Merchant Cash Advances

Have a flat percentage of your business’s credit and debit card sales(batch) automatically remitted daily with our merchant cash advances. At Rafter J Funding you receive a quick cash advance that is offered for any merchant.

Merchant Cash Advance

Receive funds for your business with in (24-hours to 72-Hours in most most cases) with our merchant cash advances (MCA). With a MCA, your business is provided funds in exchange for a small fixed percentage of your credit card income(batch). This is done thru ACH from your DDA account or directly from the processor that clears and settles the credit card payment.
In regards to your remittances, they are drawn daily Monday thru Friday with a fixed percentage from your batch until your obligation has been met. Lastly, a MCA isn’t a loan; it is a sale of a portion of future credit/debit card sales at a discounted rate.

How to Qualify

It is simple to qualify for an MCA. Our basic requirements include:
• Owned Business for at Least 12 Months
• Have at Least 1 Year Remaining on Business Lease
• Minimum Fico Score 500 • Process a Minimum of $3,500 in Monthly Credit Card Sales
• Merchant Has No Unresolved Bankruptcies

Advantages of an MCA

Benefit highly with our MCAs. The most important benefit of a MCA is that it offers you more flexibility to manage your cash flow. In other words, payments to the merchant cash advance company will fluctuate directly with your sales volumes, giving you the stress-free ability to oversee your money, particularly during a slow season. Once you have delivered the total amount of future credit card receipts, the process automatically stops.
Other Benefits Include:
• A Stellar Credit History Is Not Required to Qualify
• No Checks to Write
• Remit Less on Slow Days
• Remittances Are Made through Processing Regular Credit Card Sales • No Personal Collateral Is Needed
• No Set Maturity Date or Pre-Set Payment Amount
• Quicker & Easier Than a Traditional Loan
• Range from $3,500 to $500,000

How a Merchant Cash Advance Works

Merchant Cash Advances is a method of obtaining capital quickly for your business based on your monthly credit card sales.
Here’s how merchant financing works:
•   Rafter J Funding Services and its Partners will give a business cash advance up to one full month or more of your average credit card receivables, by
••••purchasing a percentage of your future credit sales at a discounted rate.
•   There are no personal guarantees and there is no set time frame on the payback of the advance.
The cash advance may be used for:
•   Additional working capital
•   Opening new locations
•   Renovation or remolding of your business
•   Purchasing new equipment
•   Advertising and marketing programs
•   Additional inventory purchases
•   Funding payroll
•   Emergencies
•   Cash flow needs for established seasonal businesses

Advantages of using a Merchant Cash Advance

•   No fixed payments
•   Fast turnaround time
•   High approval rate
•   No collateral required
•   No financial statements or tax returns
•   Ongoing source of capital that is renewable as the advance is paid down
•   Growth capital for your business
•   Unlike a business loan, there are no cumbersome or costly paperwork for application

Information on Business/Merchant Cash Advance
Here Are the Details

•   Rafter J Funding Services and its Agents will provide you with a business/merchant cash advance of up to $500,000 based on the average of your past 12 ••••months of credit card receivables.
•   In essence, Rafter J Funding Services and its Agents buys your future receivables at an agreed-upon discounted rate.
•    Business/Merchant Cash Advance is paid back through your future credit cards sales on a percentage basis – not on a fixed amount.
•   Therefore, you pay proportionately less in slower months. The payback is completely based on your daily sales. In other words, if you take in nothing for the ••••day, Rafter J Funding Services and its Agents receives nothing.
•   On average, most merchants take about 7-10 months to pay down their advance. However, the payback period is not fixed. It is solely based on your on current credit card receivables.
•   When the advance is paid off, the funds will automatically stop going to Rafter J Funding Services and its Agents. However, you may renew the ••••business/merchant cash advance when the advance is paid down to 50%, which many merchants do. Rafter J Funding Services and its Agents will often       renew your business/merchant cash advance before the pay down cycle is complete.
•   You will receive monthly statements to track the status of your merchant/business cash advance. It can also be viewed online.

Call Us Now! (325) 340-3366 or click here to download our convenient application form. Business/Merchant Cash Advances are not loans. It simply purchases future credit card receivables at a discounted rate. Therefore, there is no interest rate, no collateral, and no set time frame for the payback.

