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Introduction & Procedures
Overview

proud member of:
Since 2006, American Finance Solutions built a successful
reputation on three core values that reflect in every aspect
of ...
What is a Merchant
Cash Advance?
A merchant cash advance is a
finance product allowing small and
medium-sized businesses q...
How Does a Merchant
Cash Advance Work?
Based on minimal documentation,
AFS can determine how much
working capital can be f...
Why Sell AFS
Merchant Cash
Advance?
• AFS Puts The Merchant First
• Custom Pricing Offers For Each Client
• Multiple Repay...
What can the funds be
used for?
While most Banking Institutions have
restrictions on the use of funds,
AFS does not. Some ...
Businesses Using
Cash Advance
•
•
•
•
•
•
•
•
•

Restaurants & Bars
Retail Storefronts
Franchise Businesses
Grocery & Conv...
Factor Rates
All of the products that AFS offers
are approved using risk-based
pricing.
Once the funding risk is assessed,...
Cash Advance
Collection Methods
Merchant Cash Advance offers flexible
payment options not typically available
through stan...
Split Processing
Split Processing is a payback
method offered to businesses that
process credit card sales
transactions on...
Fixed ACH

How It Works

Fixed ACH payments are a
consistent collection method that
does not directly discount or reduce
t...
Lockbox/Trust
Account
Some credit card processing
companies are not approved split
partners with AFS.

How It Works
$1,000...
Merchant Cash Advance
Program
•

Qualify For $5,000 To $200,000
For A Single Location

•

Will Consider Higher Amounts;
Up...
Loan Program
Qualifications:
• Qualify For $5,000 To $200,000 For A
Single Location
• No Credit Card Sales Required –
Idea...
Premium Program
Options
Well-established business owners
may qualify for lower factor rates,
increased funding amounts and...
Fast Cash Program
Qualifications:
• Qualify For $5,000 To $20,000
(50% of Avg. Credit Card Processing)
• Absolutely No Cre...
What Do I Need to
Submit a Deal to AFS?
Merchant Cash Advance &
Fast Cash Programs
• One-Page Application
Completed & Sign...
What Do I Need to
Complete A File?
There are very few documents
needed to complete a file for AFS.

•

Proof Of Ownership
...
Submission
• Merchant Contact &
Paperwork Gathering
• Submissions Are Sent
To Admin Via Email To
funding@afsfunding.co
m
•...
What Can Cause a
Delay in Funding?

What Can Disqualify a
Deal From Funding?

Some Factors That Can Possibly Delay Funding...
Get Started Today!
Submit applications today via email or fax:
funding@afsfunding.com
fax 866-822-0269
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Why Partner With American Finance Solutions & Small Business Financing / Loans Overview

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Overview of why regional banks & small- to large-finance companies choose to partner with American Finance Solutions as their trusted source for referring their small business clientele

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Why Partner With American Finance Solutions & Small Business Financing / Loans Overview

