1. What is a Business Cash Advance, also referred to as Merchant Cash Advance, and how can it help my business?
First and foremost BizLender is not a bank and our funding differs from that of a bank. An advance is an amount of money funded on future receivables. BizLender funds short term non-secured advances to business owners against their anticipated credit card or merchant deposits. Business Cash Advances and Merchant Cash Advances are used when a business needs liquidity and is unable to get a line of credit or traditional bank loan.
2. What type of funding does BizLender offer to merchants?
BizLender is able to secure the following three types of alternative funding for businesses:
a. Merchant Cash Advance
b. Business Cash Advance
c. Small Business Loan
3. What are the rates of payback with BizLender’s cash advances?
The amount of payback is not calculated using interest rates or APR. The amount of payback is based on a flat factor rate, which more or less varies between 1.20% and 1.50%. In essence that means that the amount of payback is between twenty and fifty cents on the dollar. Factor rates are determined by the underwriter and are based on the evaluation of your application.
4. What is a Business Cash Advance?
A Business Cash Advance is a type of funding where a daily payment is withdrawn from the business’ bank account every business day, Monday through Friday, until the debt is satisfied. A Business Cash Advance is an alternative method for a business to secure funding when traditional methods are either unavailable or take too long.
5. What is a Merchant Cash Advance?
A Merchant Cash Advance is structured by way of scheduling to withdraw a percentage of every credit card batch run by your business until the advance is paid off. This is only offered to merchants that process credit cards in higher amounts, and is also referred to as a credit card split. How often you batch out is how many times the batch is split.
6. What exactly is a Small Business Loan?
A small business loan is similar to the BCA in that a daily payment is withdrawn from the business’ bank account every business day, Monday through Friday for a set period of time. A factor rate is determined and used to calculate the amount of payback. With standard business loans you would have to put up collateral unlike with BizLender’s small business loans where no collateral is required.
7. Is BizLender’s small business funding like a typical bank loan?
BizLender’s small business funding differs from a typical bank loan in that we, unlike a bank, do not require you to go through the hassle of putting up collateral for your loan, We only ask that you sign a personal guarantee that in essences states that you are not committing fraud.
8. Does my business qualify for a Business Cash Advance, Merchant Cash Advance, or Small Business Loan?
To apply, your business should have the characteristics listed below. If you are unsure, do not hesitate to apply or call (855) 388-1113 to discuss your options with an account manager.
a. 3 Months in business and operation.
b. Approximately $100,000.00 in annual sales.
c. Approximately $8,500.00 per month in sales.
d. A business bank account.
9. Can I apply for a Business Cash Advance or Small Business Loan even if I have bad credit?
Although the underwriters do look at your credit, it is not the sole factor used to determine an approval or denial. BizLender has obtained approvals for merchants whose credit scores were in the low 400’s. We pride ourselves on getting a large number of our clients funded no matter what their credit score is.
10. After applying for small business funding, how long does it take before I know if I am approved?
Bizlender can approve you for a Business Cash Advance in as little as 24 hours after we receive your application and required documents.
11. How long does the Merchant Cash Advance process take before I get capital for my business?
You company can be funded in as little as one day after applying.
12. How can I speed up the application process so that I can get my business funded as quickly as possible?
BizLender prides itself on being the Fastest To Fund. That is why we are always looking for new methods and technology to expedite requests. To speed up the process we recommend that you gather the required documents for underwriting right away. They are:
a. A completed, signed and dated BizLender application.
b. Minimum 3 months of businesss bank statements.*
c. Minimum 3 month credit card statements (If you process credit cards).*
d. A copy of your driver’s license.
e. A copy of a voided business check.
*Seasonal businesses should send in 12 months statements.
13. Can I pay off the Merchant Cash Advance or Business Cash Advance early?
You are always welcome to pay off your advance early. However, there is no benefit in doing so. Whether you pay the advance off the day after you are funded or when the last payment is withdrawn, your payback amount will be exactly the same as stipulated in your contract.
14. Are many merchants turned down?
Regrettably, we are unable to find funding for every single applicant, However, BizLender does stand proud in the fact that we have a low margin of declined applications.
15. How do I get started?
Call today to speak with an account manager!