees I have to pay every month?

14) What documents will the merchant have to submit to complete underwriting requirements?

15) Is this a bank loan?

16) Do I have to purchase new equipment to accept your cash advance?

17) How can I speed up my cash advance approval?

18) Can a merchant accept two cash advances at the time from two separate companies?

19) What if I have a terminal that is locked up by my current processor?

20) What is a proprietary terminal?

21) Does the merchant have to process with MCC in order to accept a cash advance?

22) How much will a merchant cash advance cost?

23) What are the ranges of cost I should expect to pay normally?

24) How is the merchants pay back of the cash advance amount calculated?

25) Will the merchant have to pay an early termination fee if they have a contract with the current processor?

26) Will MCC cover the cost of the early termination fee?

27) What if the merchant has bad credit?

28) Is there any personal recourse?

29) Are many merchant's turn downed for MCC/Cash Advance.

30) How much of a cash advance can a merchant receive?

31) Does the merchant have to take the full amount that they qualify for?

32) Is MCC providing the cash or is another company providing the cash?

33) Can merchant take more money before they have paid off entire cash advance?

34) How many cash advances can I accept in a 30 day period?

35) Is MCC a public company?

36) What is the difference in processing with a MCC processor and the company you are with?

37) Why do you need to see my financial information?

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1) Question: What can Merchant Cash and Capital do for my small business?
Answer: We offer you a way to improve your small business for the future giving you access to working capital today. It is not a bank loan or small business loan, so you are more likely to be approved.

2) Question: How can I use the cash?
Answer: You may use the cash any way you see fit; expansion, inventory, marketing, cash flow, payroll, taxes, renovation and many other needs.

3) Question: How does Merchant Cash Advance work?
Answer: The funding process is simple. Merchant Cash and Capital purchases your future credit card transactions and advances that money to you. After you have your merchant cash advance, we will deduct a small fixed percentage from your daily credit card sales until the advance is made whole.

4) Question: What are the minimum requirements to qualify for an unsecured business cash advance?
Answer:
a) Merchant must have a business that accepts VISA and Master Card as a form of payment.
b) Merchant must have a minimum of $10,000 dollars a month in Master card and Visa sales.
c) Merchant must have no open bankruptcies or judgments
d) Merchant must have accepted MC/Visa credit cards for at least 4 months


5) Question: How long will I have to wait to find out if I have been approved for my merchant cash advance?
Answer: Pre-approval is usually obtained within 24-48 hours. Funding can take as little as 72 hours depending on the amount of the transaction and the time it takes to receive the necessary documents required.

6) Question: How much can I qualify for?
Answer: Your monthly credit card volume will qualify you for up to $250,000. The amount of receipts purchased is determined by your average Visa/MasterCard volume over a 90-120 day period.

7) Question: How soon can I have the cash?
Answer: After a complete contract is submitted and approved, funding can happen in as little as 72 hours.

8) Question: Will I receive the same low rates as my current credit card processor?
Answer: The funding process works through your credit card terminal so we may need to switch you over to one of our preferred credit card processors. We work with an outstanding organization that will match or may beat your current rates, and will make the transitions virtually seamless.

9) Question: Will I be able to monitor the progress on my account?
Answer: Once you receive a merchant cash advance you will receive a username and password. This will allow you to log into Merchant Cash and Capital's Cash Advance Management System (CAMS) to view and track your account online.

10) Question: Is a merchant cash advance the same as a small business loan?
Answer: No, a merchant cash advance is not a small business loan or a bank loan. We require minimal documentation, no interest rates, and funding in as little as 72 hours. Since a merchant cash advance is not based on credit, you will most likely have an easier chance of being approved.

11) Question: What types of business qualify?
Answer: Merchant Cash and Capital works with service, restaurant, and retail businesses.

12) Question: Who can answer my questions, or help me start the funding process?
Answer: You can reach our Merchant Cash and Capital representative at 866-792-9366 from 9am-6pm EST, Monday-Friday, fill out our Contact Form, or you can email us at customerservice@merchantcashandcapital.com.

13) Question: Is this like a bank loan where I have fixed fees I have to pay every month?
Answer: There are no fixed payments and no fixed term time frame for repayment of the business cash advance. The only fixed amount is the percentage of daily revenues that the merchant agrees on to pay back advance and the factor rate that is agreed on.

14) Question: What documents will the merchant have to submit to complete underwriting requirements?
Answer:
a) 4 most recent merchant processing statements
b) 4 most recent bank statements (All pages-originals only -no internet copies accepted) Note: If the merchant's business is seasonal they must provide 12 months of past credit card statements and bank statements.
c) Copy of Lease (front page & signature page and or a signed lease extension letter if current lease has expired)
d) Copy of Drivers License
e) Copy of voided check for the business account where the money will be deposited and ACH'd.


