Taya Weiszhaar, Mortgage Agent

705.758.1115 | 1.866.445.4021 | taya@mortgagegrp.com

February 25, 2018
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Short Term Business Loans
TMG The Mortgage Group has partnered with Merchant Capital Group to offer Small Business Loans.

Here’s how it works:

A Merchant Advance is not a loan; it is a discounted purchase of future debit/credit card sales. It has been designed to provide growth capital to small-medium sized businesses with no collateral required.

The repayment amount is paid down a little bit each day through the sales made on your credit card machine. Each day a percentage of your card sales automatically go towards chipping away at your balance until the repayment amount is $0.00.

Benefits of a Merchant Advance:

  •     No interest rate – the amount owed will never grow, so you know exactly how much the funds will cost from day one.
  •     No fixed payments – repayment is made on a daily basis, through a percentage of your debit/credit  card sales. If you see $200 one day in debit/credit sales and your daily withholding is 10% then $20 will automatically go to chipping away at your balance.
  •     No collateral required.
  •     No changes to your existing hardware – Merchant advances are compatible with any Merchant service provider.
  •     Receive funding quickly – your business is able to receive funding in 7 business days.
  •     Repaid quickly – Merchant advances are modeled to be repaid within a year so your business debt does not become burdened with long term debt.
  •     Does not report on your credit bureau.

 How do I know if I would qualify for a Merchant Advance?
  •     The business has been open for at least one year
  •     Processes at least $5,000 consistently per month in debit/credit card sales
  •     Batch out your sales a minimum of 10 times per month
  •     Must have a physical location with at least 1 year remaining on lease

What can a Merchant Advance be used for?
The funds can be used for any purpose. Some examples are:
  • Inventory Purchases
  • Renovations
  • Advertising
  • Expansion
  • Equipment Repair
  • Working Capital
  • Buying out a Partner
  • Debt Reduction
  • Tax Payments
  • Emergency Situations

How much does a Merchant Advance Cost?

There are no application fees or obligations when applying. The cost of a Merchant Advance is different from a loan. There is no interest rate; rather a fee that is agreed to at the beginning of the deal. This is called a "factor fee” that is applied to the advance.

For example, the factor fee typically ranges between 1.3 x – 1.5 x, so the advance of $100,000 will have a repayment of anywhere from $130,000- $150,000.

In terms of size, a merchant can typically qualify for 1.0 x 1.5x its monthly debit/credit sales volume.

Will bad credit affect my application?

A credit bureau is pulled on each deal. Though credit score is a factor in the decision, Merchant Capital does its best to evaluate the business as a whole.

What is the length of a typical Merchant Advance program?

Typically the repayment balance is paid down sometime around 7-10 months. However, repayment is dictated by the card sales of the business. Sometimes it may be shorter if sales are higher and if sales are lower than anticipated then it will then take longer.

How long does it take for a client to get funded?

Funding can be provided in just 7 business days upon receiving the completed application forms.

Contact me today and let's get you started with Merchant Capital Group in no time!
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