Embed Size (px)
DESCRIPTION
Overview of why regional banks & small- to large-finance companies choose to partner with American Finance Solutions as their trusted source for referring their small business clientele
Citation preview
Introduction & ProceduresOverview
proud member of:
About AFS
• Licensed Lender• Bonded, Insured & Regulated• Ability To Finance In All 50 States• Never Any Upfront Fees Or Points
• Industry-Leading Customer Service
• Proven 8+ Year Track Record• Custom Pricing For Each Client• Highest Renewal Rate In The Industry• Accredited BBB With “A” Rating
• Respected Members Of:• ETA (Electronic Transaction Association)• IFA (International Factoring Association)• NAMAA (North American Merchant Advance)
• Full Range Of Program Options• Premium Pricing For Established Businesses• Starter Advance For New Businesses• Approvals For Almost All Business Types• Loan Option For Low Transaction Clients
Service. Value. Integrity.
Since 2006, American Finance Solutions built a successful reputation on three core values that reflect in every
aspect of our organization:
• Service We deliver results to our clients and partners while
continually striving to exceed expectations.
• Value We make it easy for our partners to do business with us and
provide competitive programs.
• IntegrityWe partner with people that share our high ethical standards
– this is the cornerstone of AFS.
What is a Merchant Cash Advance?
A merchant cash advance is a finance product allowing small and medium-sized businesses quick access to working capital in exchange for an agreed upon portion of their future credit card receivables.
Alternative Financing.
How Does a Merchant Cash Advance Work?
Based on minimal documentation, AFS can determine how much working capital can be funded to a business.
By projecting upcoming sales, we are able to establish an easy and flexible program for the merchant to repay us through an agreed-upon percentage of their future credit card sales.
Leverage Future Sales to Acquire Funding Today.
Why Sell AFS Merchant Cash Advance?
• AFS Puts The Merchant First• Custom Pricing Offers For Each Client• Multiple Repayment Options• Deliver An Exact Solution For Your Client
• Fast Funding – 5 Days Or Less• Simple Application Process• Approvals Within 24 Hours• Minimal Documentation Required
• Simple Qualification• High Approval Rate• Minimal Documentation• Approvals Up To $200,000 Per Location
• Easy To Do Business With• Fast Decisions Upon Application• Online Portal To Track Entire Process• Trained Staff To Assist Every Step
Land More Accounts & Focus On Increasing Value.
What can the funds be used for?
While most Banking Institutions have restrictions on the use of funds,
AFS does not. Some popular uses include:
• Inventory• Line Of Credit• Working Capital• Remodeling or Expansion• Marketing• Purchase Another Location• Payroll or Taxes• Purchase New Equipment• Emergencies Use The Funds To Grow Your Business.
Businesses Using Cash Advance
• Restaurants & Bars• Retail Storefronts• Franchise Businesses• Grocery & Convenience Stores• Doctors, Dentists, Medical Professionals• Hotels & Motels• Automotive Repair Shops• Hair & Nail Salons• Day Spas Ideal Industries Using Cash
Advance.
Factor Rates
All of the products that AFS offers are approved using risk-based pricing.
Once the funding risk is assessed, the program is given a factor rate to determine the payback amount of the advance or loan.
The factor rate has no prepayment penalty and does not increase like an interest rate.
Approved Funding Amount: $10,000
Factor Rate: 1.25
Payback Amount (Purchased Price): $12,500
Cash Advance Collection Methods
Merchant Cash Advance offers flexible payment options not typically available through standard bank lending.
There are three different ways that a merchant cash advance can be paid back to AFS.
The three collection methods available are:
1) Split Processing2) Fixed ACH Payments3) Lockbox/Trust Account Deposits
More Options. More Opportunities.
Split Processing
Split Processing is a payback method offered to businesses that process credit card sales transactions on a frequent basis.
It is easy, seamless and does not involve any hassle to the merchant.
AFS
MerchantCredit Card
Processor
How It Works
$1,000
$900
$100
This example represents a 10% Withholding
Fixed ACH
Fixed ACH payments are a consistent collection method that does not directly discount or reduce the credit card sales from the merchant. It is simply a set payment deducted from the business’ bank account.
This method is usually ideal for business owners that:
• Don’t Process Many C/C Sales• Have More Cash/Check Sales• Looking to Have Set Payments• All Loan Programs
AFS
MerchantCredit Card
Processor
How It Works
$1,000
$1,000
$100
Lockbox/Trust Account
Some credit card processing companies are not approved split partners with AFS.
If a merchant cannot, or refuses to, switch their processing account (and does not qualify for a Fixed ACH payment) the Lockbox/Trust Account payback is another possible collection method.
The setup process can take longer to get funding to the merchant, cause delays in receivables to the merchant and incorporate additional fees.
