MERCHANT CASH ADVANCE
Probably the most versatile product of the Specialty Finance Industry, a Merchant Cash Advance could be just what you were looking for. Eliminating most of the headaches associated with traditional forms of financing, a Merchant Cash Advance offers a variety of options. A Merchant Cash Advance provides business owners with a lump sum payment in return for the right to collect a small, agreed upon, percentage of the businesses credit card receivables or fixed daily or weekly ACH payments. Merchants can use the working capital proceeds for inventory, services, equipment, settling past debts or just about anything they need to grow and maintain their business.
BUSINESS LOANS OR SBA LOAN PRODUCTS
Business Loan Products and SBA Loan Products are a great option for small to mid-sized businesses that are unable to get approved for traditional financing, are unwilling to deal with the hassles of a long approval process and mountains of paperwork. These businesses can turn to FMA to provide access to different types of Business Loan Products. The rates are very comparable to traditional financing and the terms range from 2 years to 10 years. Depending on a merchant’s qualifications and underwriting guidelines, they may qualify for weekly, bi-monthly or monthly payments. This product is best for merchants with better credit history and provable positive business cash flow. This product can be considerably cheaper than a Merchant Cash Advance, rates vary based on program type, borrower credit, business credit and the term length.
Factoring receivable invoices is the sale of an asset – your invoice. The sale of your invoices to a third party – known as a Factor – eliminates the sale-to-collection business cycle of waiting for payment. A factor will purchase your invoices for up to 90% of the total amount. Get your cash now and the factor takes on the risk of collecting the payments from your customers. The creditworthiness of your customers is very important if you want to get a good rate from a factor.
PURCHASE ORDER FINANCING
Purchase order financing (or PO Funding) is a short-term commercial finance option that provides capital to pay suppliers upfront so your company doesn’t have to deplete cash reserves. Here is a representative scenario: A business that has a solid purchase order ready to fulfill, but not the funds to pay its suppliers upfront; nor a bank willing to extend the amount of credit that would be required. Using a purchase order finance option, the suppliers are paid directly usually via a letter of credit. The business fulfills the order; with proceeds arriving after shipment is received. Usually you can get up to 75% of the money needed to produce the product. 100% is possible. It has to be something we can track plus an item you can have delivered within 60 days. The cost is usually 3% for 60 days plus 1% per every subsequent 30 days.
Instead of waiting until you have the cash on hand to make major equipment purchases, an Equipment Financing program is a savvy alternative for obtaining the equipment needed to operate and grow your business. Your business could receive the equipment now and pay for it over time, while it generates the profits to pay for itself, allowing your business access to the tools it needs to thrive, through the right type of funding.
Progress payments work best for our merchants in the contracting and sub-contracting industry. Traditionally, when a contractor has completed a portion of a work order, or a sub-contractor has completed their assigned portion of a work order, either party generally has to jump through a ton of hoops to gain access to working capital. With First Merchant Access, our contractors and sub-contractors have the option to seek out progress payments that will pay them for the work as it is completed.
ADDITIONAL FINANCING OPTIONS THAT FMA ALSO PROVIDES INCLUDE:
• Sale-Lease Back Financing
• Business Acquisition Financing
• Commercial Bridge Loans
• Asset-Based Lending
• Lines of Credit
• Equity Financing
• Commercial Real Estate Loans