Business Funding FAQs

1. Your business must accept a minimum of $5000 in VISA/MC if you are in business one year+.
2. If you are in business from one month to just under one year, your VISA/MC sales must be at least $10000 per month.

How does the funding process work?[< back]
The program is very simple. The funding company purchases from businesses that accepts credit cards, a fixed dollar amount of their FUTURE VISA/MC sales, and in return gives the business cash.

Therefore, if a business owner is thinking of expanding the business, opening a new location, buying out a partner, buying equipment or just wants an extra cushion of cash during a slower season, but doesn’t have immediate cash on hand and doesn’t want the burden of a long bank loan, he or she can get a cash advance on their business’s future VISA/MC sales.

How is the cash advance repaid?[< back]
This is the great part about the program. The business repays the cash advance, not by writing out a check each month, but automatically, through a small portion of future, daily VISA/MC sales, generally 20% or less. Although the percentage deducted from future VISA/MC sales is fixed, the dollar amount repaid can go down or up, depending on how busy or slow the VISA/MC sales are on any given day. Business owners like the fact that when they are slow, the funding amount repaid is less, which helps a great deal with cash flow.

What determines how much capital my business can receive?[< back]
There are a few factors involved in how much capital a business may be funded:

1. The dollar amount of a business’s monthly VISA/MC sales. The more VISA/MC sales, the more cash advance a business is eligible to receive. When determining what amount to fund a business, the funding company takes an average of a business’s last 4 months of VISA/MC sales. The amount funded can be anywhere from 70% to 150% of that average.
2. How long in business. In most cases, businesses open one year or more can be eligible to receive the maximum amount of funding. Those in business less than one year receive less.
3. Credit. Unlike conventional lending institutions that place almost 100% of their lending criteria on credit worthiness, the cash advance program is different. Because this is not a loan, but a cash advance against future credit card sales, therefore, a person’s credit can be much less than perfect and he or she can still receive the funding they need for their business.
4. If a business owner has not had a bankruptcy in last 365 days, has no tax liens over $175K, and is current on rent, generally he or she will be eligible for funding.

What is the minimum amount of VISA/MC sales required to get funded?[< back]
 $10000 monthly VISA/MC sales if in business less than one year; $5000 for one year+.

Do you also include American Express and Discover as part of minimum sales required? [< back]
No. Only VISA/MC sales.

What is the maximum amount one business owner can be funded?
$1Million. That can be for one location that does that amount in VISA/MC monthly, or for multiple locations that do a total of that amount in VISA/MC sales monthly.

How long does it take to receive the cash advance?[< back]
In most cases, 10 days or less.

Are there application or administrative fees?[< back]
None.

How long is the cash advance?[< back]
We have plans that start at 6 months, 7 months, 9 months, 11 months, and one year+.

How much will the cash advance cost?[< back]
The cost of the cash advance depends on how long a business is open, how long it will take to repay the funding, type of business etc. There is no one set rate for all businesses because each type of business has its own risks. Before a merchant completes paperwork, we go through costs thoroughly to make sure that the merchant fully understands the cost of the program.

Do I have to change VISA/MC credit card processors to get funded?[< back]
FOR BUSINESSES OPEN ONE YEAR+: No, you do not have to change credit card processors. Instead, we can debit your account each day for a certain fixed amount until you have repaid the funding.

FOR BUSINESSES OPEN LESS THAN ONE YEAR: Yes, you do have to change processors, however, we will try to save you money by getting a better credit card rate for you. The changeover is seamless and nothing physically changes.

Most merchants do switch regardless of how long they have been open because we usually can save them money through our processors. And merchants like the fact that not a certain fixed amount is being debited from their account. Instead, by using our processor the amount of money repaid ebbs and flows with a business’s daily VISA/MC sales.

Do I have to get a new credit card terminal or change bank accounts to get funded?[< back]
No, you do not have to change bank accounts, or credit card terminal. However, if you wanted a new terminal, we can get you one at our cost. The changeover process generally takes less than half an hour and is done during your business’s off hours.

How long do I have to stay with your processor?[< back]
For the term of the funding only. However, most merchants stay with our processors because of the low rates, excellent customer service and incase they need to get funded again right away, everything is already set up.

Is this a loan? [< back]
No. Although Wells Fargo Bank and Brown Brother/Harriman, the investment banking company underwrite us, we are not a bank, but an alternative funding company. Therefore we do not charge interest, but a fee for the money.

How long have you been in business?[< back]
We have been in business since 1997 and are the oldest and largest alternative funding company in the US. To date, we have funded close to $1 billion to businesses that accept VISA/MC.

We have been written up by The Wall St. Journal, Entrepreneur Magazine Business Week’s, Small Biz Magazine and many other large business publications as the best alternative to traditional banks.

How much paperwork is involved? [< back]

1. Complete a short, one page application
2. Two agreements to be signed if you are using our processor (one for funding, one for credit card processing),if not, then just funding agreement to be signed
3. a legal document that shows proof of your ownership of business, which can be a business license , LLC/INC papers, etc.
4. a voided check where funds are to be deposited.

Can I renew my funding?[< back]
When you are about 70% paid, we will start monitoring your account, once you reach 90% repaid, someone from our office will contact you to let you know you will be eligible for a renewal providing your financial situation has not changed (i.e. late on rent etc.)

How can I start the funding process?[< back]
It’s easy: Fax us the last 4 months of VISA/MC statements from your VISA/MC processor. Please make sure all pages are sent, particularly the page that says, VISA/MC SUMMARY. Fax to: 609-823-1122.

Once we average your VISA/MC statements, we will be able to let you know how much funding is available to you and give you a few options on terms etc. At that time, we can analyze your credit card rates to see if you are getting the best possible rates. If the options available seem like something you want to pursue further, then we will send you the application and agreement(s). If not, at least you have the information.

Who can I call right now with questions about the program?[< back]
877-600-FUND or go online at www.fundswired.com

How can I get started right away? [< back]

1. You can call our office at 877-600-FUND.
2. Go online to www.fundswired.com and go to contact us and someone will be in contact with you shortly.
3. Fax us the last 4 months of your VISA/MC statements to 609-823-1122 and we will call you immediately.