SBA BUSINESS FUNDING. Business Funding Solutions. 1 (800) Se Habla Español

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1 SBA BUSINESS FUNDING Business Funding Solutions 1 (800) Se Habla Español

2 An SBA Business Funding Advance costs 25% - 50% LESS than a Merchant Cash Advance. Isn t it time you got a better deal on borrowing money? COMPARE & SAVE Merchant Cash Advance Borrow $10,000 a Repay $13,400 SBA Business Funding Advance Borrow $10,000 a Repay $11,800 You Save $1,600 On Each $10,000 Advanced! An SBA Business Funding Advance provides you with easy, short-term funding for a low flat fee. Use your funding for inventory, equipment, working capital or whatever your business needs. We will lower your costs, reduce your holdback, give you longer terms and pay off your old balance. You Do Not have to switch your credit card processing with an SBA Business Funding Advance. And we Do Not double factor (charge you TWICE on any balance) when you get additional funding. Your Business Funding Advance allows your business to get immediate cash that is paid back from your future sales. Your business can get funding because you have built up your sales volume. You pay back the funding from your future sales. Your personal credit score or collateral do not matter with an SBA Business Funding Advance. An SBA Funding Line Advance is not a loan it is an advance a business can get that is repaid from your future revenues. Repayments are normally made over a 6 to 8 month period. Many businesses have cash flow challenges. A business in need of money can use an SBA Funding Advance to get immediate cash for whatever your business needs. Get Your Funding Set Up Today (Your Application Is On Page 7) 1

3 $0 Annual Fee $0 To Apply How Does An SBA Business Funding Advance Work? Example Borrow $5,000. Repay $5,900 over 6 months. Payments are a small percentage of your daily sales. Daily Credit Card Sales Mon. Tues. Wed. Thurs. Fri. Sat. Sun. $500 $600 $1,000 $700 $800 $1,100 closed Payment $25 $30 $50 $35 $40 $55 $0 The holdback shown is 5% of credit card sales Over 7 days you are repaying an average of about $33 per day. In Six Months You Are Paid In Full. Advantages of an SBA Business Funding Advance No Double Factoring (Charging Twice For The Same Money - On renewals) 25% - 50% LESS Than A Merchant Cash Advance Use your line again and again You can take draws - Take only what you need - when you need it Our Employees are all on salary NO Commissioned Salesperson is going to bug you. You do not have to switch your credit card processing Funding from $2,500 -$250,000 Funding in 5-10 business days - Renewals in 1 hour No payment on days you are closed When sales are lower your payment drops No fixed term or payment amount No collateral required No minimum credit score required A Merchant Cash Advance from SBABF is a fixed cost contract - your price cannot change. There are no penalties, late fees, overdraft fees or anything else. We collect a fixed percentage of your future sales. If it takes an extra month or two to pay us back, your cost does not change. 2

4 How To Get Financing For Your Business Dear Business Owner; If your business needs cash for inventory, equipment, investment or to cover expenses, you can get the money you need today from SBA Business Funding. Unlike a loan or a credit card, credit card factoring is a financial transaction where a business can get immediate cash that is paid back from its future sales. Your business can get funding because you have built up your sales volume. Your personal credit score or collateral do not matter in a credit card factoring agreement. Credit card factoring is not a loan it is a simple agreement that gives you financing today. The balance is slowly repaid from a small percentage of your sales over six to twelve month period. When cash is tight, credit card factoring can act as a substitute for trade credit or a line of credit to keep your business capitalized. Many businesses have cash flow challenges. A business in need of money can use credit card factoring to get immediate cash for investment, inventory or any other needs it has. Here is an example: You need $5,000. You get 5,000 now and repay a total of $5,900 over the next 6-7 months. Your total cost to factor your future sales is a flat fee of $900. You pay only the flat fee when you use factoring. Credit card factoring up to $250,000 is available through an SBA Business Advance. 3

5 How Do I Pay Back My Advance? We use an easy, safe system to collect payments. It s called a Split-Funding Agreement. We do not bill you or debit anything from your business bank account. Instead YOU authorize your credit card processing company to send us a small percentage of your daily deposits. They will split your daily deposit between two different bank accounts. You decide how much that split should be. You do not have to change credit card processors. Here is an example: You authorize them to send a small daily percentage [5% - 15%] of your daily credit card sales back to us as a payment. They send the rest of the money directly to you just like always. This way we get paid back slowly over time without hurting your bottom line. When you are paid off the split funding agreement is shut off automatically. $1,500 Cash, Check & American Express Sales Example $2,000 Daily Sales $500 Visa, Mastercard & Discover Sales You keep 100% of these sales You keep 90% of these sales ($450) We keep 10% of these sales ($50) A split funding agreement allows us to safely extend funding to your business. You get the money you need today and the benefit of flexible payments. On slow days your payment actually drops. If you are closed you make no payment at all. We only get the exact fixed percentage amount you have authorized until you are paid in full. Then the split agreement is ended and you keep 100% of all sales just like before. Once your account is set up you can get funding in as little as one hour in the future. 4