  1. 1. Introduction & Procedures Overview proud member of:
  2. 2. Since 2006, American Finance Solutions built a successful reputation on three core values that reflect in every aspect of our organization: About AFS • Licensed Lender • Bonded, Insured & Regulated • Ability To Finance In All 50 States • Never Any Upfront Fees Or Points • Service We deliver results to our clients and partners while continually striving to exceed expectations. • Value We make it easy for our partners to do business with us and provide competitive programs. • Integrity We partner with people that share our high ethical standards – this is the cornerstone of AFS. • Industry-Leading Customer Service • Proven 8+ Year Track Record • Custom Pricing For Each Client • Highest Renewal Rate In The Industry • Accredited BBB With “A” Rating • Respected Members Of: • ETA (Electronic Transaction Association) • IFA (International Factoring Association) • NAMAA (North American Merchant Advance) • Full Range Of Program Options • Premium Pricing For Established Businesses • Starter Advance For New Businesses • Approvals For Almost All Business Types • Loan Option For Low Transaction Clients Service. Value. Integrity.
  3. 3. What is a Merchant Cash Advance? A merchant cash advance is a finance product allowing small and medium-sized businesses quick access to working capital in exchange for an agreed upon portion of their future credit card receivables. Alternative Financing.
  4. 4. How Does a Merchant Cash Advance Work? Based on minimal documentation, AFS can determine how much working capital can be funded to a business. By projecting upcoming sales, we are able to establish an easy and flexible program for the merchant to repay us through an agreed-upon percentage of their future credit card sales. Leverage Future Sales to Acquire Funding Today.
  5. 5. Why Sell AFS Merchant Cash Advance? • AFS Puts The Merchant First • Custom Pricing Offers For Each Client • Multiple Repayment Options • Deliver An Exact Solution For Your Client • Fast Funding – 5 Days Or Less • Simple Application Process • Approvals Within 24 Hours • Minimal Documentation Required • Simple Qualification • High Approval Rate • Minimal Documentation • Approvals Up To $200,000 Per Location • Easy To Do Business With • Fast Decisions Upon Application • Online Portal To Track Entire Process • Trained Staff To Assist Every Step Land More Accounts & Focus On Increasing Value.
  6. 6. What can the funds be used for? While most Banking Institutions have restrictions on the use of funds, AFS does not. Some popular uses include: • Inventory • Line Of Credit • Working Capital • Remodeling or Expansion • Marketing • Purchase Another Location • Payroll or Taxes • Purchase New Equipment • Emergencies Use The Funds To Grow Your Business.
  7. 7. Businesses Using Cash Advance • • • • • • • • • Restaurants & Bars Retail Storefronts Franchise Businesses Grocery & Convenience Stores Doctors, Dentists, Medical Professionals Hotels & Motels Automotive Repair Shops Hair & Nail Salons Day Spas Ideal Industries Using Cash Advance.
  8. 8. Factor Rates All of the products that AFS offers are approved using risk-based pricing. Once the funding risk is assessed, the program is given a factor rate to determine the payback amount of the advance or loan. The factor rate has no prepayment penalty and does not increase like an interest rate. Approved Funding Amount: $10,000 Factor Rate: 1.25 Payback Amount (Purchased Price): $12,500
  9. 9. Cash Advance Collection Methods Merchant Cash Advance offers flexible payment options not typically available through standard bank lending. There are three different ways that a merchant cash advance can be paid back to AFS. The three collection methods available are: 1) 2) 3) Split Processing Fixed ACH Payments Lockbox/Trust Account Deposits More Options. More Opportunities.
  10. 10. Split Processing Split Processing is a payback method offered to businesses that process credit card sales transactions on a frequent basis. How It Works $1,000 $900 It is easy, seamless and does not involve any hassle to the merchant. $100 This example represents a 10% Withholding
  11. 11. Fixed ACH How It Works Fixed ACH payments are a consistent collection method that does not directly discount or reduce the credit card sales from the merchant. It is simply a set payment deducted from the business’ bank account. This method is usually ideal for business owners that: • Don’t Process Many C/C Sales • Have More Cash/Check Sales • Looking to Have Set Payments • All Loan Programs $1,000 $1,000 $100
  12. 12. Lockbox/Trust Account Some credit card processing companies are not approved split partners with AFS. How It Works $1,000 If a merchant cannot, or refuses to, switch their processing account (and does not qualify for a Fixed ACH payment) the Lockbox/Trust Account payback is another possible collection method. $900 The setup process can take longer to get funding to the merchant, cause delays in receivables to the merchant and incorporate additional fees. However, it can prove to be a solution when no other option is available. $100 $1,000