However, it can prove to be a solution when no other option is available.
AFS
MerchantCredit Card
Processor
How It Works
$1,000
$1,000
$100
Lockbox
$900
Merchant Cash Advance Program
• Qualify For $5,000 To $200,000 For A Single Location
• Will Consider Higher Amounts;
Up to $500,000 For Multiple Locations
• Customized Pricing Options With Payback Terms Up to 12
Months
• Split Collection, Fixed ACH & Lockbox Repayment Options
Qualifications:
No Minimum FICO
Judgments/Liens Less Than $100K
4 months In Business
Not more than 30 days past due on rent/mortgage
No open BK or BK Proceedings
Our Most Popular Finance Product.
Loan Program
• Qualify For $5,000 To $200,000 For A Single Location
• No Credit Card Sales Required – Ideal for Doctors, Dentists, etc.
• Customized Pricing Options With Payback Terms Up to 12 Months
• Fixed ACH Repayment Only
Qualifications:
Minimum 550 FICO
Judgments/Liens Less Than $100K
12 months in Business
Not more than 30 days past due on rent/mortgage
No open BK or BK Proceedings
No Credit Card Sales Required.
Premium ProgramOptions
Well-established business owners may qualify for lower factor rates, increased funding amounts and more ideal terms.
Premium Approvals are given on both programs, pending qualification and Underwriting Approval.
Qualifications:
Minimum 600 FICO for the MCA Program
Minimum 650 FICO for the Loan Program
24 months in business
Not more than 30 days past due on rent/mortgage
No open BK or BK Proceedings
Better Rates. Higher Funding Amounts.
Fast Cash Program
• Qualify For $5,000 To $20,000
(50% of Avg. Credit Card Processing)
• Absolutely No Credit Check Required
• Same Documentation Needed as Merchant Cash Advance Product
• Short-Term Programs
(Typically Under 4 Months)
• Split Collection Repayment Only
Qualifications:
Must Process Credit Cards With Approved AFS
Processor
4 months in Business
Not more than 30 days past due on rent/mortgage
No open BK or BK Proceedings
No Credit Check. Fast Turnaround Time.
What Do I Need to Submit a Deal to AFS?
Merchant Cash Advance &
Fast Cash Programs
• One-Page Application
Completed & Signed By The Merchant
• Most Recent 3 Months Of Credit Card Processing Statements (12 For Seasonal/Restricted)
• Most Recent 2 months Of Business Bank Statements
Minimal Documentation Needed.
Loan Program
• One-Page Application
Completed & Signed By The Merchant
• Most Recent 3 Months Of Business Bank Statements (12 For Seasonal/Restricted)
What Do I Need to Complete A File?
• Proof Of Ownership Articles Of Incorporation K-1 Business License
• Legible Drivers License/ID (All Owners)• Voided Check for Main Operating Account• Financials for Requests on Larger Deals
Current Financials (P&L And Balance Sheet), Or
Most Recent Tax Return Tax Guard Service May Also Be Used
There are very few documents
needed to complete a file for AFS.
Less Than Require By Major Banks.
Submission Underwriting Verification Funding
• Merchant Contact & Paperwork Gathering
• Submissions Are Sent To Admin Via Email To [email protected]
• Client Entered Into Agent’s Online Portal To Track Remainder Of Process
• Account Manager Provides Preliminary Contract Terms
• File Submitted to UW for Final Approval & Stipulations List
• Once Merchant Agrees To A Quote, Sales Agent Requests Contracts From Account Manager
• Return Of Signed Contracts & Any Requested Stipulations
• Merchant Receives Welcome Call
• Merchant Notified Of 3rd-Party Site Inspection (If Required)
• Landlord/Mortgage Verification On Business Location
• Confirmation That Repayment Method Is Active
• Recorded Verification Call Completed
• Funding Occurs After All Verification Processes Have Been Completed • Merchant Receives Funds Via Wire
• Merchant Receives Email & Customer Service Call With Client Portal Log-In Details
• Customer Service Follow Up Every 30 Days To Ensure Maximum Client Retention
Simple Workflow.
What Can Cause a Delay in Funding?
Some Factors That Can Possibly Delay Funding Include:
• Merchant Not Available for Welcome Call or
Recorded Verification Call
• Information Provided is Incomplete
• Landlord is Unresponsive or Uncooperative
• Missing UW Stipulation Documents
• Receipt of Payoff Information from a Competitor
Some Factors That Can Disqualify a Client for Funding While in Process:
• Past Due on Rent/Mortgage More Than 30 Days
• In Collections with a Competitor
• False Representation by the Merchant
What Can Disqualify a Deal From Funding?
92% + of Contracts Fund Once in Verifications
