Alternative Working Capital 

Solutions

Presenter: Gary Lockwood 
Moderator: Kelley Spencer
Overview
 About AmeriMerchant
 What is a Merchant Cash Advance
 Merchant Cash Advance Benefits to the merchant & to ISO’s/Sales Reps
 Required Documentation for MCA
 Merchants To Target 
 Merchant Cash Advance Programs
 Payback

 New Product ‐ Main Street Business Loans 
 What is Main Street Business Loans
 When is MSBL a good option
 States MSBL is available in 
 Required Documentation for MSBL
 Why now is a good time to offer working capital
About AmeriMerchant
 Leading provider of working capital solutions
 One of the oldest and most reputable providers in the merchant cash advance 
industry
→ Founded in 2002
→ Headquartered in New York City
 Founding member of North American Merchant Advance Association (NAMAA)‐
Best Practices for MCA Industry 
 Can provide up to $500,000 in working capital
 Advanced real‐time reporting system
 Can advance against all card types
 Fast underwriting & approval times 
What Is A Merchant Cash Advance
Definition: Merchant Cash Advance (MCA) is an alternative financing solution which 
offers merchants access to capital based on their monthly credit/debit card sales. 
Through the purchase and sale of credit/debit card receipts, money is advanced 
upfront to a merchant and the advance is repaid by taking out a small % of the daily 
credit/debit card sales until the advance is paid off. 

Example based on an average credit card processing volume of $75,000/month 

Program: 1.32 1.35 1.40 1.39 est. 5

est. 6 months est. 7 months est. 8 months New business
Offer Amount $50,000 $50,000 $50,000 $40,000
Payback $66,000 $67,500 $70,000 $69,500
Withholding 15% 13% 12% 15%
Benefits of a Merchant Cash Advance

Benefits to Merchant
 Higher approval rates than traditional finance products
→ Most small businesses don’t have fixed assets to pledge
→ Many merchants have a hard time obtaining loans from banks
 No fixed monthly payments
→ Works with their cash flow
→ Repayment is made by delivering a fixed % of a merchant’s future credit card 
sales to the purchaser (the MCA Provider)
 No personal guarantee
 Some uses for a Merchant Cash Advance
→ Advertising, Expansion, Partner Buyout, Cash‐flow, Renovation
Benefits of a Merchant Cash Advance

Benefits to ISO’s / Sales Reps
 High Commissions
 Obtain high quality merchants
→ Average processing volume $20,000 ‐ $22,000/month
→ Typical low risk processing industries:
• Restaurants
• Card present environments
• “Merchant Acquirer Friendly” SIC Codes
→ Acquire merchants without selling on price and avoid bankcard margin compression
 Lower merchant attrition / higher retention
→ 70% of merchants renew for additional working capital
Required Documentation for Merchant Cash Advance

 AmeriMerchant working capital application
 Last 4 months credit card processing statements
→ 2 months if only in business for 2 months
 Most recent bank statement
 Driver’s license 
 Proof of business ownership
 Blank, voided check
Merchants To Target
 Process at least $5,000 per month in Visa/MasterCard sales from their customers
 Credit cards processed daily
 Average transaction size $500 or less
 Cards are swiped in person at place of business
 Brick and mortar locations
 Merchant owns their inventory (no drop shipping)
 Batches out their terminal at least 10‐12 times per month

Some ideal business types to target*:
 Restaurants  Hair & Nail Salons
 Nightclubs/Bars  Coffee Shops
 Day Spas  Pet Supplies/Grooming
 Pizzerias  Sporting Goods Stores
 Clothing Stores  Laundromats
 Liquor Stores  Florists
*while these are ideal business types to start out with, we can review nearly any
industry that accepts credit cards for their services and products.
MCA Programs
Traditional Merchant Cash Advance
 The majority of merchants will fall into this program
 Ideal for brick and mortar retail locations with small tickets and daily batching
 Merchants usually approved for up to 80‐100% of their average monthly 
processing volume
 Pay back within an estimated 6‐9 months

New Business Program
 For merchants who have been in business under their current ownership for less 
than 1 year
 Qualify for less funds – generally about 50‐60% of their average monthly 
processing volume
 Can be processing for as little as 60 days / 2 months
MCA Programs
Trial Advance Program
 Designed for merchants who are lacking in one of our approval requirements: 
lease/mortgage standing, credit score, small liens
 Must process at least $10,000/month and have been in business for at least 6 
months
 Qualify for 25‐35% of their average credit card volume
 Quick estimated turnaround: 2 ½ month program
 Excellent renewal opportunities

Platinum Program
 Factors range between 1.19 – 1.349 over an estimated 5‐10 months
 Additional upfront fees apply
 Stricter underwriting requirements
 Collection Methods and Fees

