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Presenter: Gary Lockwood
Moderator: Kelley Spencer
Overview
About AmeriMerchant
What is a Merchant Cash Advance
Merchant Cash Advance Benefits to the merchant & to ISO’s/Sales Reps
Required Documentation for MCA
Merchants To Target
Merchant Cash Advance Programs
Payback
New Product ‐ Main Street Business Loans
What is Main Street Business Loans
When is MSBL a good option
States MSBL is available in
Required Documentation for MSBL
Why now is a good time to offer working capital
About AmeriMerchant
Leading provider of working capital solutions
One of the oldest and most reputable providers in the merchant cash advance
industry
→ Founded in 2002
→ Headquartered in New York City
Founding member of North American Merchant Advance Association (NAMAA)‐
Best Practices for MCA Industry
Can provide up to $500,000 in working capital
Advanced real‐time reporting system
Can advance against all card types
Fast underwriting & approval times
What Is A Merchant Cash Advance
Definition: Merchant Cash Advance (MCA) is an alternative financing solution which
offers merchants access to capital based on their monthly credit/debit card sales.
Through the purchase and sale of credit/debit card receipts, money is advanced
upfront to a merchant and the advance is repaid by taking out a small % of the daily
credit/debit card sales until the advance is paid off.
Example based on an average credit card processing volume of $75,000/month
Benefits to Merchant
Higher approval rates than traditional finance products
→ Most small businesses don’t have fixed assets to pledge
→ Many merchants have a hard time obtaining loans from banks
No fixed monthly payments
→ Works with their cash flow
→ Repayment is made by delivering a fixed % of a merchant’s future credit card
sales to the purchaser (the MCA Provider)
No personal guarantee
Some uses for a Merchant Cash Advance
→ Advertising, Expansion, Partner Buyout, Cash‐flow, Renovation
Benefits of a Merchant Cash Advance
Benefits to ISO’s / Sales Reps
High Commissions
Obtain high quality merchants
→ Average processing volume $20,000 ‐ $22,000/month
→ Typical low risk processing industries:
• Restaurants
• Card present environments
• “Merchant Acquirer Friendly” SIC Codes
→ Acquire merchants without selling on price and avoid bankcard margin compression
Lower merchant attrition / higher retention
→ 70% of merchants renew for additional working capital
Required Documentation for Merchant Cash Advance
AmeriMerchant working capital application
Last 4 months credit card processing statements
→ 2 months if only in business for 2 months
Most recent bank statement
Driver’s license
Proof of business ownership
Blank, voided check
Merchants To Target
Process at least $5,000 per month in Visa/MasterCard sales from their customers
Credit cards processed daily
Average transaction size $500 or less
Cards are swiped in person at place of business
Brick and mortar locations
Merchant owns their inventory (no drop shipping)
Batches out their terminal at least 10‐12 times per month
Some ideal business types to target*:
Restaurants Hair & Nail Salons
Nightclubs/Bars Coffee Shops
Day Spas Pet Supplies/Grooming
Pizzerias Sporting Goods Stores
Clothing Stores Laundromats
Liquor Stores Florists
*while these are ideal business types to start out with, we can review nearly any
industry that accepts credit cards for their services and products.
MCA Programs
Traditional Merchant Cash Advance
The majority of merchants will fall into this program
Ideal for brick and mortar retail locations with small tickets and daily batching
Merchants usually approved for up to 80‐100% of their average monthly
processing volume
Pay back within an estimated 6‐9 months
New Business Program
For merchants who have been in business under their current ownership for less
than 1 year
Qualify for less funds – generally about 50‐60% of their average monthly
processing volume
Can be processing for as little as 60 days / 2 months
MCA Programs
Trial Advance Program
Designed for merchants who are lacking in one of our approval requirements:
lease/mortgage standing, credit score, small liens
Must process at least $10,000/month and have been in business for at least 6
months
Qualify for 25‐35% of their average credit card volume
Quick estimated turnaround: 2 ½ month program
Excellent renewal opportunities
Platinum Program
Factors range between 1.19 – 1.349 over an estimated 5‐10 months
Additional upfront fees apply
Stricter underwriting requirements
Collection Methods and Fees
1) Pass-through Account (PTA): To collect on the payback, a separate business checking account
is opened in the merchant’s name. The full deposit is diverted into the Pass-through account, where
the withholding is applied. The funds are then swept to the business owners original Bank via ACH
transfer.