  13. 13. Merchant Cash Advance Program • Qualify For $5,000 To $200,000 For A Single Location • Will Consider Higher Amounts; Up to $500,000 For Multiple Locations • • Customized Pricing Options With Payback Terms Up to 12 Months Qualifications:  No Minimum FICO  Judgments/Liens Less Than $100K  4 months In Business  Not more than 30 days past due on rent/mortgage  No open BK or BK Proceedings Split Collection, Fixed ACH & Lockbox Repayment Options Our Most Popular Finance Product.
  14. 14. Loan Program Qualifications: • Qualify For $5,000 To $200,000 For A Single Location • No Credit Card Sales Required – Ideal for Doctors, Dentists, etc. • Customized Pricing Options With Payback Terms Up to 12 Months • Fixed ACH Repayment Only  Minimum 550 FICO  Judgments/Liens Less Than $100K  12 months in Business  Not more than 30 days past due on rent/mortgage  No open BK or BK Proceedings No Credit Card Sales Required.
  15. 15. Premium Program Options Well-established business owners may qualify for lower factor rates, increased funding amounts and more ideal terms. Premium Approvals are given on both programs, pending qualification and Underwriting Approval. Qualifications:  Minimum 600 FICO for the MCA Program  Minimum 650 FICO for the Loan Program  24 months in business  Not more than 30 days past due on rent/mortgage  No open BK or BK Proceedings Better Rates. Higher Funding Amounts.
  16. 16. Fast Cash Program Qualifications: • Qualify For $5,000 To $20,000 (50% of Avg. Credit Card Processing) • Absolutely No Credit Check Required • Same Documentation Needed as Merchant Cash Advance Product  Must Process Credit Cards With Approved AFS Processor  4 months in Business  Not more than 30 days past due on rent/mortgage • Short-Term Programs (Typically Under 4 Months)  No open BK or BK Proceedings • Split Collection Repayment Only No Credit Check. Fast Turnaround Time.
  17. 17. What Do I Need to Submit a Deal to AFS? Merchant Cash Advance & Fast Cash Programs • One-Page Application Completed & Signed By The Merchant • Most Recent 3 Months Of Credit Card Processing Statements (12 For Seasonal/Restricted) Loan Program • One-Page Application Completed & Signed By The Merchant • Most Recent 3 Months Of Business Bank Statements (12 For Seasonal/Restricted) • Most Recent 2 months Of Business Bank Statements Minimal Documentation Needed.
  18. 18. What Do I Need to Complete A File? There are very few documents needed to complete a file for AFS. • Proof Of Ownership  Articles Of Incorporation  K-1  Business License • • • Legible Drivers License/ID (All Owners) Voided Check for Main Operating Account Financials for Requests on Larger Deals  Current Financials (P&L And Balance Sheet), Or  Most Recent Tax Return  Tax Guard Service May Also Be Used Less Than Require By Major Banks.
  19. 19. Submission • Merchant Contact & Paperwork Gathering • Submissions Are Sent To Admin Via Email To funding@afsfunding.co m • Client Entered Into Agent’s Online Portal To Track Remainder Of Process Underwriting • File Submitted to UW for Final Approval & Stipulations List • Once Merchant Agrees To A Quote, Sales Agent Requests Contracts From Account Manager • Return Of Signed Contracts & Any Requested Stipulations • Account Manager Provides Preliminary Contract Terms Simple Workflow. Verification • Merchant Receives Welcome Call • Merchant Notified Of 3rdParty Site Inspection (If Required) • Landlord/Mortgage Verification On Business Location • Confirmation That Repayment Method Is Active • Recorded Verification Call Completed Funding • Funding Occurs After All Verification Processes Have Been Completed • Merchant Receives Funds Via Wire • Merchant Receives Email & Customer Service Call With Client Portal Log-In Details • Customer Service Follow Up Every 30 Days To Ensure Maximum Client Retention
  20. 20. What Can Cause a Delay in Funding? What Can Disqualify a Deal From Funding? Some Factors That Can Possibly Delay Funding Include: Some Factors That Can Disqualify a Client for Funding While in Process: • Merchant Not Available for Welcome Call or Recorded Verification Call • Past Due on Rent/Mortgage More Than 30 Days • Information Provided is Incomplete • In Collections with a Competitor • Landlord is Unresponsive or Uncooperative • False Representation by the Merchant • Missing UW Stipulation Documents • Receipt of Payoff Information from a Competitor 92% + of Contracts Fund Once in Verifications
  21. 21. Get Started Today! Submit applications today via email or fax: funding@afsfunding.com fax 866-822-0269

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