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Merchant Cash Advance & Small Business Loan Program Changing - - PowerPoint PPT Presentation
Merchant Cash Advance & Small Business Loan Program Changing - - PowerPoint PPT Presentation
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
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RapidAdvance Quick Facts
Bethesda, MD HEADQUARTERS
2005
FOUNDED RapidAdvance is a leading provider of financing solutions to small and medium sized businesses in the U.S. COMPANY Rockbridge Growth Equity OWNERSHIP >$1B deployed to deserving businesses FUNDINGS PRODUCTS Rapid offers two financing solutions, Merchant Cash Advance (“MCA”) and Small Business Loans (“SBL”), 165 EMPLOYEES
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Member of the Quicken Loans Family of Companies
Note: This slide only represents a small sample of the full Family of Companies
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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.
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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
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Typical Customer Challenges
Unexpected
- pportunity
Cash flow timing Expansion
- r 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
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Targeted Merchants
Healthcare
Chiropractors 8041
Retail cont’d
Dentists 8021 Pharmacies 5912 Optometrists 8042 Grocery Stores Physicians 8043 Toys/Hobby Shop 5945 Veterinarians 742 Pet Store 5945
Lodging
Hotel/Motel 7011
Restaurant
Drinking Places 5813 Quick Service Restaurant 5814
Service
Barber Shops 7241 Restaurant 5812 Dry Cleaning/Laundry 7210 Bakeries 5461 Hair/Nail/Skin Care 7231
Retail
Party Supply Stores 5943 Health Spa 7298 Bicycle Shops 5940 Beauty Shops 7230 Dry Cleaners 7210 Automotive Repair 7500 Candy Stores 5441 Children's Shoes 5661 Children's Clothing 5641 Cosmetics/Perfumes 5977 Men & Women Clothing 5691 Family Clothing 5651 Food/Fruit/Gourmet 5499 Footwear 5139 Hardware 5251 Juniors Clothing 5641 Liquor Stores 5921 Meat/Seafood 5421 ` Optical Center 8044
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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.
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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
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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)
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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
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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
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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
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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?
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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
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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
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The RapidAdvance Difference
Client experience is our Top Priority!
- We make accessing capital EASY- FAST- FRICTIONLESS- RELIABLE
- New & Meaningful Revenue Stream for the ISO/ISA
- RA will close deals
- 75% of clients borrow again
- Avg. client completes 3 transactions over a 1.5 years
- Transactions range from $5,000 - $1,000,000
- Same day approvals!
- Merchants funded in 3-5 days – start to finish
- Terms extend from 3 months – 18 months (product specific)
- A full range of products
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The Formula
Capital = Stickiness = Retention = Residual Protection
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Value-Added Products Terminals/POS Merchant Services Value-Added Products Terminals/POS Merchant Services
Your ISO Today
Your ISO Rival ISOs
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Your ISO Powered by RapidAdvance
Your ISO Rival ISOs
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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.
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National Broadcast Media
TV Radio
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