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Merchant Cash Advance | An easy way to get capital for your business

Posted by Alex Neir on Tue, December 06, 2011 @ 02:12 PM
Merchant Cash Advance

With the current climate in the lending industry it has become exceedingly difficult for small to medium sized businesses to qualify for a business loan. That being the case what other lending options are available to businesses to raise the cash necessary for business growth?

A merchant cash advance could be the answer.

A merchant cash advance is a lending instrument that allows your business to take advantage of future credit card receivables for an instant infusion of cash. The qualification process is quick and easy and your business can usually receive an advance in as little as 3 days.

How does it work?

Our underwriting department will analyze your merchant account statements to determine the cash advance amount you qualify for. The maximum cash advance amount available is $250,000. Once an advance amount has been identified that amount will be wired into your business account.  At that point a pre-determined percentage amount will be held back from each subsequent settlement for a pre-determined amount of time. The percentage amount held will be applied to the repayment of the advance. A percentage of future credit cards receivables is used to ensure that a hardship is not imposed on the business as would be the case with a set dollar amount. The advance is automatically paid back so there is no action needed by the business owner or staff.

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Qualification requirements

  • 500 Fico
  • $5000 per month minimum processing
  • Average retail ticket less than $600
  • 15 batches per month
  • Bankruptcies discharged for at least 1 year

Tags: Merchant Cash Advance, Credit Card Factoring, Cash Advance

Can I use someone else's merchant account to do my transactions?

Posted by Alex Neir on Fri, January 28, 2011 @ 03:02 PM
Someone Else's Merchant Account

Can I use someone else's merchant account to do my transactions?

Unfortunately, this is not aloud. This practice is referred to as credit card laundering and also credit card factoring.

This practice is in direct violation of the contract the merchant has established with the processor for the purpose of running credit card transactions.

When a merchant account is set up there are very specific underwriting guidelines that must be met in order to secure the account. These guidelines include (amongst other requirements) a detailed business description, product and service description, business financial documentation and applicant credit check. All of the requirements are specific to the business and owners that have opened the account.

So, once approved, only that business has the privilege of accepting payment via the account. Further more that business is only aloud to accept payments in the form described on the application. For example, if a retail merchant decides to sell merchandise on a website, they would be required to open another merchant account. The original account was approved for retail card present transactions only.

If you run a transaction on someone else’s merchant account you are jeopardizing that merchants contract, which could result in their account being terminated and their business name included on the Terminated Merchant File (TMF). Once a business has been added to the TMF it is extremely difficult to be removed. Additionally, securing a new merchant account while included on the TMF is next to impossible.

If you would like more information on an affordable merchant account please contact Alex Neir at (800)917-8026 or visit get started with Maxx Merchants Processing-Get Started With Maxx Merchants Procesing.

Tags: Credit Card Factoring, Credit Card Laundering, Someone Else's Merchant Account