1) Pass-through Account (PTA): To collect on the payback, a separate business checking account
is opened in the merchant’s name. The full deposit is diverted into the Pass-through account, where
the withholding is applied. The funds are then swept to the business owners original Bank via ACH
transfer.
• $25 monthly maintenance fee for the life of the advance

2) Split Funding: We have the ability to provide merchant cash advances without having the
merchant switch processors. This process is seamless and is a very strong selling point. The
term for this is called ‘split funding’. The percentage we take to repay the advance comes
directly off the credit card batch and is sent to our company. The bulk or the rest of the
batch/settlement will be sent to the merchant’s bank like it normally would. For risk purposes,
we typically need to see 2 nights of normal size batches with the ‘split’ turned on. We then can
proceed with our processes of funding a merchant.

Fee Breakdown: While no application fee is ever charged to the merchant, a processing
fee does apply should they choose to take the advance. In order to recover some of the
associated costs of underwriting the fees are applied as follows:
• for deals $10,000 and over: $295
• for deals $5,000 and $9,999: $195
• for deals $4,999 and below: $95

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Main Street Business Loans
Main Street Business Loans
Main Street Business Loans
We are excited to introduce a new loan product aimed at “Main Street Businesses” 
that are unable to receive a traditional bank loan. This product is geared towards 
businesses that typically would not fit the business type criteria for a merchant cash 
advance. 

Features:
 Average MSBL funding size is nearly double that of a MCA
 Fixed daily payments
 No minimum processing volume required
 Only need to be in business 1 year (540 Fico Score or higher) 
 Considerably less documentation needed than a bank loan
 Future delivery accepted
 High approval rates
What is a Main Street Business Loan?
Definition: an alternative business loan is a short‐term loan program based on total 
gross monthly sales volume.
 Financing up to 11% of the gross yearly sales
 Fixed daily payments / direct ACH (Monday‐Friday)
 Program terms range from 3‐10 months
 Premium pricing available 

Example based on average gross volume of $75,000/month 
1.359/8 1.29/5 1.19/5 1.15/3 1.299/10
Program: Standard  Standard Premium  Premium  Premium 
Pricing Pricing Program Program Program
Loan Amount $50,000 $50,000 $50,000 $50,000 $50,000
Payback $67,950 $64,500 $59,500 $57,500 $64,950
Daily Repayment $424 $645 $595 $958.33 $324.75
When Main Street Business Loans is an option

MCA MSBL
Limited credit card volume *
Frequent batching, low daily transactions *
High average tickets and/or future delivery *
E‐Commerce and MOTO *
Store‐front (brick and mortar locations) * *
Warehouses, manufacturers, etc. *
Home‐based businesses *
Auto Repair and Sales * *
Restaurants, retailers, etc. * *
Doctors, Lawyers and other Licensed Professionals *
States we can do business in

• Alabama • Mississippi
• Arizona • Missouri
• California • Nebraska
• District of Columbia • New Hampshire
• Georgia • New Jersey
• Idaho • New Mexico
• Illinois • North Carolina
• Indiana • Ohio
• Iowa • Oregon
• Kansas • Pennsylvania
• Louisiana • South Carolina
• Maine • Utah
• Maryland • Washington
• Massachusetts • Wisconsin 
Required Documentation for MSBL

 Application signed by 51% or more of ownership 
 Last 4‐6 months of bank statements (all pages) 
 Driver’s license 
 Proof of business ownership
 Blank, voided check
Now Is The Perfect Time To Offer Working Capital
Upcoming Holiday Season
 Holiday sales can amount to 25%‐40% of many retailer’s annual sales
 Retailers need working capital now for inventory / advertising / marketing for the 
holiday season
 Retailers need to avoid “empty shelves” at all cost
 Banks lending requirements are still stringent with small businesses
 With banks being tighter than ever, we are seeing better credit worthy applicants 
applying for a Merchant Cash Advance & Main Street Business Loans
 For these more established businesses with better credit, we can offer a lower cost 
product than standard merchant cash advance rates
 Faces of AmeriMerchant
Training, Assistance and Agent Support:
David Goldberg Gary Lockwood
Director of Business Development Director of Business Development
(800) 267‐3790 x113 (800) 267‐3790 x135
dgoldberg@amerimerchant.com glockwood@amerimerchant.com

Kelley Spencer
Business Development Coordinator
(800) 267‐3790 x138
kspencer@amerimerchant.com

Submission, Contracts and Customer

Support:
Brianna Burns Kelsey Boudette
Client Account Manager Client Account Manager
(800) 267-3790 x120 (800) 267-3790 x195
bburns@amerimerchant.com kboudette@amerimerchant.com

Isosales@amerimerchant.com

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