september 2011 first data merchant cash advance (fd mca) · cash advance defined first data...

First DataMerchant Cash Advance (FD MCA)

September 2011

Merchant Presentation

2| © Copyright 2010 | First Data Corporation © Copyright 2010 | First Data Corporation

Why cash advance?

Small businesses face an

increasing challenge in obtaining

loans to fund their ongoing

operations:

• Lending to small businesses

contracted in the last two years by

$40b1

• 55% of small business owners

attempted to borrow in 2009; only

40% had their credit needs met

completely.

• 50% of small business applications

for new credit lines were turned

down

• 83% of small businesses report

using a credit card to support their

business2

Many small businesses have

been forced to turn to

commercial credit cards to

finance operations, a very high-

cost option.

First Data’s Merchant Cash

Advance provides a cost-

effective, convenient alternative

to access the working capital

needed to sustain your

business.

1Small Business Credit in a Deep Recession, William J. Dennis, Jr (Washington: NFIB, 2/2010).2Board of Governors of the Federal Reserve System, “Report to the Congress on the Use of Credit

Cards by Small Businesses and the Credit Card Market for Small Businesses”, May 2010.

Problem Solution


How would your business improve if you

had better access to working capital?

Easy access to working capital funds to help enhance your business:

• Expansion

• Remodeling

• Upgrade equipment

• Replenish inventory

• Website development


Features and Benefits

FeaturesBenefits• No monthly fees, payment is

received from each daily deposit

• Does not impact other

opportunities to apply for

traditional financing

• Fast and easy application process

• Quick turnaround time for approval

and funding

• Dedicated customer service team.

• Split funding from processing

account (avoid bank overdraft fees)

• Increased cash flow

• Opportunity to expand

your business

• Cash Advance is not

included as debt item on

credit history

• Alternative capital

solution vs. going into a

partnership or giving up

equity (keep ownership

control!)


Cash Advance Defined

First Data purchases a set dollar amount of a

merchant’s future MasterCard and Visa credit and

non-PIN debit card receivables; in exchange the

merchant receives cash. A set daily retrieval

percentage of the merchant’s daily MasterCard

and Visa credit and non-PIN debit deposits are

then remitted to repay the cash advance.


First Data Cash Advance—Eligibility

Merchants meeting the FD MCA minimum criteria may

apply for a First Data Merchant Cash Advance.

• Approved First Data Independent Sales (FDIS)

merchant processing account

• Minimum one year in business

• Minimum $5,000 MasterCard and Visa credit and

non-PIN debit card processing per month

• No open bankruptcies, tax liens or judgments

• SIC cannot be on the prohibited merchant list


Process

• Complete an application with your FDIS agent or sales representative

• Your FDIS agent or sales representative will work with you to identify purchase price possibilities

• The daily retrieval percentage is typically 10-20% of your net daily MasterCard and Visa credit and non-PIN debit deposits

• Repayment will not exceed a 1.35 factor rate

• Because daily deposits vary, estimated duration of the contract typically vary from 5-7 months

8| © Copyright 2010 | First Data Corporation

FD MCA remittances appear as Adjustments on the FDIS merchant statement.

Consolidated Merchant Statement


• One stop shop for your financial needs:

• No need to switch processor relationship

• Work with a provider you already know as a trusted partner

• Quick and easy application process:

• Minimal documentation required since we already have established relationship

• Single, consolidated statement

• Experienced sales and service teams

• No collateral requirements

• No monthly minimums

• Opportunity to renew cash advance for additional funding

Why First Data Independent Sales (FDIS)?


• Business Hours

• 8 a.m. – 5:30 p.m. Eastern

• Telephone

• (855) 205-6712

• E-mail Inquiries

• [email protected]

First Data Merchant Cash Advance Support

mailto:[email protected]


• How long does it take to get approved?

• Once all documentation is received, merchants are typically approved in as little as 3-5 business days

• What can I use a merchant cash advance for?

• The advance can be used for any legitimate expense to help grow your business

• How do I make payments?

• Payments are extracted from your net daily MC and Visa credit and non-PIN debit deposits. The daily retrieval percentage is based on your processing volume.

• How do I determine my outstanding balance?

• Call FD MCA at (855) 205-6712

• E-mail [email protected]

Frequently Asked Questions

First Data Merchant Cash Advance

(FD MCA)

september 2011 first data merchant cash advance (fd mca) · cash advance defined first data...

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