What can Smart Business Funding do for my small business?
We offer you a solution for the working capital needs of your small business that is not a bank loan or small business loan, so you are more likely to be approved.
How does a Business Cash Advance work?
Smart Business Funding purchases a percentage of your future sales transactions and provides funds to you today. Smart’s share of purchased receivables is remitted by having an agreed upon amount of your daily bank deposits debited from your bank account via ACH daily or by having a set percentage of your merchant account settlements paid to Smart Business Funding and the remainder passed through to your usual account.
Is there a restriction in the use of the advance?
You may use the advance for any purpose, inventory, new equipment, additional space, payroll, or general working capital needs
Examples of how businesses use the funds:
Marketing & Advertising
Remodeling / Expansion
Partner / Franchisee Buyout
What are the minimum requirements to qualify for an unsecured business cash advance or merchant cash advance?
• Must have a minimum of $15,000 dollars per month in bank deposits or credit card processing from sales activity.
• Business and business owner must not have any open bankruptcies or judgments
How long will I have to wait to find out if I have been approved for my business or merchant cash advance?
Pre-approval is usually obtained within a matter of hours. Funding can take as little as 24 hours depending on the time it takes to receive the necessary documents required.
How much can I qualify for?
Your monthly receivables deposit volume is the most significant factor is determining how much you will qualify you for.
How soon can I have the cash?
After a complete contract is submitted and approved, funding can happen in as little as 24 hours.
If I receive a Merchant Cash Advance will I have to change my credit card processor?
We have arrangements with some of the largest processors in the nation, if you already use one of them, we will not have to change your terminal or processor. However, if necessary we may need to switch you over to one of our preferred credit card processors. We work with a number of outstanding organizations that will match or may beat your current rates, and will make the transition as easy as possible.
What types of business qualify?
We work mostly with service, restaurant, and retail businesses, but all kinds of businesses may apply and be approved. We do not restrict by industry or geography, we will review the performance and circumstances of each individual business requesting an advance.
Who can answer my questions, or help me start the funding process?
You can reach our representatives at (917) 533-2979 from 8am-8pm EST, Monday-Friday, fill out our Contact Form, or you can email us at: firstname.lastname@example.org
What documents have to submit to receive an initial approval?
Completed and Signed business advance application form
Past 3 months of bank statements. Please include statements for all business checking, savings, and other accounts. If your business is seasonal, please provide bank statements for the past 12 months.
Detailed information regarding any existing Business or Merchant Cash Advance, i.e. Original amount of Advance, original term, payment and payment frequency, remaining balance, remaining term.
What documents do I have to submit to receive funding?
Copies of Driver’s License or Passport and any one of the following:
Copy of Business and /or Professional Licenses
Social Security Card or Medicare Card
Permanent Resident Card
Voter Registration Card
We must obtain verification of bank account status and current status of lease before funding can occur.
Banking Verification Authorization Form or Login and Password for online banking access.
Landlord Contact Authorization Form, or real estate tax statement and /or mortgage statement (if property is owned).
Signed Sales and Purchase Agreement ACH Authorization form – Completed and Signed
Must be signed by all owners
Bottom of each subsequent page much be initialed by all owners
Voided Business Check copy from same account as provided statements, no starter checks, checks without business name, or deposit slips.
Is this a bank loan?
This is not a bank loan. Our program purchases a specific dollar amount of your future sales revenues and we provide money that you can use now.
How can I speed up my business cash advance approval?
The most important thing you can do to speed the process is to make sure you send a complete and signed application form along with the required 3 months of bank and credit card statements.
How much will a business cash advance cost?
Each advances pricing is based on the specific financial situation of each business.
The following information is used to determine pricing:
• The amount of the cash advance that the business qualifies for versus the amount advanced.
• The estimated time before we receive the amount of sales revenue that we purchased.
• Additional factors including but, not limited to the full underwriting review of documents submitted for consideration.
• The amount and status of other advances or debt outstanding.
How is the daily remittance amount calculated?
Our underwriting department reviews the documents we require in order to determine how much cash will be advanced. We then do our best to structure an offer that fits best with the business’ cash flow needs as well as the business’ ability to sustain itself and allows us to receive the sales revenue purchased. We estimate how much revenue you will generate based on historical deposits, then calculate an appropriate remittance schedule.
What if my business has a bad credit history or no credit history?
A poor D&B rating or personal credit score, including delinquencies will not be the sole determining factor in the approval or decline of a cash advance. We fund deals for businesses with bad credit and with principals who have very low fico scores.
Is there any personal recourse?
There is no personal recourse, except in the case of fraud. We do not seek collection from you personally if you cannot pay back the advance due to a legitimate business failure. That being said we take care to make smart underwriting decisions before we approve businesses.
Are many businesses turned down for a Cash Advance?
We have a very high approval ratio (approximately 90%). Our underwriting flexibility assists us in being able to find funding solutions for almost any business.
How much of a cash advance can a business receive?
A business can receive up to 50% of their average Monthly Cash or Credit Card deposit volume.
Is Smart Business Funding providing the cash or is another company providing the cash?
Smart Business Funding is a direct funder, which allows us to have more flexibility that many others who are subject to approval of the ultimate funding source.
However, in some cases if your business cannot qualify for an advance with Smart Business Funding we will work with a select group of premier funding providers we have affiliations with to find a solution for your company.
Can a business request another advance before they have paid off their existing cash advance?
A business may qualify for another cash advance once they have paid back typically between 50% and 60% of outstanding business cash advance.
Why do you need to see my financial information?
Just as with any financial transaction we have to have some basis for determining whether or not providing an advance to a specific business is a sound financial decision. Therefore it is necessary that we request some of your financial information in order to make that determination.