FAQs

how does the hope credit work

Below is a list of frequently asked questions about Strategic Nationwide Funding, and Merchant and Business Cash Advances:

1. What is a Merchant Cash Advance or Business Cash Advance and how can it help my business?

Many small business owners are unable to obtain traditional bank loans because they have insufficient credit or collateral. As a result, more and more have been turning to Merchant Cash Advances and Business Cash Advances for infusions of working capital or other immediate cash needs.

We advances cash to business that accept credit cards, and our payback is based on anticipated future credit card sales, offering an alternative to the traditional bank loan. With a Merchant Cash Advance – which is not a loan – businesses receive a lump sum in return for a percentage of their future credit card sales.

We advances cash to businesses that do not accept credit cards, and our payback is based on anticipated future sales, offering an alternative to the traditional bank loan. With a Business Cash Advance – which is not a loan – businesses receive a lump sum in return for a percentage of their future overall sales.

First of all, qualifying for either is far easier than a bank loan. No checks are ever written and repayment is based on a percentage of future sales so there are no late fees, hidden fees or interest rates. In addition, there are no personal guarantees, no closing costs or loss in equity or need to post collateral to secure the advance.

Once you submit an application, a funding consultant will determine how much money you qualify for based on your average monthly MasterCard and VISA credit card sales as well as overall cash volume. At this time, you’ll be asked for three months of credit card

and bank statements, a copy of your lease and a tax return or financial statement depending on the size of the advance. These documents will be given to our underwriting department for approval. You will then receive a contract spelling out the specifics of the agreement. If you agree, the funds will be deposited in your bank account as early as the next business day. In return, we will collect a small, agreed upon percentage of your daily credit card or cash sales until the terms of the agreement are satisfied.

Most businesses will qualify. Generally, all you need to show is that you’ve been in business for over a year and process a minimum of $5,000 a month in sales.

Pre-approval usually takes place within 24 hours. Funding takes two to three business days depending on the amount of the transaction.

Once the agreement is signed, the money will be received as early as the next business day.

The average size of our cash advance is about $25,000, although cash advances range from $5,000 to $250,000.

You are free to use the money in any way you feel is best for your business. Many of our customers use it for expansion, advertising, new equipment or increased (or seasonal) inventory. It is also frequently used for unforeseen emergencies or to buy out a partner or acquire a new location.

No, although that is an option for Merchant Cash Advances. You may want to change to our preferred credit card processors as they will meet or beat your current processing rates. We have alternative options should you not want to switch. In a business Cash Advance there is no credit card processor to speak of.

The credit card processor we use will either match or beat your current rates.

Source: www.snffunding.com

Category: Credit

Similar articles: