I was asked where one could get some 3rd party verification on how merchant cash advances worked? Seeing there is really no industry related information at NAMAA, (the sham it is) website I searched for the request and found it at business news weeks website. So here you go just click HERE. You will find what you are looking for regarding merchant cash advance and the industry that is merchant cash advance.

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Interestingly enough I found this chart at CNNMoney.com and wondered if the bank failures and foreclosures were heavily tied together in each State. After studying the information amazingly they almost paralleled each other for the highest bank failures and foreclosures. What do think?

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NorthPoint Fundingis owned and operated by Brent LeBaron. They are based out of Utah and can be reached 866.305.7886. I will tell you this, Brent is a straight shooter from the word go. He won’t let me get away with anything when it comes to Merchant Cash Advances, Oops, I tipped my hat again…..Industry insider. Back to what is important. Integrity, honesty and hilarious sums up Brent. Give him a call and see why he has made 0ne of my favorite ISO’s

Q. How did you get into the MCA industry?

Brent. My nephew, Craig LeBaron – more like a brother – had been telling me about the MCA industry for the past five years, when started out as a full-time IC for AMI. As the industry developed, his own business metamorphosed into, first, doing cold calls from a provided list of existing merchant users. His income shot up from $35,000 his first year, into multiple hundreds of thousands in the next skein of years.

Meantime, I was working successfully as a sales executive with Lexus, which I worked with for 18 years, and had a great and relatively predictable income. But the long hours of retail… working nights, weekends, holidays eventually began to eat at me – and I felt like there was something a lot better where my selling skills and outreach capabilities could be effectively harnessed. Also, at Lexus our mantra was from its beginnings, “The customer needs *always* come first… and customers sense the difference between “lip service” and intensive, considerate follow-up.

Eventually, this led to resigning from Lexus and initiating my own MCA referral agency, NorthPoint Business Funding. I only wish I’d made that break a lot sooner.

Q. What is the number one goal of your business?

Brent. Financial independence – being able to keep my repeat clients’ ongoing financial needs met, in turn creating a solid foundation of my own over the coming seasons and years.

Q. What industry do you consider your favorite to fund?

Brent. Food services/hospitality industry.

Q. What is your strength?

Brent. I think it is in communication. If I don’t know an answer, rather than fake what I think it might be, I’ve learned to admit that I’m human and fallible, but eager to get concise, correct information to base an intelligent decision on. It’s often amazing how “forgiving” people are of admitted ignorance on a subject, vies-a-vies professing to be an expert only to be proven to be faking it.

Another important factor of communication and especially since so much of our work is not face-to-face but by phone… and that is exerting warmth over the phone lines. Finding the balance between being overbearingly friendly – to the point of having your sincerity placed in doubt – and being read as overzealous and pressure some, is perhaps one of the greatest aspects of salesmanship to stay in tune with.
 

Q. Why should a merchant use you over someone else?

Brent. I make a concerted effort toward keeping abreast of market conditions, including special programs, rate offerings, etc. as they become available. Certainly I have my preferred MCA partners whom I like to direct business to, and I consider it vital to stay in touch with them as conditions change, especially in current economic trends. My policy is, once a client is funded, to follow up – not with a mere thank-you email – but with a personal, non-template letter, expressing 1) how deeply I appreciate the client having chosen to deal with me and my company; 2) to remind the merchant that I would like to include their candid views of our relationship on our corporate website, and 3) very importantly, to request that the keep NorthPoint Business Funding in mind as “their” MCA agency when they are discussing their capital funding source with close friends of business allies.

Then, I follow up with a personal phone call – to reassure the merchant that I have not forgotten the close ties that have helped forge the business relationship.

One of the key reasons for merchants “jumping ship” from a particular MCA association, involves poor follow-up techniques and habits. We can’t afford to let our clients feel that either we’re no longer there for them or that we’ve spent the commission… call it a day.
 

Misc. Comment as you like

My personal conviction is that being part of the MCA industry at a time when bankers are quick to thumbs-down the bulk of commercial loan applications, and despite considerable rigidity in underwriting departments – this is  a terrific period of opportunity and financial stimulus.

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Here is an interesting article that outlines where the bailout stimulus bill does not specifically require government agencies to spend a penny with small businesses. Not surprising, “If history is any guide, there is reason to be concerned,” said Rep. Glenn Nye (D-Va.), chairman of the House Small Business Subcommittee on Contracting and Technology, during a congressional hearing. “The federal government has not once, in the last eight years, reached its small business contracting goals.”

Does it ever end? Business cash advance

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Truth 4 Factor Rate is the mother of all truths in your quest for accuracy and cost of money. First, this is not an interest rate. Remember this is not a loan but an agreement between you and the funding company to sell a percentage of your future credit card receivables. But the Factor Rate is very important. Let’s demonstrate, shall we….