15) Question: Is this a bank loan?
Answer: This is not a bank loan. Our program purchases future Master Card and Visa processing revenues and advances that money the merchant so they can use it now.

16) Question: Do I have to purchase new equipment to accept your cash advance?
Answer: Typically, no. Most merchants (somewhere around 95%-97% of merchants can accept our download of our software in the terminal that they already own.

17) Question: How can I speed up my cash advance approval?
Answer: You may do the following: Prepare four (4) months of most recent Visa/Master Card processing statements and four (4) months of most recent complete bank statements (originals only, not printed from the internet) our funding specialist will speak with you about where to send them when he calls you back.

18) Question: Can a merchant accept two cash advances at the time from two separate companies?
Answer: NO. The original cash advance will be paid off by the new cash advance. The merchant will receive all remaining funds after the first cash advance is paid off.

19) Question: What if I have a terminal that is locked up by my current processor?
Answer: If the merchant has a proprietary terminal, funding specialists will speak with merchants about other options.

20) Question: What is a proprietary terminal?
Answer: Proprietary terminals are lockout terminals and are sold by some processors in order to prevent competitors from presenting competitive offers for merchants to process credit cards with their competitors.

21) Question: Does the merchant have to process with MCC in order to accept a cash advance?
Answer: Typically yes. We match your current rates and fees of your current processor.

22) Question: How much will a merchant cash advance cost?
Answer: Each merchant's pricing is specific to their financial scenario. The following information is used to determine pricing:
a) The amount of the cash advance the merchant qualifies for versus the amount advanced to merchant.
b) The projected time of use of funds before full re-payment
c) Additional factors including but, not limited to the full underwriting review of documents submitted for consideration.
d) Fico score

23) Question: What are the ranges of cost I should expect to pay normally?
Answer: All pricing is specific to each merchant's financial scenario and is pre-determined by company underwriting guidelines. For a more specific answer you can have a no cost consultation with one of our funding specialist.

24) Question: How is the merchants pay back of the cash advance amount calculated?
Answer: Our underwriting department reviews the documents we require in order to determine how much cash will be advanced. We then offer options to the merchant so they can decide which offering fits best with their business needs.

25) Question: Will the merchant have to pay an early termination fee if they have a contract with the current processor?
Answer: "If" merchant has an early termination fee, yes they will have to pay it.

26) Question: Will MCC cover the cost of the early termination fee?
Answer: MCC does not cover merchant's cost to end the other company's contract. The upside is that the early termination amounts are usually so small that they don't ever usually stop merchants who see the value of using the cash advance to help their business grow.

27) Question: What if the merchant has bad credit?
Answer: The MCC funding solution is built to provide assistance to merchants who process credit cards in their business. A poor credit rating, including delinquencies alone will not determine the approval or decline of a cash advance. We fund deals with very low fico scores.

28) Question: Is there any personal recourse?
Answer: T here is no personal recourse. We do not seek repayment from you personally if you cannot pay back the advance. That being said we take care to make smart underwriting decisions before we approve merchants. We have a very low rate of merchants who default.

29) Question: Are many merchant's turn downed for MCC/Cash Advance.
Answer: We have a very high approval ratio (90%). Our underwriting requirements assist us in making win-win scenarios for merchants and our funding solution program.

30) Question: How much of a cash advance can a merchant receive?
Answer: merchants can receive up to 125% of their average Master Card and Visa monthly processing volume.

31) Question: Does the merchant have to take the full amount that they qualify for?
Answer: No, merchants are not required to take the full amount that they qualify for. Merchants are free to decide how much they want to use.

32) Question: Is MCC providing the cash or is another company providing the cash?
Answer: MCC is the direct funder. We use merchant processors to split the funds between the merchant and the cash advance company.

33) Question: Can merchant take more money before they have paid off entire cash advance?
Answer: Merchants may qualify for another cash advance once they have paid back typically between 50%-60% of outstanding business cash advance.

34) Question: How many cash advances can I accept in a 30 day period?
Answer: Merchants will not qualify to receive more than two cash advances in any 30 day period.

35) Question: Is MCC a public company?
Answer: No, MCC is still privately held.

36) Question: What is the difference in processing with a MCC processor and the company you are with?
Answer: We believe aside from the technology which, by the way, happens to be world class and includes redundant operating systems that prevents us from having a service interruption. We believe that it is our customer service philosophy that makes MCC different. We believe that we are a customer service company that provides merchant cash advances

37) Question: Why do you need to see my financial information?
Answer: Providing cash to any customer without the benefit of reviewing their financial history would be too risky business. I am sure you understand. We make money when we provide cash to merchants. Imagine how fast we would be out of business if we did not check the background of the companies we provide cash to. Finance solution companies the world over ask for and are provided merchant's financial information in order to evaluate whether or not, based on underwriting requirements, if providing money to the particular merchant is a good business decision. We are no different.