Merchant Cash Advance

Question 1

When to use pre-pitch calculator

Answer 1

First phone call- only when necessary

After receiving the package

As ammunition for rebuttals

Question 2

CCTI

Answer 2

Credit

Cashflow

Time in business

Industry

Question 3

CCTI= ?

Answer 3

CCTI= Pact

Program

Amount

Cost

Term

Question 4

Factor Rate is determined by?

Answer 4

CCTI

Question 5

Term vs rate spectrum

Answer 5

Short Term– Low rate high holdback

Longterm- high rate low holdback
(higher the term higher the rate)

(Lower the term lower the rate)

Question 6

3 Payback options:

Answer 6

Lockbox

ACH

Split processing

Question 7

Lockbox is?

Answer 7

credit card sales or revenue credited to a business bank account is split where a portion is forwarded automatically to the lender and the balance is sent to the business owner. This method is the least advantageous for the business because there is a one-day delay in receiving the funds from credit card sales.

Lockback is external 3rd party (Bank account) who secures the funds as a midde man between Fora and the merchant

Question 8

Who uses lockbox?

Answer 8

Merchants with Poor cash flow

Average ledger is atleast $1,000

they hold a small amount like $250 until payback is complete

Question 9

What is ACH withholding?

Answer 9

the merchant cash advance provider receives the credit card processing information and directly deducts a pre-agreed portion from a checking account via ACH

Question 10

How can a merchant get ACH?

Answer 10

Good Cashflow, time in business, # of deposits

We obtain info like their login to their CC processor.

Fund Same day

Question 11

what is split processing?

Answer 11

Split withholding is when collection is done via the credit card processing company by automatically splitting the credit card sales between the business and the merchant cash advance provider. 1 of 4 most likely Integrity

Question 12

Who uses Split Process

Answer 12

this is when they change processor.

although it is a bit more complicated it provides the merchant with a discount and the sales rep a small commission.

Question 13

How long does split processing take to set up

Answer 13

2-3 days with a normal terminal

Change on a monday, see all transactions on a tuesday fund the account on Wednesdays

POS systems takes a week as they require software

Question 14

What is Merchant Cash Advance

Answer 14

this is a flex program based on CC sales.

Payback on a fixed % every time they batchout

It is one flat cost which is determined by the loan amount * the factor rate