FAQs
About Merchant Capital Source
Merchant Capital Source has been helping small and medium sized business owners access working capital to grow their businesses for over 15 years.
A direct lender is a financing company that uses its own capital to provide loans and advances. However, most companies in our industry are brokers that refer businesses in need of financing to direct lenders and get paid a commission.
Working with a direct lender has many advantages, such as:
- Savings: Without the middleman earning a commission on the deal, business owners end up paying significantly less.
- Faster: Since all approval decisions are made within the company (there is no waiting for third parties to decide) the process is much faster.
- Flexibility: Since we use our own capital, we set our own guidelines and can be more flexible.
- Secure: Your personal information is not shared with third parties.
Unlike banks, we work exclusively with small and medium-sized businesses, so our products are designed exclusively for them. We aim to create a simple and stress-free process, with minimal paperwork, where business owners can get an approval in as little as 24 hours.
Getting a loan from a bank can take months and involves a complicated process. Moreover, most small business will not qualify for a bank loan unless the owner has assets that are acceptable to the bank as a guarantee to secure the loan (for example the owner’s house).
Many online lenders strive to automate their entire process, removing all human interaction and offering a one-size fits all solution. However, we understand that all small businesses are different and with different needs. That is why we like to talk to our customers. This way, businesses get the right product and the right amount of funding, structured for their unique needs.
Absolutely not. While there are many companies in our industry that use predatory techniques to prey on small business owners, we do not use confession of judgement or any similar tactics. We believe our customers are acting in good faith, and so do we.
We would not have survived for over 15 years in this industry if we treated our customers poorly. Nor would over 70% of our customers return for additional funding with us.
The Process
There are only two requirements to apply:
- Being in business for more than 6 months
- Having at least $10,000 in sales per month
No, there is no cost in applying. Once we receive and review your information, we will provide you a proposal at no cost or obligation to you. And then it is up to you to decide if you want to take the offer or not. This approval process usually happens within 24 hours of receiving all the information.
Yes. We often offer larger advances and loans, and at better terms, than our competitors. We will help you pay off your existing debt if it is in your business’s best interest.
We can typically approve applications within 24 hours of receiving all the information. Once approved, we fund in as little as 48 hours.
Cash Advance and Loan amounts range from $5,000 to up to $250,000 for new clients.
Terms can range from 3 months to 1 year.
Of course! Our products are revenue based. This means that the amount of funding is determined by the sales of the business, not the credit score of the owner. Although reviewing your personal credit is part of the underwriting process, it is not a determining factor in our decision.
MCS places no restrictions on how you choose to use the money. Common uses include the purchase of inventory, purchase of equipment, remodeling, expansion, advertising, debt or tax payments. But it’s entirely up to you!
Regardless of the product you select, all payments are automatically collected by us. So, you never need to worry about missing a payment or having to pay any late fees.
No. Existing clients can request more funds at any point. We usually like to wait until the balance is about 50% repaid to provide more funds.
You can pay your balance early without incurring a penalty. In fact, we offer early payment discounts to clients that think want to pay early.
If you think you might want to pay off early, request that an early payment discount be included as part of you contract.
Our Products
The main difference between the Cash Advance and the Loan is that the Cash Advance has variable payments that fluctuate with the sales of the business while the Loan’s payments are fixed.
- Payments are flexible. If your sales drop, so do your payments.
- There is not personal guarantee.
- Can be offered in all 50 states, but the business needs to have a minimum of $10,000 in monthly credit card sales.
- Payments are fixed. Easier for budgeting and planning.
- Faster funding process. We don’t need to involve the credit card processing company.
- Easier to qualify. No minimum credit card sales.
Call our office and one of our Funding Specialists will ask you some general questions about your business and recommend the best product for you.
Rates depend on several factors, including: your history with Merchant Capital Source, your business operating history, business type, volume of sales and cashflow, amount and term of funding, the type of product selected, the payment structure and FICO score.
Absolutely not. While there are many companies in our industry that use predatory techniques to prey on small business owners, we do not use confession of judgement or any similar tactics. We believe our customers are acting in good faith, and so do we.
We would not have survived for over 15 years in this industry if we treated our customers poorly. Nor would over 70% of our customers return for additional funding with us.
