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Working Capital for Your Business
If you are a business owner it is difficult to not be extremely pissed off about the current state of the economy. The biggest and richest individuals in this country created a mess and our tax dollars are now subsidizing their bail out- which will just make them richer. Those are the facts. As a business owner you have the option of rolling over and giving up….or raising capital, working harder, and smarter to achieve your goals. This program is about providing working capital to allow you to fight another day.
Learn More
How can I use the funds?
How it works
Benefits
Who Qualifies
Case Study/Example
Apply Now
Once you are approved for our credit card advance, the funds go straight to your bank account and you may use them for anything your business needs!
• Buy new inventory.
• Buy better equipment.
• Buy advertising and Increase your sales.
• Expand your business.
• Keep your business on its feet.
• You submit our application and four months of credit card statements.
• You sell a dollar amount of your future credit and debit card sales in exchange for a lump sum of cash.
• You make sure the processing and paperwork is addressed, and then you receive your money.
• You spend it on any business purpose.
• You continue business as usual. As you batch credit and debit card sales, a fixed percentage is forwarded to the provider through the credit card processor.
• Faster than the bank with less collatoral
• Repayment done on YOUR schedule based on YOUR business sales.
• We actually approve small businesses!
• Easy application process- one page application + four statements. That’s It!
• You sell a dollar amount of your future credit and debit card sales in exchange for a lump sum of cash.
• You make sure the processing and paperwork is addressed, and then you receive your money.
• You spend it on any business purpose.
• You continue business as usual. As you batch credit and debit card sales, a fixed percentage is forwarded to the provider through the credit card processor.
If you can answer “Yes” to the following questions- You will qualify.
1. Fixed brick and mortar non-home based business location.
2. At least 12 months in business under the current ownership at this location.
3. Minimum of 50 V/MC tickets processed per month.
4. Average Ticket Price per transaction under $250.
5. At least 80% of business handled in card-present transactions.
6. Averaging at least $5,000 a month in V/MC card volume.
7. Monthly V/MC card volumes remaining steady or increasing.
8. Not more than 30 Days late on your mortgage.
This illustration is a specific example from one of our past customers to explain how our working capital program works. After being turned down by her bank, a restaurant owner approached us needing $21,000 for a patio expansion. After submitting her application and processing statements, it was determined that she qualified for a $21,000 advance.
To understand this process clearly, it is important to know who is involved:
• Your Business
• Commercial Lease Solutions- the cash provider
• Your credit card processor
• Your customer
The Set Up
To get this money, you would sell Commercial Lease Solututions the right to receive a set amount of her future credit card sales – in this case it was $25000.
The customer sold us $25,000 worth of future credit card sales to receive the $21,000 she needed. Basically speaking, the $4,000 difference is the cost of the money, which goes to Commercial Lease Solutions (*please note, the actual amount going to the provider varies, but it is always clearly established in the terms of the agreement and never varies throughout the term).
Our restaurant owner received her $21,000 two days after signing the contract. Commercial Lease Solutions set up with the processor to automatically handle everything directly with them. Their are situations that require us to switch your processor to one that understands this process. If this switch is necessary, it can be handled quickly, and almost always results in you SAVING MONEY on your processing.
Repayment
Easy! The only difference now is that when our restaurant owner runs a batch on her credit card activity, a small fixed percentage of it will be forwarded to Commercial Lease Solutions. This continues until the full amount she promised to pay the cash provider is delivered. One of the most attractive parts of this advance is the fact that most merchants do not even NOTICE the payments being made and equate it to 401k contributions. Seamless and easy!
In this case, the agreement called for her to forward 10% of her batches until the Cash Advance provider has received all $25,000 (the actual percentage of receivables taken is determined by industry and loan size, but once that is determined, it is fixed. The only variable is how much business that you do)
She runs a batch report on Monday and sees that she processed $2560 in credit and debit card sales over the weekend. 10% of this is $256.00, so this amount ($256) is automatically forwarded to the provider. It reduces the amount of future credit card receipts she owes to $24,744.00. She did nothing different—business as usual; however, her credit card processor adjusts her batches to send Commercial Lease Solutions a fixed percentage until her obligation is fully met.
Does this mean the forwarded amount will always be $256?
No. It means that whatever her sales are, 10% of the credit and debit card sales will be forwarded. The percentage is fixed, not the dollar amount. So a busy day means she is forwarding a little more, a slower day allows you to forward less. If only everything was so logical!
These transactions will occur every time you batch your credit and debit card sales until your obligation is met in full. (Our typical term is 8-12 months. Once this point is reached, the provider immediately stops receiving anything from your processing and the obligation is fulfilled. We find that almost 2/3 of our customers COME BACK when they are done!
We hope this clarifies the process but are always happy to speak with you.