6 Frequently Asked Questions What determines the approval of the funding? SBA Business Funding Advance are funded with the single page application and a review of your recent business sales volume. If you have $80,000 a year or more in sales or $3,000 a month in credit card processing, you can probably get funding. In fact 85% of all business owners can qualify for SBABF Funding. How long does it take to get approved and when do I receive my funds? Initial approval and funding takes just 5-10 business days. Repeat funding takes as little as one hour. Does an SBA Business Funding Advance improve my business credit rating? Yes. The repayments can be reported to Dunn & Bradstreet. What if I need to borrow more than $250,000? Additional funding may be available through the SBA Business Funding program. Please call our customer service department. Are my payments fixed? Flexible payments are the best part of an Funding Line. Your repayment amount is set as a small percentage of your sales. Your payment actually drops if your sales decline, or increases if sales are good. Most businesses enjoy this type of flexibility as opposed to large fixed monthly payments. How do I make payments? Payments are made automatically every time you batch out your credit card terminal. The credit card processing company will send a small fixed percentage of your daily sales back to us. When you are paid in full the deduction is stopped. Is an SBA Business Funding line of credit? The SBABF Business Financing Program does have some similarities to a line of credit. Once approved you do not have to draw funds right away. You can request funds at anytime in the future. Also, whenever the balance is below 60% of the maximum approved amount you can request additional funds. However, this type of financing is not considered to be a line of credit. It is a discounted sale of future receivables commonly known as receivables factoring. We are purchasing future sales from your company at a small discount. Loans and lines of credit have fixed terms and payment amounts. The SBA Business Funding Advance does not. What type of documentation is required for approval? Approval requires a completed application and your most recent 3 months of merchant processing and three months of business bank statements. All pages of each statement are required. Are there any closing costs? No. There are no closing costs or annual fees. Remember A Merchant Cash Advance from SBABF is a fixed cost contract - your price cannot change. There are no penalties, late fees, overdraft fees or anything else. We collect a fixed percentage of your future sales. If it takes an extra month or two to pay us back, your cost does not change. How can I apply for an SBA Business Funding Line? There is no fee or obligation when you apply. Simply complete the Application included in this package or apply on line at Get More Information At: s or Request our Complete FAQ s Booklet 5

7 SBA Business Funding Line Application Please complete an application on each business location for which you are interested in obtaining funding. For multiple businesses and /or federal tax ID numbers, separate applications must be filled out for each. All fields must be completed to have your file reviewed for approval. If a field does not pertain to you or your business, i.e. you do not have a second owner, please use N/A (not applicable) in that field. Please be as accurate as possible as this will ensure you the quickest funding timeline. Funding for first time clients takes 3-5 business days. Renewals take as little as 1 hour. Funds do not have to be drawn at final approval. You can call and request funds anytime once your account is opened. Want to apply online? Visit SBABF, Inc Washington Blvd. Arlington, VA Phone 1(800) Fax 1(202)

8 3 EASY WAYS TO APPLY visit Complete your application online, or your application to call Or fax your application back to (202) mail your application SBABF Business Funding 6248 Washington Blvd. Arlington, VA Your No Hassle Application Please print clearly in black or blue ink. To avoid delays, provide all requested information. Business Information: Legal Business Name: DBA Name: Physical Address: City: State: Zip: Business Phone: - - Fax: - - Type of Business: Structure (LLC, Corp. etc.): Time in Business: Average Monthly Sales: Credit Card Receipts: 9-Digit Federal Tax ID Number: - - # of Locations: #of Owners: Amount of Funding Requested: Primary Owner Information: Principal Owner Name: D.O.B: Social Security Number: Home/Mobile Phone: Home Address: City: State: Zip: Secondary Owner Information: Secondary Owner Name: D.O.B Social Security Number: Home/Mobile Phone: Home Address: City: State: Zip: Credit Card Processor Information: Processor: Terminal Type: Time With Processor: Do you currently have a merchant cash advance? Yes No Balance: $ Lender Name: Additional Information: Rent / Mortgage Payment Landlord Information Name Number $0 Annual Fee $0 Hidden Fees We Can Help Improve Your Business _ Help me buy or refinance commercial property _ Help me buy or lease equipment _ Get me guaranteed 24-hour batch deposits _ Help me finance seasonal inventory _ Lower my monthly merchant processing costs _ Get me a free ATM for my location _ Low cost, high impact direct mail marketing _ Reduce my overdraft/insufficient funds fee Does the business have fluctuating/seasonal sales cycles? Yes No If yes, what are your high season months? Has your business been for sale in the last 12 months? Yes No If yes, is the business still currently for sale? Yes No Does the business have an open state or federal tax lien? Yes No If yes, has a repayment plan been in place for 90 days? Yes No Applicants authorize SBABF Business Funding Inc. and its agents, banks, or partner institutions full disclosure rights to obtain and investigate any consumer report from a credit bureau or credit agency. This includes investigating any statement or data obtained from applicants. Applicant s Signature Date Co-applicant s Signature Date