BUSINESS LINES OF CREDIT: MERCHANT ACCOUNT CASH ADVANCE

1^st National Processing Business Cash Advance

1^st National Processing Financial Services provides small businesses with the working capital they need for advertising, expansion, equipment, inventory, renovations, taxes emergencies, expansion and growth, or simply for cash flow in slow times.  It is very common that at some point a retail, service or restaurant owner might find themselves needing capital to grow and manage their businesses.  Many times, however, these businesses are unlikely to obtain a commercial loan from financial resources because of unacceptable debt to income ratios or low personal or business credit scores.  This can have a detrimental effect of the growth and overall success of the business. 

1^st National Processing Financial Services can help overcome this hurdle.  The assets we use to qualify the loan and funding are “real time”; the customers of the merchant and the anticipated future sales.  A health, growing businesses, that provides good products and customer service, can rely on the fact that they will constantly have both new and repeat customers that will continue to spend money at their establishments. 1st National provides a cash advance based on those sales. The BUSINESS CASH ADVANCE PROGRAM is a type of financing, called receivables factoring. This type of funding allows business owners to sell their future receivables at a discount so that they can use the lump sum of the money immediately deposited into the business account.  Using this method, a business owner can qualify for a Business Cash Advance of up to $300,000.  And the beauty of this loan is that, unlike a small business loan, a Business Cash Advance has no upfront fees, closing costs or loss of equity.

To top the off the application process is quick and easy.  Approvals take 24 hours from the receipt of the application package.  And the funds are transferred directly into the merchant’s business checking account within 5 days of the receipt of the signed contracts.

To learn more about a Business Cash Advance with 1^st National Processing Financial Services please call us Toll Free: 877-964-1622 or email us.  You may also fill out our No Obligation Business Cash Advance Pre-Application form  which will direct a qualified merchant service advisor to respond to you promptly.   Thank you for your inquiry!  We look forward to building a long term, mutually beneficial relationship.

How it works

A business cash advance provides small business owners with access to needed capital.  1^st National Processing Financial Services advances money by purchasing a pre-determined amount of the business sales volume sold through a credit card merchant account. 

This program has many benefits.  First of all, a merchant can get funding even if they have been declined for a commercial or personal loan because of unacceptable debt to income ratios or low personal or business credit scores.  The program and application process is extremely simple and quick and funding can occur in as little as 10 days.

This type of quick funding empowers the merchant by increasing cash flow opening their option to buy so they can act immediately for opportunistic buys.  It can also ensure that they will not be forced to mark down inventory to raise cash for new inventory. 

The loan has no set term, easy payback terms and conditions, it is a tax deductible expense, and builds business credit.  Once approved, merchants may receive additional funding for other purposes upon request.

To qualify merchants must meet the following criteria:

-Business Type: Restaurant, Retail or Service Business

-Must be in business for at least 9 months

-Have a merchant account to accept credit cards as a form of payment. Merchant must provide credit card processing statements for the previous 6 months and show at least $4,000 per month in credit card sales. ($2,500 for franchises)

-Provide 1-2 months of bank statements with consistent balances for higher approval amounts

-Acceptable personal and business credit (Personal credit may be as low as 500)

-No open tax liens, judgments or bankruptcies

-Be in good standing with landlord with at least one year remaining on lease

Businesses can qualify for amounts ranging from $3,000 to $300,000.

The size of the Business Cash Advance is determined by the average credit card volume over a 180 day period but cash sales and other forms of payment are also taken into consideration. 1st National encourages submission of any supporting documentation (bank statements, sales tax receipts) that reflects total sales volume in order to be approved for the highest amount possible. Merchants will be approved for the largest amount possible based upon the documentation provided.

The fee charged for a business cash advance can range from 1.25 to 1.45 of the amount funded. This fee is based upon: underwriting guidelines, length of time in business, length of lease, monthly credit card volume, average monthly sales volume and past business history.

The merchant BFS collects a small percentage of each credit card transaction through a preferred processing bank.

Does the business receive the same low rates as their existing credit card processing account?
Yes, we will match current processing rates.

How long will I have to wait to find out if the Business Cash Advance has been approved?
Approval is usually obtained within 24 hours once required documents are sent to underwriting.  Funding usually takes 1-3 weeks, from the date an application is submitted.