1. Merchant Cash Advance
HT1053

2. AmeriMerchant What is a Merchant Cash Advance
Merchant Cash Advance Benefits
Traditional Bank Loan vs Merchant Cash Advance
Cost Comparisons
Why Is Now A Good Time To Offer Working Capital
Required Documentation
Merchants To Target
About AmeriMerchant
NEW Product - Main Street Business Loan Preview
Contact

3. What Is A Merchant Cash Advance
A solution for a merchant to obtain working capital by selling their future credit card receivables at a discount to a purchaser (a MCA provider)
MCA provider purchases $Y worth of a merchant’s future credit card receivables today for $X and gets repaid by taking $Z of a merchant’s future credit card sales
Example:
- Merchant processes $100,000 in V/MC per month
- AmeriMerchant gives merchant $75,000 advance
- Business pays back $95,000-$100,000 at 15% holdback

4. What Is A Merchant Cash Advance
Continued
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

5. Merchant Cash Advance Benefits
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
70% of merchants renew for additional working capital
Uses for a Merchant Cash Advance
Advertising, Expansion, Partner Buyout, Cash-flow, Renovation etc.

6. Traditional Bank Loan vs Merchant Cash Advance
Fixed time period
Interest rate
Fixed monthly payment
Collateral required (personal guarantee)
Typically 2-3 years of operating history required
Decline rates than can exceed 90%
Decision process can be weeks or months
Funding time can be weeks or months
Merchant can miss opportunities
Often requires FICO scores of 700 and above
MERCHANT CASH ADVANCE (MCA)
No fixed time period
No interest rate / set cost /sale - $X for $Y
No monthly minimum payment
No collateral required for an advance
No personal guarantee
Only 60 days of operating history required
Approvals as fast as 24 hours
Much higher approval rates compared to traditional bank loans
Funds available to the merchant on average within 7 days

7. MCA Cost Comparison
MCA’s are more expensive than traditional bank loan products, however,
there are many outweighing benefits:
No personal guarantee
No real estate / assets to pledge
Higher approval rates
Less paperwork involved than a bank loan
Funds are available
Less expensive compared to certain non-bank financing
Transactions that give up equity
Subordinated debt that involves warrants, etc.
A MCA is always less expensive than doing nothing

8. Now Is The Perfect Time To Offer Working Capital
Upcoming Holiday Season
Holiday sales can amount to 50%-75% 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
For these more established businesses with better credit, we can offer a lower cost product than standard merchant cash advance rates

9. Required Documentation
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

10. Merchants To Target
Process at least $5,000 per month in Visa/MasterCard sales from their customers
Credit cards processed daily
Multiple daily transactions
Average transaction size $500 or less
Immediate delivery of goods and/or services to the customer (no future delivery)
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 times per month

11. Merchants To Target (Cont.)
Examples:
Restaurants
Nightclubs/Bars
Clothing Stores
Day Spas
Hair & Nail Salons
Liquor Stores
Hotels/Motels
Laundromats/Dry Cleaners
Pet Supplies/Grooming
Book Stores
Music Stores
Tobacco/Cigar shops
Shoes/Accessories
Gift/Stationary Shops
Coffee Shops
Eye Glass Stores
Medical Offices
Hosiery Stores
Luggage Stores
Beauty Shops
Movie Theaters
Sporting Goods Stores
Florists
Gourmet/Specialty Food Stores

12. About AmeriMerchant Leading provider of merchant cash advances
One of the oldest and most reputable providers in the merchant cash advance industry
Founded in 2002, 80+ employees
Headquartered in New York City
Founding member of North American Merchant Advance Association
Provides up to $1,000,000 in working capital
Advanced real-time reporting system
Can advance against all card types
Fast approvals

13. Main Street Business Loan Preview
Coming Soon – 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 will be offered to
businesses that typically would not fit the business type criteria for a merchant cash
advance.
Features:
Fixed daily payments
Merchant does not need to accept credit cards
Only need to be in business 1 year
Considerably less documentation needed than a bank loan
Future delivery accepted
High approval rates

14. Contact Andrew Altschuler Vice President, Business Development
(800)