Merchant Cash Advance
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Merchant Cash AdvanceFrontline Processing is committed to helping your retail business grow. 61% of small business owners report access to capital is either quite or extremely challenging. We understand that your business needs cash and we have a solution. Merchant cash advances are a quick, safe, and cash flow friendly solution for your business.
Common Uses• Buying new equipment
• Expanding your business
• Rent Payment
• Hiring new employees
Advantages of a Cash Advance• Easy application process
• High approval rate
• Bad credit okay
• Simple repayment process
• No fixed payment schedule
• No application or upfront fees
• No interest
How It WorksA cash advance provides your retail business a secure, fast, and reliable source of cash. It is not a loan, but a sale of your future credit and debit card receipts. Business’s are typically eligible for a 100% advance of one month’s credit and debit card sales volume.
Once approved, you will receive a cash advance and be able to use the funds for any business need. The advance is paid back by a percentage of future sales, collected directly from your batches. Unlike other financing methods, your cash advance has no minimum monthly payment or anything of the sort. Frontline Processing gets paid when your business gets paid.
FAQQ: How does the program work?
A: Frontline will advance you cash to use for your business. You will pay us back from a percentage of your credit card batches.
Q: What is the term?
A: There is no set term; Frontline gets paid back as your business gets paid. If sales increase, the advance is paid back faster, if sales decline, the advance takes longer to pay back.
Q: What does collection rate mean?
A: The collection rate is the set percentage taken from each batch. This percentage will be on each batch until the advance is completely repaid. Once the advance is repaid, the collection rate is removed and funding from your batches will return back to normal.
Q: What is my interest rate?
A: There is no interest rate on a cash advance.
Q: Where does Frontline make money?
A: Since there is no interest rate associated with a cash advance, Frontline receives a commission which is stated directly on the contract. We will advance you a set amount and you will payback a set amount which is a combination of the advance and the commission.
Q: Do you have an example?
A: Let’s say your monthly sales are $5,000 and a $5,000 advance is requested and approved. For the sake of simple math, let’s also say the payback amount is $6,000 with a collection rate of 20%. The $6,000 payback amount includes the initial $5,000 advance and $1,000 commission. As you process each batch, 20% will be taken out and applied to the repayment of the $6,000. After one month, you will have repaid $1,000. At the end of 6 months, the $6,000 will be repaid in full and funding will return to 100%.
Q: How much of an advance am I eligible for?
A: You are eligible for 100% of your average monthly sales volume, which is not mandatory that you take the full 100%. You may apply for more than your average sales but we cannot guarantee we will approve that amount.