Business/Merchant Cash Advance Requirements

What do I need in order to receive funds?
1.   Fill out our simple application. It will take less than 5 minutes.
2.   Provide Rafter J Funding Services and its Agents with your past 4 months of credit card statements and the past 4 months of bank statements
3.   Provide Rafter J Funding Services and its Agents with a copy of your driver’s license(s) and a voided business check along with any other required   documents upon approval.
Once the completed application and additional information is received, we will be able to review it and give you an offer within 2 to 24 hours.
After all the paper work is in order, you can be funded normally within 1 to 3 business days.
•    No personal guarantees
•   No financial statements
•   No collateral
•   No fixed payments
Business/Merchant Cash Advance – an easy and risk-free way to fund your business needs.

Business/Cash Flow Advance

A cash flow advance offered by the alternative finance industry is similar to an MCA but is based on a merchant’s total revenue and not just credit card sales.

In a typical transaction, a funder advances a lump sum payment in exchange for a percentage of a merchant’s total revenue or gross bank deposits. Like a traditional MCA, there is no fixed scheduled payment amount or term. Each day or week the funder determines the total deposits into the merchant’s ban account and a percentage of the gross deposits is electronically debited by the funder. This continues until the total amount of the purchased revenue has been paid.

Case Study: How a Merchant Cash Advance Worked in a Pinch
June 11, 2012
From the May 2012 issue of Entrepreneur
Michelle Goodman

Between His Own $700,000 investment and $500,000 from his partners, Arturo Calderon thought he had the financing for his new restaurant in the bag. But construction costs of the 3,000-square-foot Yucatan Taco Stand in The Woodlands, Texas, ran $80,000 over budget, sapping much of the operating cash he had set aside for the September 2011 opening. Although business was brisk from the start, operating without that $80,000 was tight. So one month after opening, Calderon applied for a cash advance from a company providing alternative funding, which works with businesses doing a high volume of credit and debit card transactions in exchange for a percentage of future sales.

Considerably more expensive than a bank loan (Calderon’s markup was 20 percent), merchant cash advances don’t have a fixed repayment date. They’re also fast–within 48 hours of applying, Calderon had the $80,000 he requested in hand. We talked to him about the road to quick cash.

Borrower Beware

Dozens of financial organizations offer merchant cash advances, without much regulation. Before taking their money, take these precautions: Do the due diligence. Investigate provider’s online, check with the Better Business Bureau and talk to other entrepreneurs who have borrowed from them. Crunch the numbers. Track sales for at least six months to ensure you’re earning enough to repay the debt comfortably. Be wary of extra fees. Application and funding fees are not the norm. Avoid providers who tack on these extra charges.

Why did you choose this route?

We needed that money to operate. I didn’t want to leave the business without any money in the bank, and I didn’t want to go back to my investors and say, “The numbers are really tight. Put in some more money.” And I didn’t want to put in more money myself, because my investors would be diluted.

A few weeks after we opened, I had a bank that was going to lend me the $80,000, but it was going to take four to five weeks, and I didn’t have that time. I needed the money right away, because I didn’t want to be late on any payments. And the alternative funding company said, “I can give you the money tomorrow.” It’s expensive, but it made sense.

What did the application process involve?

I showed them we were doing almost $40,000 a week in sales in the first month, so it was a really good business. They checked my credit. And I had to show them my company agreement.

How does the repayment process work?

They gave me $80,000 in cash, and I have to pay them back $100,000. They take 12 percent of my MasterCard, Visa and Discover Card sales every day until it’s paid off, and I receive what’s left. I’m a financial guy, and I know this is a very high price. But you don’t feel it, because every single day you’re paying your debt. It’s not like you have to pay a really high set amount every month for a year. So this worked for me. It makes sense when you have this volume of sales.

What advice do you have for those interested in a merchant cash advance?

You’d better be sure of the numbers you’re making before going into this kind of financial deal, because it can kill you very easily. If you’re not doing the sales that you need to, you’re not going to make it. And you need to pay these guys back within a year–ideally, in six to eight months–because these guys are the first to get paid, and then you start paying your bills. So if you’re not doing well, you can lose your business.