merchant cash advance & small business loan program ... · merchant cash advance & small...
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Merchant Cash Advance & Small Business Loan Program
Changing the converstion
Mind Blowing Reality:
An independent merchant survey reported that 50% of the respondents would be willing to switch merchant service providers
to gain access to capital.
RapidAdvance Quick Facts
Bethesda, MDHEADQUARTERS
2005FOUNDED
RapidAdvance is a leading provider of financing solutions to small and medium sized businesses in the U.S. COMPANY
Rockbridge Growth EquityOWNERSHIP
>$1B deployed to deserving businessesFUNDINGS
PRODUCTSRapid offers two financing solutions, Merchant Cash Advance (“MCA”) and Small Business Loans (“SBL”),
165EMPLOYEES
Member of the Quicken Loans Family of Companies
Note: This slide only represents a small sample of the full Family of Companies
What we do
We support electronic payment processors, merchant acquirers,
ISOs and their merchants by providing easy access to capital
through an expanded suite of funding solutions.
Current Climate for Small Business Financing
• Addressable market - est 9 million U.S. small businesses
• Pent up demand for capital
• Approximately 37% will apply for financing this year
• Of applicants, only about 40% are approved
• Result: 60% are denied or only partially funded• 2 in 5 said denial limited their expansion
Source: Small Business Credit Survey, Federal Reserve Bank of New York, US Census Bureau
Typical Customer Challenges
Unexpected opportunity
Cash flow timing
Expansion or growth
Inventory build-up
Customer has immediate funding needs:
• Timing is everything – usually need turnaround within 7 days• Majority of applicants want < 100K • Minimal paperwork desired• Last few years have left them discouraged about getting credit• Harvard Business School Report notes small business loans on bank balance
sheets are down 20% since the financial crisis
Targeted Merchants
Healthcare Chiropractors 8041 Retail cont’dDentists 8021 Pharmacies 5912Optometrists 8042 Grocery StoresPhysicians 8043 Toys/Hobby Shop 5945Veterinarians 742 Pet Store 5945
LodgingHotel/Motel 7011
Restaurant Drinking Places 5813Quick Service Restaurant 5814 Service Barber Shops 7241Restaurant 5812 Dry Cleaning/Laundry 7210Bakeries 5461 Hair/Nail/Skin Care 7231
Retail Party Supply Stores 5943 Health Spa 7298Bicycle Shops 5940 Beauty Shops 7230Dry Cleaners 7210 Automotive Repair 7500Candy Stores 5441Children's Shoes 5661Children's Clothing 5641Cosmetics/Perfumes 5977Men & Women Clothing 5691Family Clothing 5651Food/Fruit/Gourmet 5499Footwear 5139Hardware 5251Juniors Clothing 5641Liquor Stores 5921Meat/Seafood 5421
` Optical Center 8044
Lending Solutions
HOW? LESS RESTRICTIVE LENDING GUIDELINES
Financing amounts of $5,000 to $1,000,000 Streamlined process allows for funding in 3 to 5 days Terms of 3 to 18 months Renewals paid at 100% Minimal paperwork required Minimum FICO scores of 500 Bankruptcy acceptable if discharged for at least 1 year Tax Liens acceptable with payment plan in good standing
RapidAdvance provides a fast, frictionless and easy financing alternative for businesses that have an immediate need for capital, may not meet traditional financing guidelines, or have no availability on an existing
facility.
RapidAdvance Financing Products
Multiple products allows the business advisor to match the business need with the appropriate financing solution
Merchant Cash Advance
Small Business Loan
Healthcare Advance
MCA is a purchase of a merchant’s future credit card receipts. It is not a loan.
Creative commercial financing: No fixed payments Payback only received through a small percentage of future credit card sales Typical split % is 12% - 20% of merchant’s daily batches Transactions up to $500,000 funded in as little as 3 days! Rule of thumb: funds 1x Visa/MasterCard monthly volume
Minimum MCA Requirements: Minimum time in business: 1 year $5,000 per month in processing volume
Merchant Cash Advance (MCA)
Ideal for business owners seeking fixed, predictable payments
Transactions up to $1MM funded in as little as 3 days!
Repayment is through an ACH of merchant’s bank account
Rule of thumb: funds up to 90% of monthly gross revenue
Minimum Loan Requirements: Minimum time in business: 2 years Monthly revenue $10,000
Small Business Loan
HCA is a purchase of a merchant’s future health insurance receivables & credit card receipts.
Creative financing for healthcare professionals: No fixed payments Transactions up to $500,000 funded in as little as 3 days! Payback only received through future credit card & insurance receivables Re-payment is made via a “lockbox” Rule of thumb: funds up to 1x monthly insurance receivables & Visa/MasterCard
volume
HCA Funding Criteria: Minimum time in business: 1 year Minimum monthly insurance deposits $10,000
Healthcare Advance
Application to Funding in 3-5 Days
Merchant Funded
Confirmatory Underwriting
Merchant Selects Quote / Signs Contract
Quotes Presented to Merchant
Pre-Qual Submission
UNDERWRITING & FUNDING
Last 3 Months’ Business Bank
Statements & CC Processing Statements
Signed 1-page Application
SUBMISSION
Change the Conversation
Accessing capital when you need it is one of the most challenging & frustrating responsibilities of a business owner today.
- If you had access to an additional $10k, $15k, $20k, $25k within the next 3 days could you find an area in your business to use it?
- If you received $10k in your account on Thursday where would you use that in your business?
- Preparing for your busy season takes capital. What would you do with an extra $15k?
- What opportunities would you take advantage of if you had the capital?
- In a few minutes we can determine how much you could qualify for. What is your average monthly Visa & MasterCard credit card processing volume?
Working Capital helps you Sell
Change the conversation to easy
Strengthen customer relationships & increase retention
Great tool to WIN back lost customers
Create “stickiness”
Protect residuals
Differentiate yourself
Build loyalty and referrals
- 75% of merchants borrow a second round of funding
- average merchant borrows 3 times over 1.5 years
Increase merchant ACTIVATIONS and create a NEW REVENUE STREAM
Working Capital Helps
Become a trusted advisor Be the go to person
Provide merchants unrestricted use of funds Offer flexibility
Provide merchants access to capital when traditional lenders say “NO”
Merchants won’t begin to search for alternatives
Protect your future, build goodwill and loyalty Residual income protected
The RapidAdvance Difference
Client experience is our Top Priority!
o We make accessing capital EASY- FAST- FRICTIONLESS- RELIABLE
o New & Meaningful Revenue Stream for the ISO/ISA
o RA will close deals
o 75% of clients borrow again
o Avg. client completes 3 transactions over a 1.5 years
o Transactions range from $5,000 - $1,000,000
o Same day approvals!
o Merchants funded in 3-5 days – start to finish
o Terms extend from 3 months – 18 months (product specific)
o A full range of products
The Formula
Capital = Stickiness = Retention = Residual Protection
Value-Added Products
Terminals/POS
Merchant Services
Value-Added Products
Terminals/POS
Merchant Services
Your ISO Today
Your ISO Rival ISOs
Your ISOPowered by RapidAdvance
Your ISO Rival ISOs
RapidAdvance National Partners
Office Depot offers financing to its customers through a co-branding partnership, marketed by Office Depot as“Office Depot Business Financing, Powered by RapidAdvance.”
ENACT Systems & RapidAdvance partnered to offer ENACT’s energy project contractors “Quick Working Capital”. ENACT is a national leader of providing solar energy alternatives.
National Small Business Association (NSBA) partners with RapidAdvance to provide capital, education and business growth opportunities to all NSBA members.
National Broadcast Media
TVRadio
