Merchant Funding Programs

Flexible Funding Solutions

We are a privately funded advance company capable of funding small to medium size businesses from $3,000.00 to $4,000,000.00. We concentrate our niche on merchants who do not approve for conventional financing. In today’s world even credit worthy businesses can’t find the funds they’re looking for forcing them to seek alternative methods for financing inventory, remodeling, upgrades, debt consolidation, emergencies and working capital. Whatever their needs may be, we offer financing solutions uniquely tailored to fit the needs of growing businesses.

While we have national reach we are a boutique firm that forges individual relationships with each of our clients. Our size permits us to be more innovative which in return allows us to move faster than larger institutions.

Although each program is modified for each of our clients, we use the foundation of three programs Traditional bank, Receivable Funding and Flex Funds - our version of a business line of credit.

Traditional Bank Product:

This program is based off a company’s total gross monthly volume. It is set off interest rates ranging from 6.5% -18%. The interest is found based off the clients industry, term of the loan, as well as their FICO score (minimum FICO for Bank Only is 620). This program is paid back one of three ways.
  •   Depending on the integrity and security of the industry a risky merchant would be ACHed a fixed daily payment out of their business bank account Monday-Fridays.
  •   If they have decent credit but there industry is still shaky they may be ACHed a fixed payment every Friday.
  •   If they are stellar with performance and have a FICO score of 700+ it can be one monthly payment.

Terms stretch from 9 months, 14 months, and 22 months and in some cases up to three years.

Receivable Financing (Untraditional Cash Advance)

Receivable financing is structured exactly the way a Merchant Cash Advance is. However, the difference between us and our Advance competitors is incomparable.

Because we are privately funded our cost of money is much less than larger institutions that have borrowed from Hedge Funds. It’s a simple model- Our Costs are Less so we can Sell For Less. It is very rare we lose a client to a competitor- in fact we love when a merchant is working with a competitor because we know they can’t compete with us.

Receivable Financing is not a loan. It is an Advance on a merchant future credit card sales based off a factor rate (not interest) and there FICO score does not matter (we have lent to individuals with 430 credit scores). We will fund them up to 150% or more of their monthly credit card volume. It is cash in the business owner’s pocket which they can use for any purpose. This is a zero personal liability advance and can fund within three business days of submission.

We secure our money through their Visa/Master Card sales only. We attach a split on their credit card processing company making a certain agreed upon percentage come out of each sale. The purpose of this mythology of payment is to alleviate the pressures of a bank looking over their shoulder demanding a check each month- no matter how well the merchant performs.

  • Example: Our underwriting has determined that “Client A” can afford a 12% split off their  Visa and Master Card sales. The merchant then sells a soda for $1.00 and the client pays using a credit card. $0.88 would go into the merchant’s account and the $0.12 difference would automatically go into Trust Capital’s Account.

This way the merchant pays us back based on how well they do. If they do really well one month they pay us back a little quicker, if they do really slow one month they end up paying us back over a longer period of time.

These advanced terms range from 4 months to 14 months depending on each merchant’s individual deal. However, we are giving them “Tomorrow’s money today”.

Our Flex Funding

Aside from our cost of money being substantially cheaper than our competitors and generally stretching our terms over a longer period of time, making the “split percentage” come down lower, alleviating a cash flow issue, our Flex Fund program really differentiates us from the rest of the pack.

If a merchant is performing up to par they may be eligible for Flex Funds –our version of a line of credit.

We would approve a merchant for a set dollar amount and once they have paid the factor off (cost) they would then be eligible for more money up to the funded amount.

  • Example: Client Borrows $30,000.00 @ a 1.20 factor (total pay back 30,000 X 1.20= $36,000.00)

Once he pays 5,000 below the funded amount making his balance $25,000.00 they could then be eligible for additional funds up to $30,000.00. Our competitors generally make clients pay down to more than 60% of their balance before they consider a “re-up”.

Even if they do a re-up they would then issue the client an additional $30,000.00 dollar advance but make them pay off the difference of the old balance and letting them keep the net proceeds.

Now they made a deal turn in 4 months that should have turned in 6 (sounds great for the funding company but bad for the client). We rarely if ever do this. This way the clients have the knowledge that they can come back to us even with a high balance and get additional monies if something comes up.

Our Funding Advantages:

  • Funding Based on Revenue - Not Credit Score   * No Personal Liability   * Fast Cash
  • Less Paper Work    * Individual Relationships           * Short Term Debt             * Customized Terms

Merchant Funding is useful for:

  • Additional working capital
  • Equipment purchases
  • Advertising
  • Purchasing additional inventory
  • Cash flow for seasonal businesses
  • Renovating or remodeling
  • Opening new locations
  • Buying out business partners
  • Funding payroll
  • Emergencies

Typical Merchant Profile:

  • Small-to-medium size businesses / merchants
  • Limited operating history
  • Undercapitalized
  • Insufficient collateral
  • Weak financial statements and/or tax return
  • Lack of professional resources (i.e. accountants) to obtain a conventional loan

This is just a short list of the types of Merchants that would benefit:

  • Restaurants—all sectors
  • Bars
  • Hotel/Motel
  • B&Bs
  • Automotive—all sectors including cabs and limo companies
  • Florists
  • Garden Shops
  • Liquor and Wine Shops
  • Dry Cleaners and Laundromats
  • Gift Shops
  • Spas, Beauty Salons, Nail Studios
  • Bicycle and Motor Bike Shops
  • Convenience Stores
  • Pet Grooming and Supplies
  • Etc