• $25 monthly maintenance fee for the life of the advance
2) Split Funding: We have the ability to provide merchant cash advances without having the
merchant switch processors. This process is seamless and is a very strong selling point. The
term for this is called ‘split funding’. The percentage we take to repay the advance comes
directly off the credit card batch and is sent to our company. The bulk or the rest of the
batch/settlement will be sent to the merchant’s bank like it normally would. For risk purposes,
we typically need to see 2 nights of normal size batches with the ‘split’ turned on. We then can
proceed with our processes of funding a merchant.
Fee Breakdown: While no application fee is ever charged to the merchant, a processing
fee does apply should they choose to take the advance. In order to recover some of the
associated costs of underwriting the fees are applied as follows:
• for deals $10,000 and over: $295
• for deals $5,000 and $9,999: $195
• for deals $4,999 and below: $95
Features:
Average MSBL funding size is nearly double that of a MCA
Fixed daily payments
No minimum processing volume required
Only need to be in business 1 year (540 Fico Score or higher)
Considerably less documentation needed than a bank loan
Future delivery accepted
High approval rates
What is a Main Street Business Loan?
Definition: an alternative business loan is a short‐term loan program based on total
gross monthly sales volume.
Financing up to 11% of the gross yearly sales
Fixed daily payments / direct ACH (Monday‐Friday)
Program terms range from 3‐10 months
Premium pricing available
Example based on average gross volume of $75,000/month
1.359/8 1.29/5 1.19/5 1.15/3 1.299/10
Program: Standard Standard Premium Premium Premium
Pricing Pricing Program Program Program
Loan Amount $50,000 $50,000 $50,000 $50,000 $50,000
Payback $67,950 $64,500 $59,500 $57,500 $64,950
Daily Repayment $424 $645 $595 $958.33 $324.75
When Main Street Business Loans is an option
MCA MSBL
Limited credit card volume *
Frequent batching, low daily transactions *
High average tickets and/or future delivery *
E‐Commerce and MOTO *
Store‐front (brick and mortar locations) * *
Warehouses, manufacturers, etc. *
Home‐based businesses *
Auto Repair and Sales * *
Restaurants, retailers, etc. * *
Doctors, Lawyers and other Licensed Professionals *
States we can do business in
• Alabama • Mississippi
• Arizona • Missouri
• California • Nebraska
• District of Columbia • New Hampshire
• Georgia • New Jersey
• Idaho • New Mexico
• Illinois • North Carolina
• Indiana • Ohio
• Iowa • Oregon
• Kansas • Pennsylvania
• Louisiana • South Carolina
• Maine • Utah
• Maryland • Washington
• Massachusetts • Wisconsin
Required Documentation for MSBL
Application signed by 51% or more of ownership
Last 4‐6 months of bank statements (all pages)
Driver’s license
Proof of business ownership
Blank, voided check
Now Is The Perfect Time To Offer Working Capital
Upcoming Holiday Season
Holiday sales can amount to 25%‐40% of many retailer’s annual sales
Retailers need working capital now for inventory / advertising / marketing for the
holiday season
Retailers need to avoid “empty shelves” at all cost
Banks lending requirements are still stringent with small businesses
With banks being tighter than ever, we are seeing better credit worthy applicants
applying for a Merchant Cash Advance & Main Street Business Loans
For these more established businesses with better credit, we can offer a lower cost
product than standard merchant cash advance rates
Faces of AmeriMerchant
Training, Assistance and Agent Support:
David Goldberg Gary Lockwood
Director of Business Development Director of Business Development
(800) 267‐3790 x113 (800) 267‐3790 x135
dgoldberg@amerimerchant.com glockwood@amerimerchant.com
Kelley Spencer
Business Development Coordinator
(800) 267‐3790 x138
kspencer@amerimerchant.com
Isosales@amerimerchant.com