Frequently Asked Questions
Have a questions? We have answers!
How do I qualify for a Cash Advance/Business Loan?
You need to own a business that has been in opperation for more than 3 months. You will need to fill out a preapproval application and submit all of the documents in full from the checklist provided by your Loan Officer.
There are a few different loan products we offer here at MiCamp Capital Lending. The first is a Cash Advance, which is based off of your Credit Card Receivables. We are able to lend up to 130% of a business’s AVERAGE monthly credit card receivables volume. The second is a Business Loan, which is for clients who want to borrow more than just their credit card receivables and want their other revenues, such as Cash & Check, to be accounted for as well, or for our clients who simply DO NOT take Credit Cards as a form of receivables from their customers. For those businesses that DO NOT take credit cards, we have a Loan Product that benefits you as well.
The Cash Advance/Business Loan is based on several different “Factors” of the business, which each Lender’s underwriting team will take into account when putting together a Loan Offer or Proposal for you. A few of the “Factors” considered include: the Type of business, length of time in business, banking behaviors, receivables (credit cards, cash, checks), and Tax standing (Liens, etc). These “Factors” will be taken into account when computing the potential loan’s overall risk and will ultimately be base of the Cash Advance/Business Loan.
There is not a set RATE or specific RATE for our Cash Advance/Business Loan products, as it is a “Factor Based Loan.” The different “Factors” that come into play will ultimately affect the rate & risk for the overall loan itself. After submitting your pre-qualification paperwork, as well as the documents listed on the checklist, we will come back with multiple loan offers. Each loan offer will have different Rates & Factors-- it is not like going to a bank where you have to qualify for their standard rate platform on their loans. In our case, being a hard money lender, it is actually a case-by-case scenario, with the rates varying widely from loan to loan.
Each Cash Advance/Business Loan will have its own specific Term & Conditions to pay back the loan. Some will be under a “split funding” scenario, where a small percentage of your daily batch (Monday-Friday) from your Credit Card Processing (receivables) & Visa-MasterCard ONLY will be put forth to pay back the loan. Another scenario will be a fixed amount on an “ACH Agreement,” where you would pay back a FIXED amount towards the loan out of your Business Bank account Monday through Friday ONLY.
Similar to the Rate questions, the term to pay back the loan will ultimately vary from Loan to Loan and from Offer to Offer. If your setup on a split funding agreement, the loan will be payed back as your business operates. If your business slows, then the loan payback will slow as well. If your business speeds up a little bit, the loan payback will as well. In turn, this will fluctuate the overall term of paying the loan back. If you’re on an “ACH Agreement,” the Term will again vary depending on the “FIXED” amount coming out to pay the loan Monday through Friday and the amount of money you borrowed, as well as the amount of the TOTAL PAYBACK.
This is also a case-by-case basis. Some lenders will only look at deals that are above a certain amount, but we are usually able to get money on the table even if a merchant is only looking for a couple thousand dollars. We advise every merchant who might be looking for a loan and thinks that it might not be enough to even bother with, to go ahead and send in the application, along with the items on the checklist. In most cases, we will be able to come to the table with a Loan Offer.
The maximum amount on our Cash Advance/Business Loans is usually $250,000 per business location; however, this is also a case by case scenario. If a business is solidified and can substantiate a loan of that size and even possibly more, we do have the ability to entertain those Loan Options as well. However, usually it’s a maximum of $250,000 per business location.
Our Cash Advance/Business Loans are not based off of personal or business credit. This is the reason we ultimately have these Loan Products, to allow a merchant who may have credit issues or their credit is simply spread too thin in order to obtain a standard Loan from the bank. We are lending against one’s business and the “Factors” of that business for how they relate to our risk matrix analysis, ultimately compiling the LOAN OFFER that a merchant will receive. The lenders will take into account the credit score, but it is not the “Make or Break” factor for our Cash Advance/Business Loans.
Our Cash Advance/Business Loans are not collateral-based loans and do not require personal guarantees. Our collateral for the loan is the business & its accounts receivables. In a Cash Advance situation, it will be the Merchant Services Account.