John is approved for a merchant cash advance of $50,000 and the funding company has agreed to purchase $67,500 of future credit cards what is the factor rate being charged?

To answer that we need to understand what factor rate ranges most funding companies charge. These factor rates will be different between the funding companies and will vary according to your business type, length of time in business, both the business and personal credit along with the annual gross revenue of the business and credit card volume and finally, turn time. Tip: The shorter the turn time the more favorable the factor rate usually.The lowest factor rate I have seen is 1.12 or 12 points on the money. The highest was 1.55 unless you get involved with a restaurant rewards network funding company. Then it could jump to a full 2.00, ouch!

In our example above John is being charged a factor rate of 1.35. Take the advanced amount $50,000 multiplied by 1.35 and you get $67,500. So let’s look at it when we use a more favorable factor rate, say 1.29. $50,000 x 1.29 = $64,500 or $3,000 less cost.

Your goal should be to negotiate the lowest Factor Rate you can. But realistically, if you have marginal or less credit and not a long business history don’t be shocked if you can’t find a factor rate less than 1.30

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Truth 3 – Hold back (AKA Remittance) Percentage deals with the percentage amount that will be allocated on each credit card transaction towards the repayment of the merchant cash advance until the total amount is paid off. It is important to note that this is not an interest rate, many people confuse this as such but it only serves as the percentage amount in relationship to the split allocated to the repayment.

For example: John’s business took in $1,000 of credit cards today. If John’s hold back percentage was 15% then $150 would be allocated towards the merchant cash advance outstanding balance.

Your goal should be to keep your holdback or remittance percentage to a level that you are comfortable with. The lower the hold back the less cash flow impact you will experience. business cash advance

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Loan Solutions, USA is owned and operated by Dave Senor, Roger and Bev Nevard and I have had the pleasure working with them for some time now. (434) 385-0066 These folks really care about you and your business.

Q. How did you get into the MCA industry?

Roger and Dave. We both have a strong background in the Finance/Loan industry and saw an opportunity to offer Merchant Advances to small businesses that could not get affordable funding from traditional sources.

Q. What is the number one goal of your business?

Roger and Dave. Our main goal is to provide the best merchant cash funding solutions for our clients.  The industry has far too many unscrupulous agents … and our commitment to integrity & professionalism helps us stand out compared to the competition.  We always work on behalf of the client FIRST to ensure any merchant cash advance we recommend will be in the client’s best interest.  

Q. What industry do you consider your favorite to fund?

Roger and Dave. We work with clients from a number of industries, but Restaurants, Salons and Tire stores are mainstays for us.

Q. What is your strength?

Roger and Dave. Our company’s strength is building good relationships and providing “over-the-top” customer service

Q. Why should a merchant use you over someone else?

Roger and Dave. We provide real solutions to merchants and work as true advocates to find the best merchant cash funding solutions.  Our clients love our ethical, professional support and “Client-First” style.  Merchants intuitively “get” the fact we truly care about them and their company’s survival.

Comment as you like

For more information about our unique client-based approach to fast merchant advances … check out www.MerchantCashAdvanceASAP.com

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Truth 2 – Hypothetical Future Credit Card Sales

A merchant cash advance is something that is not set on a fixed time period and the funding company is buying a percentage of your future credit card sales that no one, including you, can be exactly sure how much you will do. The funding company looks at your past, typically over the last 6 to 12 months, averages the credit card volume and then looks to the future based on an expected turn time (Usually between 4 and 12 months) multiplies the average monthly credit card volume by the expected turn time and you have the Hypothetical Future Credit Card Sales. It is often referred to as Right to Receive as the funding company has rights to the future credit card sales they purchase call business cash advance

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Welcome to My Favorite ISO is designed to let you know that I am not trying to corner the market for myself but continue providing accurate merchant cash advance information that is credible. Remember, I am in industry insider and know a lot of good quality people and these folks I have had the pleasure working with and know their reputation personally.  

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Truth Number 1 has to start with what is a merchant cash advance? As we read through the truths you will see that terms will be linked for easy reference.

Our friends at Wikipedia don’t have any pages when you look up Merchant Cash Advance, WOW, what are we to do? How can I get accurate information if it is not in the free encyclopedia?

Well remember, I am an industry insider and have a lot of years experience. Oops, can’t give out to much information about me. Anyway, back on subject.

Merchant Cash Advancing is where a business who accepts major credit cards, typically Visa MasterCard and American Express, for payment of the products and or services they provide agree to sell a percentage of their hypothetical future credit card sales at a discounted cash value, today.

This is what a merchant cash advance is.

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