#1 – Traditional Bank Product

This program is based off a company’s total gross monthly volume.  It is set off interest rates ranging from 6.5% -18%.  The interest is found based off the client’s industry, term of the loan, as well as their FICO score (minimum FICO for Bank Only is 620).  This program is paid back one of three ways.

1. Depending on the integrity and security of the industry a risky merchant would be ACH’ed a fixed daily payment out of their business bank account Monday-Fridays.
2. If they have decent credit but there industry is still shaky they may be ACH’ed a fixed payment every Friday.
3. If they are stellar with performance and have a FICO score of 700+ it can be one monthly payment.

Terms stretch from 9 months, 14 months, and 22 months and in some cases up to 3 years!

 

See also:

• #2 – Receivable Financing (credit card factoring)
• #3 – Flex Funds (a version of a business line-of-credit)

 

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