When it comes to lending, Merchant Cash Advance has become an important term in recent times. It provides businesses with a large volume of cash in lieu of the credit card sales in the future. Unlike traditional loans that you get from the banks or other financial institutions, it’s a short term loan and hardly requires any collateral or so to provide the cash advance to the concerned person. It does not even need any credit checking. The lender, in this case, is most likely to look at your past transactions and extend you the cash advances.
Leverage the centralized database of ConvergeHub CRM to store merchant data, such as industry, credit score, revenue, and history of earlier cash advances.It also contains crucial data on the terms and conditions of the cash advance agreement. It also includes the details on the borrowed amount, repayment schedule, penalty fees and so on.
Get the complete details of the deal workflow from a single dashboard. It involves identifying potential merchants who are interested in getting a cash advance. Accordingly, offers are being made based on the underwriting analysis on the pre-qualified merchants.
Get the full details of the agents who are responsible for securing the merchants’ leads and securing deals on behalf of the MCA provider.
Run automated marketing campaigns across multiple channels including online, offline and referral. Execute marketing campaigns to take potential merchants through different stages of the buyer's journey, from awareness to consideration to decision-making.
MCA brokers and funders can now experience the power of everything in one place with ConvergeHub.
Central repository for merchant contact information, documents and underwriting information.
Integrated with DocuSign, Email and Fax application templates for merchants and funders.
Use Dashboards, Summaries, Advanced Search, History and Calendar to stay up-to-date.
Deal Conversion
Get effortless and streamlined one-click conversion from lead to deal.
Partner Collaboration
Leverage multiple fund submission and tracking to make the most of your business.
Deal Tracking
Track deals from underwriting to funded stages at each and every stage of the journey.
Template-based
Pre-built templates for quick submissions which makes the lending process hassle-free and accurate at the same time.
Fees and Commissions
Get the complete details of syndicate and track approval numbers, management fees and commissions.
Renewals
Keep a track of the multiple deals and renewals which can be accessed as and when rerquired.
No hardware or software to install.
No advanced training needed.
Shortens time to go from Lead to funded Deal.
Easy collaboration with funders.
Automate tasks triggered by events.
Predefined reports to manage leads and deals.
Dedicated Secure Amazon Servers with a support team ready to support.
Recognized by CRM Idol and Small Business Influencer Awards.
Automate email campaigns & newsletters and at the same time keep a track of the open rates and responses.
Keep a track of the text messages that are being sent directly right from your mobile phones.
Keep a track of the template-based faxes that are being sent to communicate with specific target markets.
Use the intuitive dashboard and easy-to-use interface in order to carry out social media marketing.
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Merchant cash advance is a type of funding that offers businesses with lump sum cash and accepts a percentage of the credit and debit card sales in exchange. The lender offers cash as a loan or credit advance in exchange for the future revenues generated by the borrower.
In the first phase, a lender evaluates a business's sales history in order to determine whether it is capable of making the repayment. In case it passes through the underwriting process, the cash advance or loan is offered to the businesses upfront. Borrowers ( businesses) use this for purchasing inventory and taking financial control of the operations.
Repayment terms of the MCA includes weekly or monthly payments from the revenue of the debit and credit sales of the borrowers.
MCA software ConvergeHub automates every step in processing a merchant cash advance from application through repayment.
ConvergeHub is easy to use, user friendly and has an intuitive interface that makes it easy for you to navigate. It is also easy to install and integrate with existing systems like your accounting software or POS system. The company that develops this type of software knows what they're doing and have created something that works well for most businesses out there in the world today!
With the ConvergeHub CRM in place, merchant cash advance processes will be easier than ever before. Financial institutions can ideally automate the following three processes.
Application: The potential borrower will fill out an application form and provide the basic information to process the loan. It mainly includes the credit and debit card sales history.
Approval: In the following phase , applications will be shortlisted and those will be sent to the underwriter to review the credit foundation of your business. If the application passes through the approval process,the potential borrower will get the advance lumpsum.
Repayment:The repayment amount will be debited weekly or a monthly basis, as dictated by the terms in terms of a specified percentage of the debit and credit card sales. However, the repayment terms can vary.
There are three types of merchant cash advance payments
ACH- In this process, the lender deduct a fixed and specified amount from the borrower’s bank account on a daily basis until the whole amount of repayment is paid.
Credit Card Receivable Advance:In this format, the borrower is liable to pay a percentage of the revenue he earns from credit card sales.This is the most normal repayment procedure here.
Invoice financing: Cash advance or loan in this process will be available on the basis of borrower's outstanding invoices. The borrower will repay the advance as the customers’ pay their outstanding amount.
A merchant cash advance can be a great way to unlock business success.
Here are a few of the benefits that come with a merchant cash advance:
Applying for a merchant cash advance is relatively simple. Here’s what you need to do:
Gather the Necessary Documents: Before you apply, you’ll need to gather the necessary documents. This includes your bank statements, tax returns, and other financial documents.
Fill Out the Application: Once you’ve gathered the necessary documents, you can fill out the application. You’ll need to provide some basic information about your business.
Submit the Application: Once you’ve filled out the application, you can submit it for review. The lender will review your application and let you know if you’ve been approved.
Receive the Funds: Once you’ve been approved, you’ll receive the funds. The amount of money you receive will depend on your business’s credit card sales.
Merchant cash advances are a great way to write your business success and small business owners can certainly opt for this. But there are certain common mistakes which are likely to be avoided.
MCA underwriting is basically the process of evaluating the credit worthiness of a business institution. It involves the potential borrower’s background checking using their sales and purchase histories, reviewing financial statements, current assets and more. In fact, the sole objective of MCA underwriting is to check if a potential borrower is capable of making the repayment. Since no collateral or documents are involved in the process, the underwriting and background checking is extremely important.
In order to qualify for a merchant cash advance, a potential borrower needs to qualify for the following
While several points are being already discussed earlier, it’s always recommended to do a revenue check of a particular business from as many sources as possible. Because without a steady income ( consider revenue) source, it’s hardly possible for any business to make a repayment of whatever loan or cash advance it has taken. The credit score pretty much talks about the financial status of any particular company and to get a MCA cash advance, a business has to have a 500 credit score. Also, make sure that your business has a strong management group, strong management teams with several years of experience under their belt, and goodwill among the customers.
